The Bureau of Labor Statistics recently released figures that could be good news for the Minneapolis-St. Paul-Bloomington metro area real estate market. Of any major metro area in the U.S., the Twin Cities area had the second lowest unemployment rate at just 3.1%, or nearly 2% lower than the national percentage.
Recent job and wage growth has also remained positive over the early part of 2016, as wages in the area are increasing at their fastest pace in about six years. What makes the wage increase significant is that as home prices continue to rise around the Minneapolis-St. Paul market, homes are also more affordable and more attainable to a broader range of home buyers, and more specially young home buyers, who are expected to play a major role in the housing market over the net 12 to 18 months.
In fact, sales activity in the $150,000 and below price range has actually declined by about 18% while sales activity in other price ranges is continuing to increase. So while mortgage rates are still sitting below 4%, it’s clear that active home buyers out there still looking to take advantage of record low rates are able to afford higher priced homes, which is a good thing for both buyer and sellers in today’s ever-evolving real estate market.