It's prime homebuying season — with a caveat
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The chaos of spring and summer homebuying is over and the Twin Cities are entering the best time of the year to snag a house, according to a Realtor.com report.
Why it matters: This sweet spot gives buyers a break from the bidding wars and waived home inspections that are more common earlier in the year.
By the numbers: Early fall — particularly the week of Sept. 27 — brings some of the best conditions for buyers in the metro, according to Realtor.com, which analyzed data from recent years.
- There are 25% more listings than an average week.
- Prices fall 8% below peak season.
- Homes sit on the market 12 days longer.
What they're saying: "Home shoppers heading into fall will find an opportunity that has been hard to come by in recent years: more choices and less urgency," Realtor.com senior economist Hannah Jones said in a press release.
Reality check: These are still tough times for homebuyers, especially first-timers.
- Mortgage rates are near 7%, up from 6.25% a year ago.
- Increased borrowing costs haven't stopped home prices from rising in the Twin Cities. They were up 1.3% year over year in August, according to Minnesota Realtors. The median sale price hit a record of $410,000 in June.
- While the market is becoming more balanced — in fact, the supply of homes on the market last month was the deepest for an August since 2017 — it's still tilted toward sellers.
- Realtors consider the market healthy when there's five or six months' supply, but there's only about 3 months right now.
Zoom in: St. Paul offers some opportunities for cost-sensitive buyers. Prices have stagnated there while new listings surge.
- "Stronger listing activity should create more opportunities for buyers in the months ahead," Saint Paul Area Association of Realtors president Danielle Bickham Pelton said in a news release.
The bottom line: Buyers may get a little more breathing room this fall — if they can clear the affordability hurdle.