Faribault Home Prices Saw Unprecedented Increase in 2021

Daryl Bauer. owner of Home Resource Group Remax Advantage Plus was the guest on today's KDHL AM Minnesota program.

We touched on a variety of topics.  One of the more interesting bits of information revealed was the fact he told us Faribault home prices increased 23% October 2020 to October 2021.

I asked if it was unprecedented.  His response, "I've gotta believe it's unprecedented.  I've never seen any jumps like that before.  Typically, a healthy market will see a two or three percent increase."

Bauer says an increase like that is, "Really unhealthy.  It's unsustainable.  There were a lot of years there where the Faribault market was dead in the water.  Around 2007 or so.  Faribault recovered from that about six or seven years ago.  There was a lot of ground to make up for but now we're at that point where we've gone beyond making up for that market.  We're kind of predicting for things to settle out here a little bit coming up over the next year or year and a half."

There are still very low interest rates.  Bauer shared, "We just did a mortgage for a client of mine last week.  2.75% VA (Veterans Administration) zero down mortgage for him.  Just absolutely amazing and we're seeing that across the board in all the different type of loan programs.  Whether it's conventional, we're seeing 3% or less regularly."

"You get into the USDA (United States Department of Agriculture) Rural Development type loans they are consistently under 3%." Bauer added, "Anybody who has a good job, has taken care of their credit over the years can be a home owner right now."

Bauer will answer any real estate questions with no obligations at 952-240-5773.

A podcast of today's show is below.

This is interesting to read.