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        <title>Real Estate Blog</title>
        <link>http://www.minneapolisurbanhomes.com/blog/2025-11/</link>
        <description></description>
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    <guid>https://www.minneapolisurbanhomes.com/blog/why-buying-a-home-still-pays-off-in-the-long-run.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/why-buying-a-home-still-pays-off-in-the-long-run.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Why Buying a Home Still Pays Off in the Long Run</title>
    <description> <![CDATA[ 



 


Renting can feel much less expensive and much simpler than buying a home, especially right now. No repairs, no property taxes, no worrying about mortgage rates – you just pay the bill and move on with your life.


But here’s the part people don’t talk about enough: renting doesn’t help you build your financial future. Meanwhile, homeowners grow their net worth just by owning a home.


So, if you’ve been wondering whether buying is still worth it, the long-term math is clearer than you might think.


Renting vs. Owning: How the Costs Really Compare


Let’s break down one of the key differences between renting and buying. When you rent, your payment goes to your landlord, and then it’s gone. When you own, part of your payment comes back to you in the form of equity (the wealth you build as the value of your home increases, and you pay down your home loan).


So, while renting may seem more affordable now, you have to remember it comes at a long-term cost: you’re not building your wealth. And it turns out, that’s a bigger miss than you may expect.


First American recently analyzed the long-term financial impact of renting versus owning a home. They compared mortgage payments, property tax, insurance, repairs, and maintenance against the equity gained through home price appreciation and paying down the mortgage. And they did that during several different time frames to see if it tells a consistent story:




2006: the start of the housing bubble


2015: 10 years ago


2019: just before the pandemic (the last normal years in the market)


2022: when mortgage rates jumped




In each time frame, two things were true: renters ended up losing money over time. And homeowners gained it.


Here’s some data so you can see this play out. Each color represents one of the key time frames. The solid lines show the buyer’s investment over time and how their net worth actually grew the longer they lived in their home. The dashed line represents the renter’s investment. In the end, they sank more and more cash into renting without gaining any financial benefit.


The takeaway is simple: time in a home builds wealth. Time renting doesn’t.


Basically, homeowners come out ahead. And the analysis shows that’s even after you factor in the other expenses that come with homeownership, like insurance, repairs, and property taxes. And that's the case for every time frame First American looked into.


On the flip side, renters spent money on their rent, but didn’t gain any long-term financial benefit. That’s true no matter what window of time you look at in the study.


Now, that doesn’t mean buying always beats renting in the short term. But the longer you own, the wider the wealth gap becomes.


Affordability Is Starting To Improve


You might still be thinking, “Okay, but buying feels out of reach for me right now.” Fair.


The past few years haven’t been easy for buyers. But things are starting to shift. Mortgage rates have come down this year, home prices are softening, and incomes have been rising. And according to Zillow, typical monthly payments have gotten a little easier compared to this time last year. Not by a lot, but enough to make a difference.


No, buying isn’t suddenly easy. But it is easier than it was just a few months ago. And in the long run, history shows it’s worth it. 


Bottom Line


Renting may feel less expensive today, but owning is what builds real wealth over time. And with affordability starting to improve, the path to homeownership may be opening up more than you think.


If you’re curious what buying could look like for you, let’s connect. We can figure out your next move, pressure-free.
 ]]> </description>
    <pubDate>Wed, 26 Nov 2025 10:38:00 -0600</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/most-experts-are-not-worried-about-a-recession.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/most-experts-are-not-worried-about-a-recession.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>Most Experts Are Not Worried About a Recession</title>
    <description> <![CDATA[ 



 


Homebuyers are watching the economy closely, and for good reason. Buying a home is one of the biggest purchases most people ever make. And some recession talk in the media has made a lot of would-be buyers second guess their plans.


In the latest LendingTree survey, almost 2 in 3 Americans said they think a recession is coming. And 74 of respondents say that's having an impact on their financial decisions.


But here’s the good news: the experts aren’t nearly as concerned.


