Andy Babula, director of the real estate program and the Shenehon Center for Real Estate at the University of St. Thomas, spoke with KSTP about shifting housing trends in Minnesota following a new Realtors report. Babula said a slight decline in home prices is tied to reduced buyer demand, influenced by factors such as interest rates, inflation and broader economic uncertainty.
From the article:
According to a February housing report by Minnesota Realtors, median sale prices fell 1.5% to $339,900.
That’s good news for homebuyers, but we wondered what is driving those lower prices.
“When there are fewer people out there looking for homes, that’s going to bring down the pressure on prices,” explains Andy Babula, a real estate expert at the University of St. Thomas. “Interest rates, unemployment rates, how people feel about their jobs, about inflation. That affects both greater Minnesota and the Twin Cities area.” ...
Some buyers might be considering waiting longer to see what happens with interest rates.
“If you’re waiting for interest rates to come down, I think that’s kind of a gamble,” Babula says. “I tend to expect that rates will come down a little bit, but I don’t see anything in the next year or two.”
