|
TWIN CITIES AREA
Real estate was a hard sell again in July as potential buyers admired low interest rates and affordable homes from the sidelines. However, despite lackluster sales, the median sales price managed a modest increase of 2.3 percent over last July. The reason? The bulk of activity took place among move-up properties (homes priced at $250,000 and above). Going forward, move-up buyers are expected to pull more weight than the first-timers previously motivated by the now-expired tax credits.
Interest rates remain at 50-year lows and affordability is extremely high. According to the Minneapolis Area Association of REALTORS®, the current home affordability index (HAI), which is a formula measuring housing affordability for the Minneapolis/St. Paul market, sits at 205. An HAI of 205 means the median family income is 205 percent of the income needed to qualify for the median priced home using a 20 percent down payment and 30-year fixed mortgage.
Low interest rates are also providing refinancing opportunities for some homeowners looking to recover lost equity and lower their monthly payments. Find out how.
|