Most Americans Expect a Recession, But Most Experts Don’t


According to an October report from the Wall Street Journal (WSJ), only 1 in 3 experts surveyed say we may be headed for a recession sometime in the next 12 months (see graph below):


If the expert economists aren’t super worried, should you be? We’re not in a recession right now. And there’s no guarantee we’re heading into one.


What we do have is uncertainty – and the best way to handle that is by leaning on facts, not fear. You can do that by making sure you have the information you need to make an informed decision.


Tips for Buying a Home During Periods of Economic Uncertainty


Here’s the best advice anyone can give right now. While it’s important to keep an eye on what’s happening in the economy, that shouldn’t necessarily overshadow your real-life needs. Economic shifts come and go, but the reasons people buy homes rarely change. Danielle Hale, Chief Economist at Realtor.com, explains:


“Well-prepared buyers who have been waiting on the sidelines are likely motivated by personal and lifestyle needs like growing families, new jobs, or retirement. And these considerations can outweigh short-term economic uncertainties . . . ”


Timing your move around real life (not the news cycle) is what matters most. 


But here’s the key. If you're going to buy a home right now, job stability really matters. You need to feel confident in your income and know you can comfortably manage your mortgage payments, even if your situation or the economy shift.


If your job is secure and you’ve built a cushion of savings, experts say you don’t necessarily need to delay. Just keep these tips from theeconomists at Redfin in mind:




Set a budget and stick to it: Don't overextend. Make sure your payments are affordable and your savings can cover any surprises. This includes factoring in costs likely to rise, like home insurance and taxes.


Negotiate: There are more homes for sale right now, and other buyers may pull back because of their own fears. That gives you more negotiating power when working with sellers. Use it to get the best deal possible.


Be strategic about payments and mortgage rates: Talk to lenders about what payment you can afford and the rate you can qualify for today, as well as your options if rates go down later on.


Consider selling before you buy: If you already own a home, selling first can reduce the financial pressure and help solidify your budget for your next home.




But nothing replaces the value of having a trusted team around you, especially right now. As Bankrate says:


“Buying a home during a recession can sometimes be a good idea – but only for people who are lucky enough to remain financially stable . . . Be sure to enlist the help of an experienced local real estate agent. Not only do agents know their markets well, they will also work to get you the best deal in any given situation, including a recession.”


Bottom Line


Most Americans think a recession is coming. But most experts don’t. 


So, you don’t necessarily have to put your moving plans on hold. If your finances are solid, your job is stable, and you have a real need to move, you can still make it happen. 


What’s holding you back from making your next move? Let’s talk it over.
 ]]> </description>
    <pubDate>Thu, 20 Nov 2025 09:34:00 -0600</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/the-top-2-things-homeowners-need-to-know-before-selling.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/the-top-2-things-homeowners-need-to-know-before-selling.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>The Top 2 Things Homeowners Need To Know Before Selling</title>
    <description> <![CDATA[ 



 


Here’s something you should know before you sell your house. The homeowners who win in today’s market aren’t the ones waiting it out or stepping back. They’re the ones who adapt from the start.


A number of homeowners this year didn’t get the outcome they wanted. But it’s not because something’s wrong with the market. It’s because something wasn’t right with their expectations. 


Realtor.com reports57 more homes have been taken off the market compared to last year. That means they listed... but didn’t sell. But here’s the honest truth. It was mostly because of two things: price and timing.


And if the seller had come in with the right mindset on each, their sale would’ve gone differently. Here are the top 2 things you can learn from those other sellers.


1. Price It Right from Day 1


Let's start with the most common sticking point: the asking price. Today, 8 in 10 sellers expect to get their asking price or more. But that confidence doesn’t always line up with reality.


According to Redfin, only 1 in 4 (25.3) sellers are actually getting more than their list price.


And here’s where the mismatch is coming from.


A few years ago, you could set any price and buyers would come running, no matter what the price tag said. Odds are, you’d still sell for over asking. But things are different now.


Buyers have more options than they've had in years, so they can afford to be more selective. If your price feels even a little high to them, it’ll get overlooked in a heartbeat.


