Real Estate In Blaine, MN Monthly Market Report
Here are some key numbers from last month:
New Listings - Inventory, or lack thereof, has been an issue in the market for quite some time. Last month there were 155 new listings versus 144 in March and up from 133 in March of 2021, so a little good news there.
Pending Sales - April ended with 141 Pending transactions, up from 112 in March and up from 126 from April 2021. More good news.
Closed Sales - There were 108 closed transactions in Blaine last month, up from only 81 in March and up from 93 April of 2021.
Blaine is outperforming the broader 7 County Twin Cities market last month and this year. Overall transactions are down 12% compared to Blaine being up 16%.
The overall Twin Cities market still has an inventory problem. New listings were down 12% versus this time last year and closed sales followed almost te same 12% decline. Once again new listings increased in Blaine and therefore closed transactions also increased. Buyer demand is still there.
Mortgage rates have been steadily rising. The average rate on a 30 year mortgage is over 5% now affecting some buyers affordability. If a buyer was pre-approved last fall at 3% they can expect the purchase price they can qualify for to drop roughly $50,000 from a more than 2% rate hike.
Inflation rose at 8.54% for the last twelve months, an extremely high level. The cost of goods has risen sharply along with mortgage rates. Gas prices are close to $4/gallon and the grocery bill has increased. This will have a great affect on buyer's affordability as wages have not kept up with the same rate as inflation over the last year. The good news is the unemployment rate is relatively low at 4%, and 2.5% for Minnesota.
Global factors such as a slight Covid - 19 resurgence and the war Ukraine will also have an affect on the housing market this year. Shutdowns in China will have more negative impact on the supply chain, and the cost of helping our allies in Ukraine will continue to put pressure on inflation.
The Twin Cities Real Estate Market is starting to see some real slowdowns in transaction numbers. The Blaine Market seems to be outperforming even as the challenges with mortgage rates, inflation, and lack of homes for sale become greater. It remains an incredible time to sell your home. There is still only a one month supply of homes for sale in Blaine and days on market to a sale are down to 7 with may homes selling in the first weekend with multiple offers. We are seeing the first signs of a market slowdown so if you are thinking of making a move contact me to see if now is the right time for you.