Minnesotans are finding home ownership more affordable for several reasons these days.
First, historically low interest rates have resulted in reduced monthly housing payments, making it easier to purchase a home. Consumers with good credit, a down payment, and consistent employment are benefiting the most from the current real estate market climate.
“Slower sales activity and aggressive Federal Reserve Board actions have lowered the rates on fixed term mortgages,” said Russ Portele, President of the Minnesota Association of REALTORS®. “Because of the lower interest rates, home buyers at every price point are able to purchase homes at much lower monthly costs than they would have five, 10 or even 20 years ago.”
Secondly, pressures on the market are keeping home prices low. Home sales in the Twin Cities metro area are falling and the number of houses on the market continue to rise. The increased presence of foreclosure and short sale homes are keeping the prices of traditional listings down, too.
Home prices, both the median and average, have stabilized and remain at about the 2009 price level. Throughout Minnesota, the median home price was $154,000 in October 2010. The average price is $186,843.
Low home prices and low interest rates are adding up to serious savings for home buyers ready to take the plunge!