And for the homeowners who had that happen, some end up pulling their listings instead of making a simple adjustment that could have changed everything. Which is a shame, honestly. Because a small price tweak is usually all it takes to bring buyers in and get the deal done.


According to HousingWire, the average price cut right now is just 4. 


Think about that. Other sellers are listing too high and giving up rather than dropping their price 4. If they’d just started 4 lower, they may have already sold. So, before you list, talk to your agent about what’s working nearby. They’ll help you find the sweet spot that’s competitive, realistic, and still protecting your bottom line.


And here's the kicker. If you’ve been in your home for a while, your equity gives you room to set your list price more competitively and still come out way ahead. Unfortunately, those other sellers didn’t seem to realize that.


2. Don’t Rush the Process 


Another common misstep: expecting your house to sell in a weekend.


Many sellers right now remember when homes sold in as little as hours – and they expect that to happen today. But in most markets, that's not the reality anymore.


It takes closer to 60 days to go from listed to sold, which is actually normal (see the gray in the graph below):


It just feels slower because they’re comparing it to the lightning-fast pace of 2020 and 2021.


Think of it like driving 65 mph on the highway, then exiting and going 25. It feels like you’re crawling, but it’s actually the right speed for where you are. That’s what other sellers can’t seem to get over. But you can get ahead of that, by knowing what to expect.


Today’s buyers are more intentional. They’re taking their time, weighing their options, and making thoughtful decisions, which is creating a much healthier housing market.


So, if you’re planning to sell, don't expect it to happen instantly. And don’t assume your house won’t sell if it doesn’t go under contract in the first weekend. 


It’s normal for these things to take time.


If you want to make sure your house sells as quickly as possible, talk to your agent about ways to stand out, whether that’s through staging, photography, or strategic pricing. With the right advice, the right price, and the right prep work, it can still sell quickly.


Bottom Line


If you’re thinking about selling, don’t let the market discourage you, let it guide you. The listings that didn’t sell this year weren’t doomed. They just started with the wrong strategy.


You can still win if you price right, are patient, and work with a local agent who knows how to position your home from the start.


Because in today’s market, success isn’t about waiting for conditions to change. It’s about getting your expectations right from day one.
 ]]> </description>
    <pubDate>Wed, 19 Nov 2025 10:53:00 -0600</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/the-housing-market-is-turning-a-corner-going-into-2026.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/the-housing-market-is-turning-a-corner-going-into-2026.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>The Housing Market Is Turning a Corner Going into 2026</title>
    <description> <![CDATA[ 



 


After several years of high mortgage rates and hesitation from buyers, momentum is quietly building beneath the surface of the housing market. Sellers are reappearing. Buyers are re-engaging. And for the first time in what feels like forever, there’s movement happening again.


No, it’s not a surge. But it is a shift – and it’s one that could set the stage for a stronger year in 2026.


So, what’s driving the comeback? Here are three big trends that are slowly breathing life back into the housing market right now.


1. Mortgage Rates Have Been Coming Down


Mortgage rates are always going to have their ups and downs – that's just how rates work. Especially with the general economic uncertainty right now, some volatility is to be expected. But, if you zoom out, it’s the larger trend that really matters most.


And overall, rates have been trending down for most of this year (see graph below):


And in just the last few months, we’ve seen the best rates of 2025. According to Sam Khater, Chief Economist at Freddie Mac:


“On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving.”


Here's why that matters for you. This shift changes what you can actually afford. It means lower borrowing costs and more buying power. Take this as an example.


Data from Redfin shows a buyer with a $3,000 monthly budget can now afford roughly $25,000 more home than they could one year ago. That’s a big deal. And it’s just one of the reasons why activity is picking up.


2. More Homeowners Are Ready To Sell


For a while, many homeowners stayed put because they didn’t want to give up their low mortgage rate. That “lock-in effect” kept inventory tight. And while plenty of homeowners are still staying where they are today, the number of rate-locked homeowners is starting to ease as rates come down. Life changes are becoming a bigger part of what’s driving more people to move, and that’s opening up more inventory.


