Cass County home prices see 32 percent increase, according to study
Cass County homes rose and the Brainerd area housing market had a “rough start” to 2014, according to a housing report by RE/MAX North Central.
In Brainerd, RE/MAX reported both numbers of home and the average sale price were down in comparing January 2014 to January 2013.
“Home sales were down slightly in the area, decreased by 2 percent and the average sold price was down 15 percent,” RE/MAX reported. “However, a few areas saw growth. Cass County saw an increase in homes sold year-over-year by 13 percent, as well as an increase in average sold price, rising 32 percent.”
For 2014, RE/MAX listed five trends for Minnesota.
• Housing prices are on the rise.
• Inventory levels will stay the same.
• Single-story homes are most desirable.
• Interest rates are increasing.
• The spring housing market will be busy.
For its top trends, RE/MAX enlisted survey results from its agents, finding nearly 79 percent believed housing prices would rise in Minnesota in 2014 mostly because of low inventory and high demand.
About 50 percent of agents believed inventory levels would be unchanged in 2014 because homeowners have low home values or are underwater. Those issues were combined with seller uncertainty in the economy, RE/MAX reported.
As baby boomers look to downsize and consider aging joints and steps, RE/MAX agents predict trending property types will be ranches, ramblers, one-story homes and condos.
While interest rates are low, RE/MAX real estate agents reported they are rising and early pre-approvals are considered essential as financing requirements make it more difficult for buyers to secure loans. For 2014, RE/MAX reported buyers need good credit and a lower debt-to-income ratio than in previous years.
With low interest rates and high buyer demand, RE/MAX is predicting a busy spring market and competitive multiple offers for properties because of low inventory.