by Mary Johnson-Pallin
There used to be a magical spot along Highway 61 with a giant blue whale (made of concrete) and a twenty-foot-tall Bo-Peep, along with a few other iconic images that, as a girl, I longed to stop and visit. Over the years, it fell into decay, and as I passed by today, I noticed the spot had become just another row of businesses along the freeway.
Things change.
We remember what was, and will never be again.
Our real estate market is like that. We grew accustomed to rates below 5%, and when they hit 7% and then more…we felt like we missed the ‘normal’ market. We thought rates would be low forever. Or at least for longer.
Think about this. 30-year fixed rate mortgages have only been around since 1971. Those first loans were offered starting around 7-8%. What if you had said then, “I’ll wait until rates get below 5% and then I’ll buy.” You would have had to wait thirty-nine years until 2010, when the 30-year fixed rate average was 4.86%, and until prices quadrupled before that happened.
Things change. Rates change. And equities continue to grow.
While no one has a crystal ball, it’s clear that our current market is good. Both for Buyers and for Sellers. Unsurprisingly, there is pent-up demand as people wait for rates to decline. In the meantime, prices are strong and will increase over time.
Seize the day.
In the Twin Cities market right now, Sellers are getting an average of 100% of their original list price. Buyers that paid over list price in the last few years because of competing offers have an opportunity here. More properties are being added to the current inventory, so it is taking Sellers an average of 45 days to sell. These are signs of a “normalizing” market. That is good news for everyone.
Take advantage now when rates are reasonable. Single digit mortgage rates abound, and those whose responsible decisions have gifted them with good credit scores have an even better opportunity to secure fixed rate mortgages at lower rates.
Build equity for the future. Real estate is a good investment and provides more than just shelter. Acting now to meet your housing needs – whether by downsizing or upsizing – provides you with tax advantages, equity growth that keeps pace with the economy over time, and even more important, the kind of housing that fits your lifestyle.
Things change. Seize the day.
Sources: Average 30-year fixed mortgage rate by year; Infosparks for Feb 2025