The Twin Cities is currently experiencing a red-hot housing market. The heat wave is hitting the northwest metro area, where low inventory is leading to a tough market for buyers. But don’t let that deter you from house hunting. With the right Realtor® by your side, you’ll be armed with the right information and the right strategy to make a great offer and nab your dream home.
Market update for Rockford, Buffalo, St. Michael, and Delano
Here’s a look at the stats for the northwest metro for May 2016. The months of inventory figure is a good indicator of how hot the market is. Anything under 4 months is considered a hot market.
- Rockford experienced a 50% increase in new listings and a 13.6% decrease in median sale prices. Sellers got 99.9% of their asking prices, and there’s only 2.9 months of inventory in the city.
- Buffalo experienced a 34.5% increase in new listings and a 9.4% decrease in median sale prices. Sellers got 100% of their asking prices, and there’s only 3.1 months of inventory in the city.
- Delano experienced a 13.8% increase in new listings and an 8.7% decrease in median sale prices. Sellers got 98.3% of their asking prices, and there’s 4.7 months of inventory in the city.
- St. Michael experienced a 37.1% increase in new listings and an 18% increase in median sale prices. Sellers got 96.5% of their asking prices, and there’s only 2.7 months of inventory in the city.
So what does that mean? There are more listings in the area, but properties are priced more competitively and sellers are nearly always getting their asking price. That’s a hot market, indeed!
Making a strong offer in a hot market
When the market’s as hot as it is in the northwest suburbs, you and your Realtor® need to be strategic in your house hunt. First, find a Realtor® who’s well connected with other Realtor®s and constantly learning about properties about to go on the market. A Realtor® who’s local will have a pulse on your target community.
Once you’ve hired a Realtor®, set realistic expectations for your house hunt. It’s likely you’ll tour at least 10 homes in the same number of weeks, and you might make multiple offers. Don’t expect sellers to counter on a low-ball offer.
Instead, get pre-approved for a loan before starting your search to narrow down the properties you tour. See if you can remove some of the contingencies that put off sellers, such as the sale of your current home. Offer a quick close to entice the seller to take a look at your offer. If your Realtor® suspects the seller has an emotional attachment to their property, write a letter that explains why you’d love to purchase their property.
The most important tip for house hunting in a hot market is to be patient. Don’t get discouraged when your offer is rejected. And don’t settle for a property because you’re sick of looking. Renting for a few more months is preferable to living in a home you hate.
Ready to take on the hot real estate market in the northwest metro? To buy your next home in the Rockford-Buffalo-Delano-St. Michael area, contact Trent Shipley at Keller Williams Realty Integrity NW today.