Why right now is a great time to buy in Downtown Minneapolis
We had a chat with our go-to Mortgage team leader, Allison Shaw with Megastar Financial, to discuss current mortgage rates and get her take on the market today.
Here are some top reasons why it’s a fabulous time to buy in downtown Minneapolis right now and how we can help:
Where are rates sitting currently?
Allison’s team is seeing rates at roughly 3% for a primary condo purchase!
What about with everything that’s going on in the market, city, and world right now?
Allison’s take: The affordability index is the lowest it has been in almost a decade which is made up of three components:
Home prices
Mortgage payments as a percentage of income, and
Interest rates
Because of this, Allison’s team is encouraging buyers who were thinking of maybe waiting a year or so to purchase, to take advantage of the current affordability and buy now while there are these known factors that are favorable to make the most of.
Inventory is high
There are more properties available for sale downtown today then there were since late 2011. This means there are simply more homes to choose from in the downtown marketplace for buyers to find the right fit.
This is a pro of purchasing downtown as opposed to the single-family home market, where inventory is extremely low, and dropping. This is causing home buyers to sacrifice needs and wants for the sake of offer acceptance.
Data retrieved from the NorthstarMLS July 8, 2020
Data retrieved from the NorthstarMLS July 7, 2020
showing activity is low
We are also seeing a decrease in showing activity downtown. With a lower volume of showings scheduled, buyers are experiencing less competition standing between themselves and the downtown property of their dreams.
A positive note for sellers: The average number of showings until a property is under contract is also the lowest it has been in 10 years. This means less routine bother and displacement on sellers listing their homes for sale while still being able to sell.
Seller Tip: Because inventory is high, and showing activity is low, talk to us about how to help make your property stand out from the crowd.
What are desirable features of downtown properties that I won’t get in another property?
Location
Our downtown neighborhoods have unbeatable amenities to enjoy year-round. From fabulous parks, to taking a hike up the forested river’s edge, downtown has a spot to offer everyone’s tastes. Heading out of the city for the day? Our downtown offers easy access to all major freeways.
Views
Whether looking for views of the river, the skyline, or are looking for big windows with lots of natural light, there is absolutely a loft, condo, or townhome for you!
Amenities
Whether you’re seeking a pool, sauna, snow and lawn care, dog park nearby, attached and heated garage, car wash, rooftop deck or community room for entertaining, dog wash, and more without the worry to maintain these amenities, we can match you with the perfect building for you! But let’s not forget that we are spoiled to have amenities all around us - not just in our buildings! Easy access to parks, trails, restaurants, and more are right out your front door.
Are condos right for an investment purchase?
Condos are a fabulous choice for an investment property for many reasons. An income generating property, sans the maintenance of a single family home is a great addition to any portfolio whether expanding and diversifying, or just starting out. With Allison seeing rates hovering at about 3.5% for a second home/rental property it is also an extremely affordable time to grow your investment portfolio through downtown real estate.
What if i Need to sell my home first before making a purchase?
We can help you or refer you to a spectacular agent in your neighborhood, whether that means selling your out-of-state home, or right here in the twin cities.