Rochester real estate agents and home builders share updates in housing market
ROCHESTER, Minn. (KTTC) – Experts in the housing market say the price to buy a home is still high.
Supply chain shortages and limited inventory are part of the blame for the increase.
Real estate agents with Dwell Realty Group shared what people should know about buying or selling a home during this time.
“The best time for anybody to buy is right now, especially if they have to,” said Robin Wolfram, Dwell Real estate agent.
She said the sellers market is still doing well but not as good as last spring.
“Homes were just going like gangbusters. Offers going anywhere between 10/20 percent over asking. It’s something we’ve never seen before,” she said. “I think the most important thing for sellers to remember is that they have to be realistic about price.”
But buyers may have a more difficult time finding a home.
“We aren’t seeing enough inventory to meet the demand therefore prices were really going up,” Wolfram said. “That’s why I think sellers need to be a little more realistic. Because the homes aren’t coming on the market as much. The demand is there but I think buyers are just waiting to see when those prices are going to level off a little bit.”
Dwell told us that in 2020 compared to 2019 there was a 13 percent increase in listing sold. In 2021, compared to 2020 listing sales, it went down about 9 percent.
Meanwhile, homebuilders say people who want to construct a new house are having to pay more money.
“New construction has become very popular,” said Craig Johnson, owner of Majestic Homes .“The lumber did spike up a lot but it has come down. I would say it does just kind of continually increase, unfortunately. Building costs, the new lots in town are substantial more expensive than the older lots as well so that’s a big part of it.”
Getting parts to build homes is delaying construction as well.
“As a matter of fact, our wait times on windows have never been longer. It’s the longest it’s ever been right now. Cabinets and garage doors, and a lot of different parts and pieces that you wouldn’t think were an issue are a big issue right now. So, our construction time went from three to four months to anywhere from five, six, seven, eight, nine-month now,” said Mike Paradise, president of Bigelow Homes.
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