Data from Realtor.com shows just how much the number of homes for sale has grown. And the really interesting part is that the market is approaching levels that haven’t been seen for the past six years (see the blue on the graph below):


That return to more normal inventory levels is a really good thing. It gives buyers more options than they’ve had in years. And it’s helping to bring the market closer to balance.


3. More Buyers Are Re-Entering the Market


And it’s not just sellers making moves. With more options and slightly better affordability, buyers are getting back in the game, too. The Mortgage Bankers Association (MBA) reports purchase applications are up compared to last year, a clear signal that demand is building again (see graph below):


And experts think this momentum will continue. Economists from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) all forecast moderate sales growth going into 2026.


Now, this recovery won’t happen overnight. It’s not a flood of activity. But it is the start of steady improvement going into 2026. And that's something a lot of people have been waiting for.


Bottom Line


After several slower-than-normal years, the market is finally starting to turn a corner. Declining mortgage rates, more listings, and growing buyer activity all point to a market gaining real traction.


Let’s connect to talk about what’s happening in our local market and how you can make the most of it in 2026.
 ]]> </description>
    <pubDate>Mon, 17 Nov 2025 10:18:00 -0600</pubDate>
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<item>
    <guid>https://www.minneapolisurbanhomes.com/blog/what-a-government-shutdown-really-means-for-the-housing-market.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/what-a-government-shutdown-really-means-for-the-housing-market.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>What a Government Shutdown Really Means for the Housing Market</title>
    <description> <![CDATA[ 



 


There’s been a lot of talk lately about how a government shutdown impacts the housing market. You might be wondering: Is it causing everything to grind to a halt?


The short answer? No.


The housing market doesn’t stop. It keeps moving. Homes are still being bought and sold, contracts are still being signed, and closings are still happening. The difference is that a few parts of the process may slow down a little, but overall, the market continues to function.


Here’s What Typically Happens 


Whenever the government shuts down, some federal agencies temporarily close or scale back their operations. That can cause a few hiccups in real estate, especially when it comes to processing certain types of government loans and insurance requirements:




“Applicants for FHA, VA, or USDA loans—which account for about one-quarter of all mortgage applications—may encounter significant processing delays due to agency furloughs.” - Selma Hepp, Chief Economist at Cotality


“By recent estimates, more than 2,500 mortgage originations per working day are at risk of delays during a shutdown . . .”  - Zillow


Flood insurance approvals may also be paused. The National Flood Insurance Program can be temporarily affected, which delays closings in flood zones.




Even with those challenges and delays, most transactions still go through. Buyers keep buying, sellers keep selling, and agents keep helping people move forward.


The Housing Market Usually Bounces Back Fast


And you can see that play out in this data. If you look back at the most recent government shutdown that began at the end of 2018 and lasted for 35 days, sales activity dipped very slightly during the closure but picked right back up once the government reopened.


Data from the National Association of Realtors (NAR) shows existing home sales slowed for about two months, and then rebounded quickly as delayed closings worked their way through the system when the government reopened (see graph below):


What’s important to note is that the slowdown you see in the orange bars on this graph wasn’t simply due to seasonality in a typical housing market cycle. The sharper, shorter drop in this case lines up exactly with the 35-day government shutdown, and then sales bounced back as soon as it ended.


What This Means for You


If you’re in the middle of buying or selling a home, don’t panic. Most deals will still move forward, even if it takes a few extra days. Jeff Ostrowski, Housing Market Analyst at Bankrate, explains:


“If you’re expecting to close in a week or a month, there could be some slight delay, but I think for most people, it’s probably going to be a blip more than a real deal killer.”


And if you’re just starting to think about buying or selling, this could actually work in your favor. Some buyers and sellers may become cautious and pause their plans during times of uncertainty, like this, and that can open a short window of opportunity.


When fewer people are active in the market, well-prepared buyers may find less competition for homes, and motivated sellers may be more willing to negotiate. These brief slowdowns often create a moment where you can make a move that would be harder once activity ramps back up.


Bottom Line


A government shutdown can cause short-term delays for some buyers, but it doesn’t derail the housing market. The last time this happened, sales picked back up as soon as the government re-opened.


