What happens if we price too high?

We are seeing overpriced or under-marketed homes sit on the market for longer and not selling. With rates where they are, buyers are having to look for lower-priced homes to keep their monthly mortgage payments affordable. No, home prices are not crashing, but what it's doing is definitely hurting sellers who:
 
A.    Don't prep their home well for the market.
B.    Ask too much as an initial price (due to lack of information or an agent advising them that isn't in the know).

With rates depending on inflation and continually fluctuating, you just NEED TO BE REALISTIC WITH VALUE and consider doing any projects that will increase the buyer’s interest and the value of the home. You need to strongly consider staging if there is a lack of furniture & decor as it is a high ROI. Staging helps listings stand out and sell quicker, which equals more money in your pocket. This is NOT a market where we can "list high" and "hope for bites" as that is causing stale listings that struggle to sell statewide. We ask ourselves, what will cause a motivated buyer to choose your home over others? Truth - If a buyer is looking for a home in your area we need to be sure that we are priced similarly to other homes (our competition) with MORE features and benefits OR that we are priced below our competition with the SAME features and benefits. This helps attract the most realistic and highest-paying buyers.

What does this mean for BUYERS?
 
High prices, mortgage rates, and historically low inventory remain hurdles, but with listings lasting longer on the market, buyers have more options to choose from right now. With more options comes more negotiating power in some markets. If inflation slows and the Fed hints at rate cuts, mortgage rates could trend downward, improving affordability. Median home prices rose 4.8% statewide to $330K and 5.0% in the metro to $370K.
 
As we slowly approach spring season in Minnesota, there is hope in the air and more sellers are getting excited to sell with the prospect of more buyers actively searching. Data shows seasonal increases in buyers actively looking will continue as expected, even with rates remaining high. There is more room for negotiations and price isn’t necessarily the determining factor, it’s crucial to know how to be competitive in all areas of an offer (inspection, down payment, close date, etc). 
 
Another great option for buyers is HOUSE-HACKING. Looking for a property with multiple units (duplex, triplex, 4plex, etc.) or enough bedrooms that you could rent out some to friends/family – this creates a HUGE opportunity to become a homeowner AND get help paying down the mortgage at the same time, resulting in a more affordable option where you don’t have to wait for rates to decrease. I’m passionate about this method and would love to explain more if you’re interested in this option.

Where the Market Stands Today
The mortgage and housing markets are constantly evolving, and staying informed is crucial for making the best financial decisions. This quarter, we’ve seen significant shifts in mortgage rates, economic indicators, and home affordability. Here’s what you need to know:
 
Mortgage Rates & Trends
   Rate Fluctuations: Over the past few months, mortgage rates have been experiencing volatility due to inflation concerns and Federal Reserve policy adjustments. While we’ve seen some relief from peak levels, rates remain higher than in previous years.
  Affordability Challenges: Higher rates have impacted home affordability, making it more important than ever to explore different loan options and creative financing solutions.
  Refinancing Opportunities: While traditional rate-and-term refinances are less common in this environment, cash-out refinances and HELOCs (Home Equity Lines of Credit) have increased as homeowners leverage their home equity.
 
Economic Outlook & Housing Market Trends
  Inflation & the Fed: The Federal Reserve continues to monitor inflation closely. While recent data suggests some easing, future rate hikes remain a possibility. Mortgage rates will likely react to economic reports and Fed policy decisions.
  Housing Inventory Shifts: More homes are entering the market, but demand remains strong. Sellers are adjusting pricing strategies to stay competitive, creating opportunities for buyers to negotiate.
  Home Prices Stabilizing: After years of rapid appreciation, home prices are stabilizing in many markets. This presents a more balanced market for both buyers and sellers.
 
What This Means for You
  For Buyers: Rising rates make it essential to shop around for the best mortgage terms. Working with a mortgage broker ensures access to multiple lenders and the most competitive financing options.
  For Homeowners: If you’re considering tappi

There are plenty of on-market and off-market investment opportunities as the year gets going. Our team is consistently closing deals on small multifamily properties, commercial properties (retail, industrial, apartments, mixed-use), flips, and single-family homes. We are a top Residential team at REMAX and a top producing Commercial team at REMAX. While flips carry more risk due to market uncertainty, we’ve helped investors secure discounted single-family homes with strong cash flow, as well as multifamily and commercial properties that banks are eager to finance. The past quarter has brought more winning deals with motivated sellers, lower rates, and higher cash-on-cash returns. Many commercial owners are open to selling, often due to 1031 exchanges, rising debt costs, portfolio shifts, or life changes. Having the right team to find these opportunities is key!

Key Benefits of Real Estate Investing
 
  Tangible Asset – A physical investment that holds intrinsic value and can be rented or utilized.
 
  Consistent Cash Flow – Rental properties generate steady income through tenant payments.
 
  Long-Term Appreciation – Properties typically gain value over time, increasing wealth.
 
  Leverage Opportunities – Financing allows investors to acquire more property with less upfront capital.
 
  Tax Advantages – Deductions on mortgage interest, property taxes, and depreciation can lower tax liability.
 
  Inflation Protection – Real estate values and rental income often rise alongside inflation, preserving purchasing power.

Real estate remains a powerful tool for building financial stability and long-term wealth!
If real estate investing drives you, focus on saving and staying financially conservative so you’re ready to buy when the right deal comes along. Your future self will thank you as property values rise over the next several years. Be diligent in your underwriting—plan for the worst to avoid unexpected risks, especially with deferred maintenance and capital expenses. But don’t let fear hold you back. If a deal makes sense, the numbers work, and you’re in a position to buy—go for it! The best opportunities go to those who are financially prepared and pre-qualified. If you’re ready to invest, let me know—I’m seeing some great deals right now. I’ve been saying this for months, and I’ll say it again: 5–10 years from now, we may look back at this as a time of huge opportunity—don’t sit on the sidelines!
 
 
**From what I see as a realtor (and my team members) who is currently helping others buy investment real estate and buying it myself as an investor: Those who try to time the market perfectly, tend to never buy real estate and instead spend the most time trying to predict the future. Right now, many are on the sidelines, and it may be a great time to be active if you are in the financial position to do so.
 
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I hope this market update was helpful! If you have any questions regarding this information or anything else real estate-related, please reach out.  I'm happy to help with whatever you need!