Minneapolis-St. Paul, MN-WI

There is no doubt that the Minneapolis-St. Paul, MN-WI combined statistical area (CSA) is one of the hottest housing markets in the country right now. According to Realtor.com, the CSA saw a median home price increase of 7.4% in 2018, and they predict that prices will continue to rise by 4.8% in 2019. This is good news for sellers, but it can make finding a affordable home difficult for buyers, especially first-time buyers.

There are several factors driving these trends in the CSA housing market. One is population growth; since 2010, the CSA has seen an increase of over 5%. This population growth is being driven by strong job prospects and a high quality of life in the region. The Twin Cities are consistently ranked as one of the best places to live in the United States, and this is attracting more and more people to move here.

Another factor driving up prices is low inventory levels. There are simply not enough homes on the market to meet demand, which has been exacerbated by a recent surge in homebuilding activity following years of recession-related slowdown. According to Zillow, there was a 9% decrease in homes available for sale in 2018 compared to 2017 levels – and this trend is expected to continue into 2019 as well.

All of these trends point to one thing – if you’re thinking about buying a home in the Minneapolis-St Paul CSA, you need to be prepared for competition and be willing to pay more than you might have anticipated just a few years ago. However, despite these challenges, buying a home in this region still remains an excellent investment – one that will likely see healthy returns down the road as prices continue to rise along with demand