Here’s what’s happening locally

Larry LaVercombe is a writer, filmmaker, and activist, born in Detroit and arrived in Minneapolis in 1975. He lived in a treehouse in San Diego before getting an MFA from the USC Film School. He writes most days, and as Team Larry he has been selling residential real estate in Minneapolis for 26 years.

The two biggest questions in local real estate are:
1) How is the Aug. 17 new rule about real estate commissions going to affect us?
2) What is going on in real estate?
Regarding the second question: Everybody seems to think we are going gangbusters. People outside the industry are constantly saying to me, “Wow, you must be super busy right now!” And I’m like, “Huh?”
We just now experienced a 10-year low in springtime pending sales.
Did you know this? It has been 10 years since so few houses sold in the spring.
Historically, May, June and July are biggest selling months. This year, we are at a 10-year low.
And guess what? Prices are holding.
Prices in Southwest Minneapolis have risen steadily, and just now, in the worst spring market for 10 years... prices still went up.
As I’ve said before, Minneapolis housing values are still far from their peak. They will be up again next year, regardless of interest rates. (Unless, you know, something catastrophic happens.)
MY OPINION – If you are a buyer, prices will not be lower next year.
More sales activity will mean higher values, not lower. And as global warming continues, Minnesota becomes more and more attractive.

REGARDING THE FIRST QUESTION:
The new rule that takes effect this month: Listing agents may no longer publicly announce on MLS what the seller will be paying in buyer’s agent commissions. That new rule created by the National Realtors Association is the result of a Missouri lawsuit back in March. You may have heard about when it was big national news a couple months ago, and I wrote about it back in April.
What will happen? How much will it change things? We don’t know yet, but I’ll tell you when I know more! Stay tuned!