During my five-plus years in real estate, I have had the good fortune of not having to work through a significant economic downturn. One thing I get all of the time is, "boy, it must be a great time to be working in real estate". While I do tend to agree with that statement, it's mainly because I simply love what I do. The reality, when it comes to the market, is that I would welcome a more balanced market with open arms. Yes, houses are selling for more money than they have in the past, and it's a wonderful phone call to make when I get to tell my seller when they have a line of people waiting to pay over asking price for their home. But the reality for all but one of those buyers in line? Another disappointment.
So what’s causing this? Reach back in your brain to the last economics class you took and pull out the file for basic supply and demand. Simply put, we have a housing shortage in Minnesota, and there are just more people who want to buy houses right now than there are people who want to sell them. There is significant data out there showing that, particularly in the entry level price range, things may not level out until we can figure out how to get more homes built for the people that want them.
"That's great, I still want to buy a home - what do I need to do?"
Hey, I'm glad you asked. Hopefully I haven’t made it sound impossible to make this happen, because it's not. Here’s my piece of advice...get educated about buying a home in this market. Just like anything else, there are plenty of ways to learn more about the strategy of buying a home when it's competitive. Read things online, keep up with the news, etc...what's the best way, though? Get connected with someone that lives and breathes this exact thing: a good agent.
One of the most important nuggets any good agent in Minnesota is going to tune you in on is market timing. We deal with about seventeen different seasons in this region...spring, summer, fall, winter, slushy, mucky, monsoon, muggy, everything either covered in leaves or black ice just to name a few...so when is the right time to buy or sell? Well, everyone’s needs are different. So find someone who can show you the benefits and downsides of each particular timeframe depending on what you want to accomplish.
Lucky for you, there’s an amazing team at VIBE ready to help. Whether it’s strategizing on how to pre-market your home to drive demand before it even hits the market, or understanding all the levers you can pull to get your offer to stand out in a competitive offer situation, we are here to help you win. It’s what we do and, like I said, we love it.
Steve Anderson is the Broker and co-founder at VIBE Realty