MINNEAPOLIS - The housing crisis of 2008 took its toll on the market nationwide. It still has not fully recovered but it is on the way back up, experts say.
“Obviously we saw 2007, starting to feel a little pain. Then 2008-2011, then 2012. Now we are seeing a little more of that comeback," said Judy Shields.
Shields has been a realtor in the metro area for about 15 years and is now the President of the Minneapolis Area Association of Realtors.
“We are definitely having to dig deeper than we would have to normally dig for homes than we would in a balanced market,” she said.
On Tuesday, the University of St. Thomas published a real estate analysis showing the supply of homes was the lowest it has been in 10 years.
"I think there is extra buying pressure right now. There's a lot of people out there looking and not a lot available, so it just magnifies the problem."
Herb Tousley is the director of The University of St. Thomas Real Estate Program. He says the supply of homes has not kept up with demand year to year. Tousley says the metro median home price was $215, 000 at year end in 2015, 10.4 percent higher than January 2014.
“If you are looking for a home, be ready,” Tousley said. “Get your financing pre-approved. If you find something you like a lot in a good neighborhood be ready to act on it right away.”
The low supply of homes, Shields believes, is reflective of some still trying to recover from the 2008 crash.
“We still have folks that are probably still a little upside down on the value of their home,” Shields said. “That is probably dragging out some of that inventory.”
Shields and Tousley also point to other factors being responsible for the low supply and high demand. Things like the concern of increased interest rates, people looking to buy rather than rent and businesses recruiting out of state talent.