Minnesota Realtors say home sales are down 5.1% in the Twin Cities and 4.9% statewide for the month of January, according to a Fox 9 report. Those in the know are pointing to high interest rates that refuse to settle down.

The median home prices in the Metro are $370,000, with interest rates averaging 7%, according to Minnesota Realtors. Experts say current homeowners feel tied to their homes because their current interest rates average around 2.4% to 4.5%. Minnesota Realtors add new listings rose 8.3%, but there is still a shortage of homes for sale.

Realtors are saying:

“For a buyer, several years ago, they were probably paying closer to 12 to $1,500 a month for their payments, and now, with the interest rates being higher, it’s $2,200 a month for their mortgage,” said Patti Jo Fitzpatrick, President of Minnesota Realtors. “That has affected the buyers.” That $2,200 a month for a mortgage doesn’t include things like taxes and insurance. According to Minnesota Realtors, the median-priced home is $2,800 a month compared to $1,800 in 2021.

On the buyers’ side, some homeowners are looking to buy a new home despite it all.

“It’s the right time for us. We’re going to be happier in the new home, and because it is, it’s just the right time in terms of the rest of our finances. It will be better off financially and on a more stable financial footing if we sell now and take care of some other debts that we have,” said Amber Ronning, a potential home buyer.

Their entire article online is HERE.