Thursday, May 5, 2022 / by Brittany Aspenson
A few markets where buyers will face less competition for homes.
Many buyers are either uncomfortable or unable to compete in the many multiple-offer situations throughout our Twin Cities market. Today I wanted to talk about some of the less-competitive markets where you may have more time to make a decision and less pressure to offer so much over asking price.
The first market to look at is the downtown condo market of Minneapolis and St. Paul. Minneapolis has 3.5 months of inventory, and St. Paul has 2.5 months, which is quite a bit more than most markets. The suburbs of these areas are more competitive, with just 0.9 months of inventory. Given that there’s more supply to choose from, you’ll have more time to consider your decision and make the best choice.
The prices in this market are good, too. The list-to-sales price ratio in Minneapolis is 99%, St. Paul’s is 100%, and it’s 102% in the outer suburbs. That means you won’t have to bid as far above asking price to win as you might in other markets.
"New construction homes are a great way to get what you want without the competition."
The second market to consider is the new construction market, especially in the second- and third-ring suburbs of the Twin Cities. There are actually a couple of types of new construction homes to consider. One option is a spec home that's in the process of being built. You can usually get into these fairly quickly. The other type is a fresh-build home, or one you’d have to start from scratch with a custom or semi-custom builder. Both are good ways to get what you want without facing as severe competition as you might in the resale market.
Third, consider properties that have been on the market for over a few weeks. These homes might be a little overpriced or may need some work done. This could be an opportunity to get a deal from the seller and pay less for the home without having to compete against other buyers.
The market to avoid if you want to stay clear of multiple offers would be the single-family homes priced between $300,000 and $400,000 as this is a very competitive market. Right now, our absorption rate is less than one month, the days on market is less than 10 days, and the list-to-sales price ratio is over 103%.
If you’re hoping to avoid multiple-offer scenarios as you look to buy a home, give us a call or send us an email. We’d love the opportunity to dig deep and uncover the right house for you.