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Rising Listings Spark Market Activity in the Twin Cities

We are definitely seeing an increase in listings in our Twin Cities marketplace. The builders I speak to have mixed reactions. Some view the increased competition for their spec and model homes negatively. However, the upside is that the entire market level is rising. More listings bring more buyers and heightened activity. It appears that buyers, perhaps influenced by articles like this one, anticipate lower rates and are eager to get their listings out.

The inventory of homes for sale increased 13% YoY in April, but that only served to increase transactions (pending sales were up 7.8%). The data indicate that more homes for sale is leading to more transactions as frustrated buyers are able to find a few more homes. The acute shortage of homes remains.

In popular areas, homes are still selling rapidly. This positive activity becomes a self-fulfilling prophecy: listing a house attracts buyers who in turn become sellers of their departure residences, leading to an improving market. We are seeing small signs of this currently. Let’s hope no other market events slow this down.

A key takeaway from this article is to shop carefully for a mortgage loan. I’ve noticed this a few times in the past weeks – one buyer paid too much, and another had to postpone closing to avoid overpaying. Now seems like one of the best times to ask friends and family for a strong referral. It’s a significant transaction and dealing with a sub-par mortgage company can negatively impact your experience.

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