(FOX 9) - Minneapolis Area Realtors released their annual housing report on what the Twin Cities residential real estate market looked like last year helping them predict how the market will act in 2022.
"We’ve had good markets, but this is about as strong as I’ve seen," realtor Jerry Moscowitz, part of Minneapolis Area Realtors, said.
He says a strong market means home values continue increasing, or homes continue to appreciate, while the market remains active.
Moscowitz says one of the biggest factors creating a competitive housing market in Minnesota is an imbalance of supply and demand. There are far more buyers interested in purchasing a home than there are homes on the market.
"Right now, what we consider a balanced market would be five to six months supply of inventory, and we’re sitting right now is more around the one month [range], right above that," Moscowitz said.
He says part of the reason for that is over the last ten years, fewer new homes are being built, especially in lower price ranges. He also points out that people thinking about selling their home may be thinking twice since they’ll also face a competitive buyers market.
His suggestion to buyers in 2022: don’t wait. He says there’s nothing happening in the market right now that would indicate home prices will go down. In fact, he says interest rates will likely rise while prices rise, meaning in the future you could end up paying more for less.
For more information on the housing market "monthly indicators" click here.