Coronavirus and the Housing Market

Lower Interest Rates vs. Economic Uncertainty How will coronavirus affect the housing market? The answer likely depends on two questions: 1) which Buyers?; and 2) which segment(s) of the housing market — specifically, which price points? So, at the lower end of the market, especially in the Twin Cities, there remains an acute shortage of...
Read More

Spring 2015 Housing Market Multiple Choice

Short-Term Forecast Twin Cities real estate pro’s are anticipating a slow-down from this Spring’s torrid pace sometime later this Summer. Why? a. Rising interest rates; b. Projected low levels of inventory; c. Declining home affordability, especially in the market’s lower rungs most popular with first-time Buyers; d. Cumulative agent exhaustion. Correct answer:  all of the above. Minus...
Read More

Home Prices Up, Affordability . . . Up, Too (??)

Affordability’s Three “Ingredients”:  Housing Prices, Mortgage Rates, & Employment Don’t rising home prices make homes less affordable? In general, yes. The exception is when interest rates are falling faster than home prices are rising — the case right now — and wages and employment are improving (also true). From 4.6% to ???? So, from a...
Read More

Are 2013 Home Buyers Better Off?

Lower Rates, Yes, But Higher Prices (& Fewer Choices) First, a caveat:  to home Sellers, higher home prices are an unalloyed plus. More money at closing is . . . more money (Realtors paid commissions like it, too).   And lower interest rates are catnip to Buyers — at least ones financing their purchase. But at what...
Read More