Factors Influencing Real Estate Sales, By Alan Olson, Broker
by Admin Admin
on Thursday, March 22nd, 2012 at 3:05pm.
Recently the NATIONAL ASSOCIATION OF REALTORS announced that interest rates for a 30 year fixed mortgage were the lowest in 60 years.
In addition, the report cited that inventories of homes for sale were down to a 6.2 month supply. 6 months is considered a balance for supply vs. demand.
Minnesota unemployment is down to 5.6% which is below the national average.
Pending real estate sales in Minnesota are up 14.5%.
The housing affordability index is the highest ever which deals with household income vs. home prices.
Prices in Minnesota have been stable for the last 12 months.
These are all factors that have positively affected real estate sales. Now that inventories are low, it is a better time for sellers to sell and of course low interest rates make it financially more affordable for buyers.
My advice for buyers and sellers entering the market.....use a professional full time real estate agent that knows not only the past comparables but one who knows the present ones and the trends.