(FOX 9) - A newly released report from Minneapolis Area Realtors shows the average price for a home in the Twin Cities in April was $370,000, up 10% from April of last year and up 51% compared to April of 2017.
The report also found that rising costs have pushed the housing affordability index down to levels the Twin Cities market hasn’t experienced since 2004.
The Twin Cities market continues to struggle with housing inventory. Inventory in April was down 9.2% compared to last year and marks the 25th consecutive month of inventory declines.
Minneapolis Area Realtors President-elect Nene Matey-Keke says one of the reasons the market is so out of balance right now is because of unanticipated disruptions from the pandemic. He says, many people and families wanted more space for home offices or school work during the pandemic, so they were moving. Now that some of those pandemic needs have become less urgent, he says the market could start easing back to a more normal.
"There are circumstances that have made people want to move. Well, those circumstances aren’t as prevalent, so, you’re not having as many people having that strong push and desire to move around. So, is there some going back to a normal intent and interest? Yes," Matey-Keke said.
If you’re in the market to buy, Matey-Keke recommends you make sure you’re prepared for the process, have a pre-approved loan, and if you’re interested in a house on the market act fast, because it likely will not stay on the market for long.