In the Twin Cities region, more millennials and first-time home buyers in 2018 will feel the squeeze of low inventory and rising prices from over the last year. These buyers, who typically want an affordable home priced at $300,000 or less, now have fewer options.
As home prices continue to rise, larger, move-in ready properties are edging out of the first-time buyer's price range. Baby boomers, who are often the ones selling the homes that first-time buyers are seeking, are staying put longer due to lack of affordable new development in the condo and town home market.
Non-traditional neighborhoods and first and second ring suburbs – such as Richfield, Robbinsdale and Columbia Heights – are seeing increased activity as buyers expand their search area to find a home that fits their budget.
Data and insight provided by RE/MAX INTEGRA, Midwest. Data reflects January-November 2017 and the same time frame for 2016