Zillow was wrong: Home prices aren't falling in the Twin Cities
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Twin Cities home prices continue to rise, refuting a gloomy forecast back in January.
By the numbers: Zillow predicted the Twin Cities would be among the five coolest metro areas in the U.S. for home sales and that prices would fall by 3% in 2024.
- If Zillow's forecast had played out, it would have been the first home price decline in the Twin Cities since 2011.
Reality check: Twin Cities home prices were up 3.7% in the first quarter of the year, according to the Federal Housing Finance Agency.
- Median sales prices have increased every month of 2024, including a 4.1% year-over-year jump in April, according to the Minneapolis Area Association of Realtors.
Flashback: Two local experts pushed back against the January Zillow forecast.
- Libby Starling of the Federal Reserve Bank of Minneapolis told Axios she expected prices to remain stable, while David Arbit of Minneapolis Area Realtors predicted a rise of 2% to 4%.
Yes, but: One thing Zillow was right about is that the Twin Cities housing market is cool compared to other metros.
- In the U.S., home prices rose 6.6% in the first quarter of 2024, according to the Federal Housing Finance Agency.
- Of the 100 biggest metro areas, the Twin Cities ranked 83rd for home price increases.
Of note: Zillow did not respond to requests for comment.
The bottom line: This is bad news for buyers, who aren't getting a break on home prices or interest rates, which are still averaging 7% for a 30-year mortgage.
- But it could be worse. Home prices in Charleston, S.C., are up 15.4% this year, according to FHFA.