If you’re unsure how this might affect your plans, or just want to make sense of what’s happening, let’s connect.
 ]]> </description>
    <pubDate>Thu, 06 Nov 2025 09:40:00 -0600</pubDate>
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    <guid>https://www.minneapolisurbanhomes.com/blog/how-to-make-sure-your-sale-crosses-the-finish-line.html</guid>
    <link>https://www.minneapolisurbanhomes.com/blog/how-to-make-sure-your-sale-crosses-the-finish-line.html</link>
        <author>richard@drgmpls.com (Richard Newman)</author>
        <title>How To Make Sure Your Sale Crosses the Finish Line</title>
    <description> <![CDATA[ 



 


If there was one simple step that could help make your home sale a seamless process, wouldn't you want to know about it?


There’s a lot that happens from the time your house goes under contract to closing day. And a few things still have to go right for the deal to go through. But here’s what a lot of sellers may not know.


There's one part of the process where some homeowners are hitting a road bump that’s causing buyers to back out these days. But don’t worry. The majority of these snags are completely avoidable, especially when you understand what’s causing them and how to be proactive.


That’s where a great agent (and a little prep) can make all the difference.


What’s Causing Some Buyers To Back Out


The latest data from Redfin says 15 of pending home sales are falling through. And that’s not wildly higher than the 12 norm from 2017-2019. But it is an increase.


That means roughly 1 in 7 deals today don’t make it to the closing table. But, at the same time, 6 out of 7 do. So, the majority of sellers never face this problem – and odds are, you won’t either. But you can help make it even less likely if you know how to get ahead.


You might assume the main reason buyers are backing out today is financing. But that’s actually not the case. The most common deal breaker today, by far, is inspection and repair issues (see graph below):


Here’s why that’s a sticking point for buyers right now:




Buyers are already stretched thin from high prices and challenging mortgage rates, so they don’t have the appetite (or budget) for unexpected repairs.


If they’re going to spend all that money, they want to get something that’s move-in ready. They don’t want to take on another high-cost project themselves.


They have more homes to choose from, so if yours seems like a hassle or if you’re not willing to fix something, they can just move on.




The sellers with the best agents have heard about this shift and they’re doing what they can to go in prepared. Enter the pre-listing inspection.


What’s a Pre-Listing Inspection?


It’s exactly what it sounds like. It’s a professional home inspection you schedule before your home hits the market. And while it’s not required, the National Association of Realtors (NAR) explains why it could be a valuable step for some sellers right now:


“To keep deals from unraveling . . . it allows a seller the opportunity to address any repairs before the For Sale sign even goes up. It also can help avoid surprises like a costly plumbing problem, a failing roof or an outdated electrical panel that could cause financially stretched buyers to bolt before closing.”


Think of it as a way to avoid future headaches. You’ll know what issues could pop up during the buyer’s inspection – and you’ll have time to fix them or decide what to disclose before you put your house on the market.


This way, when the buyer’s inspector walks in, you’re ready. No surprises. No last-minute panic. No deal on the line.


Is It Worth It?


Generally speaking, a pre-listing inspection costs just a few hundred dollars. So, it’s not a big expense. And the information it gives you is invaluable. But before you make that investment, talk to your local agent.


In some markets, it may not be worth it. And in others, it may be the best move you can make. It all depends on what’s happening where you are and what’s working for other local sellers.If your agent recommends getting one, they’ll also:




Help you decide which issues to fix


Prioritize repairs based on what buyers in your area are focusing on


Connect you with trusted professionals to get the work done


Ensure you understand local disclosure laws




That small step could save your deal (and your timeline).


Bottom Line


So, if there was one simple step that could help make your home sale go according to plan, would you do it?


If you’d rather deal with surprises on your terms (not with the clock ticking under contract), let’s talk about whether a pre-listing inspection makes sense for your house.


It may be worth it so you can hit the market confident, prepared, and in control.
 ]]> </description>
    <pubDate>Mon, 03 Nov 2025 15:38:00 -0600</pubDate>
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