October 1st, 2018 11:29 AM by Joan Rusco
The economy is booming with growth now reaching 4% a year. The housing market is showing this strength. The message here: don’t be discouraged by rising prices and the recent increases in VA loan rates here in Minnesota. Turning to those rising rates we see the VA loan rates are still, from a historical perspective, low. One year ago VA loan rates averaged just over 4%. They’ve increased less than one percentage point. Of course, VA loan rates are dependent on your own financial situation. Call Brad at VALoansMN and get a much more accurate reading of your own rate possibilities.
The growing economy is also resulting in an increase in home prices. While we at VALoansMN serve veterans in Minnesota, the Dakotas, Wisconsin and Iowa. For our purposes we’re going to isolate the housing market in Minneapolis.
The Redfin real estate brokerage reports for the past three months the Minneapolis real estate market has become quite competitive. Using a scale of 1 to 100 where 100 is the most competitive we find Minneapolis with a 90 rating. Here’s how that translates into you’re finding and buying a home using your VALoansMN mortgage.
According to Redfin the average price of a home in Minneapolis has increased 5.2% in the past year. The price per square foot is currently averaging $163. Don’t get bogged down on the price per square foot. It's a valuable number for builders but means little for home shoppers. Price per square foot tells you zip about location, landscaping and other pertinent factors considered when choosing a home.
About that competitive market number mentioned earlier; when you find your dream home you may be competing with other buyers. According to Redfin data typical homes in Minneapolis are receiving up to 3 offers. It is not unusual for the winning bidder to pay anywhere from 1 to 4% above asking price. We at VALoansMN cannot emphasize enough: you need to be prequalified for your mortgage before you find the house you want. Brad at VALoansMn will provide a pre-qualification letter to use when making an offer. Sellers want to know if they accept your bid you will be able to secure financing. This letter will go a long way toward establishing confidence in the offer. A good realtor should also emphasize your status as a U.S. veteran. Many home sellers will give preferences (as they should) to those who have served.