Twin Cities 2020 Market Forecast
By: Brady Erickson | Realtor
Market perception and misconceptions.
It should be no surprise that many of my conversations are real estate conversations. One of the most redeeming qualities of these frequent conversations is hearing what perceptions of the market are floating around in the minds of many. My goal in this article is to shatter some misconceptions and clear the way for a reliable 2020 market forecast.
The market can be understood by what it is not.
Yesterday, I found myself in a conversation with a lady who has lived in Minneapolis for many years. As it came out that I am a realtor, she transitioned into telling me about her perception of the current market. It was fascinating to see how her logical sequence came together based on her experience, both current, and past. Here’s a quick look at her reasoning:
- What has happened before will happen again (market crash).
- Tons of homes are selling.
Therefore:
- Sellers aren’t going to get top dollar for long, and buying could be a fool’s errand because of the currently inflated prices.
In short, she concluded that because the housing market has shifted before, and because there are plenty of houses for sale in her neighborhood, there must be some sort of market crisis forthcoming. But is this true? We must persist to see the forest for the trees.
Cut to the chase already.
The conclusion that a market crisis or even a downturn is imminent is quite unfounded. Her logical sequence was valid (technical term) but lacked soundness (also a technical term). This means her chain of reasoning made sense (valid), but it’s only sound if all the premises are true, which is not the case in this example. Let’s take a look at the misinformation:
- Market downturn? A book could be written on the nuances of the relationship between downturns, but suffice it to say, past results are not predictors of future success or failure. Take the DOW’s best performers on a given year and compare it to their next year, that or watch the Twins next season…
- Tons of homes are selling? Very few homes are actually for sale. In fact, we are still hovering around record low inventory. There are roughly 11,000 homes for sale in the greater metro; that may sound like plenty of homes, but it pales in comparison to pre-crisis averages above 20,000.
By looking at the hard data and not settling for quick assumptions, we can start to paint a clearer picture for the coming year. Again, past results are not necessarily future predictors, but these charts show us what conditions were and are in place and how they correspond to the 2020 market forecast picture.
What it tells us: There has indeed been a slight uptick in homes for sale, however, that uptick does not alleviate the demand for housing, making a seller’s market a reality for yet another year.
What it tells us: Similar to the “Homes for Sale” chart, this chart indicates that there would be no homes left on the market after 2.3 months if no new homes were listed. More confidence for a seller.
What it tells us: Days on market can be overblown, but the recent increase in DOM is far less than historic norms. Homes are moving fast and will continue to move fast, especially as spring approaches.
What it tells us: The median sales price is heading in the right direction for sellers. I expect softer appreciation than in recent years, but appreciation nonetheless.
In Summary.
It is fair to assume another year of growth in the Twin Cities housing market. By pairing the housing data above with other economic data, we find no serious kinks in the system. Mpls/St. Paul presents enough upside to inject confidence in any buyer or seller. Notice I said both buyer and seller. But why the buyer you might ask? Simply put, this appreciation projection is not limited to the next year alone, and home bought this year will retain value for the foreseeable future. So here’s to an action-packed 2020!
Been hearing a lot about vuasanca lately. Checked it out on VuaSanCaVN and it lives up to the hype. Addictive gameplay and cool graphics. Get your game on here: vuasanca
Looking for a new club to check out? VN123 Club is worth a look-see. I like the variety of games they have, and the support seems pretty responsive. Maybe I’ll see ya there: vn123 club.
Heard you can tải vua săn cá from VuaSanCaVN now. Downloading was quick and easy, no annoying pop-ups. Gameplay is surprisingly addictive. Definitely recommend giving it a go. Get the download here: tải vua săn cá
Yo, saw some buzz about pk2wingame. Decent selection of games maybe? Let me know your experience. pk2wingame
Spotted djgame in the feed. Looks promising. Need to check it out after work. You should too. djgame
Thinking about trying pr777casino. Anyone recommend any specific games there? Share the knowledge! pr777casino
N777login giving me some good vibes today! Logged in and ready to roll! Join the fun at n777login.
Hey, 66jili is a good choice if you’re looking for variety. They got a bunch of games you can try. It’s worth checking them out to see if they got anything you like. 66jili
kk222 is on my go-to list! Always a steady stream of action here, site performance is reliable. If you want something solid, this might be your spot. kk222
Oi, mates! Need that 10cric apk to level up yer betting game? Found a decent resource here about it! I’ve been having a cheeky flutter myself on the platform the past few week. Check it out 10cric apk.
82Bet! Heard some good things. Time to jump in and check it out for myself see what they got. 82bet
Heard Khelo 24 Bet has some decent bonuses! I’m gonna check ’em out now. See the potential bonus here!: khelo 24 bet bonus
Quick payouts and a very fair system. It is hard to find a reliable spot these days, but idbongeslot delivers exactly what it promises.
The interface is super clean and easy to navigate even on my phone. Really loving the variety of games available on kr32red.
The variety of games here is insane. I spent hours exploring different slots and they are all high quality. pkp998 is where the real action is.
Finally found a platform that doesn’t lag during peak hours. The registration process was a breeze. Great job guys at phjljl1.
The interface is super smooth and easy to navigate. I really appreciate the variety of games available here. Highly recommend acc444bet to everyone!
Finally found a site that actually pays out consistently. The customer support team is also very helpful when I had issues with my account. Highly recommend idstudiobet78.