Breezy Point, Minnesota, is synonymous with wide-open spaces, rugged lakeside scenery, and lovely affluent communities. It’s a great place to live or own property, but those looking to buy or sell Breezy Point real estate this year might not find the market as easy to read as it has been over the past several years. Check out the following market insights in order to understand the trajectory of home prices, inventory, and mortgage rates affecting the Breezy Point housing market this year.
Background on the market
Real estate markets across the U.S. have seen incredible buying and selling activity, price movement, and fluctuations in inventory over the past few years. Home sale prices in the U.S. as a whole have seen major capital appreciation, with prices peaking in the summer of 2022. After dipping throughout the remainder of 2022, prices began rising again in 2023, leaving buyers and sellers wondering where the market will be moving forward.
Located by the beautiful Pelican Lake, Breezy Point is a small city with a variety of well-kept residential properties, resorts, and golf clubs. Breezy Point boasts evergreen appeal, regardless of market fluctuations. This high-end real estate market is seeing rising prices and falling inventory in 2023, even as buyers contend with relatively high mortgage rates. Barring any unexpected changes, it seems 2023 could be favorable for sellers, although buyers haven’t completely given up the upper hand during transaction negotiations.
Home sale prices in Breezy Point
Although home sale prices dipped in 2022, 2023 has brought an increase in home prices in Breezy Point. Based on the median listing price per square foot in Crow Wing County in May 2023, local real estate prices increased to meet July 2022 data. Prices may continue to climb, but there is no reason to assume that additional price movement will be particularly significant.
Home inventory in Breezy Point
Home inventory is one data point that can be used to gauge how the market is doing. Based on the current active listing numbers in Breezy Point, home inventory is low. There are still plenty of housing opportunities available, but inventory is down from a historical perspective. Since reduced inventory represents a constraint on the supply of homes, low inventory can often go hand in hand with increased home prices. Breezy Point has followed this trajectory, as prices have been rising in 2023 while inventory has remained low. If prices continue to rise over the remainder of the year, it could cause some buyers to pull back.
Mortgage rates
Mortgage rates are a major factor influencing buying and selling behavior in the real estate market. Leading up to 2023, mortgage rates rose throughout 2022, peaking above 7%. While these rates are not especially high from a longer-term historical perspective, modern home buyers and investors are shocked to see rates this high after years of ultra-low interest rates. As such, monitoring the direction of rates throughout 2023 will be essential to ensure you stay up to date on market trends.
As far as forecasting the direction of mortgage rates goes, it is necessary to look at the country as a whole. In the U.S., the Federal Reserve can raise or lower interest rates depending on a variety of factors, such as inflation. Because the Reserve’s federal funds rate approximates what banks pay for access to capital, banks then, in turn, need to charge their clients slightly more in order to turn a profit. As such, mortgage rates tend to rise and fall over time.
It cannot be guaranteed that home buyers will find relief from elevated rates in 2023, but it is likely that rates will not continue to climb but instead level out. With the Federal Reserve’s capacity for interest rate hikes almost exhausted due to decelerating inflation and strain on the economy, mortgage rates are not likely to climb higher. Barring a sudden emergency rate cut by the Fed, you can expect interest rates to remain close to their current levels throughout the remainder of 2023. That said, it’s always advisable to keep one eye on interest rate decisions and inflation readings to look for signs of changes in the market. Significantly lower inflation would likely be a harbinger of lower interest rates.
With interest rates settling into a steady rhythm, inflation beginning to wane, and homes boasting high, profitable values, now is the perfect time for buyers, sellers, and investors to enter the Breezy Point housing market and reach their real estate goals. Buyers may have to work with higher home prices to secure a property they love, but with a real estate professional by their side, this is more than doable. At the same time, sellers looking to make a profit on their homes may receive top-dollar offers, as the housing supply is relatively low and buyer competition is high.
Learn more about Breezy Point real estate
The market will always fluctuate, but these ups and downs shouldn’t deter you from pursuing your real estate goals. If you’re interested in checking out the Breezy Point market first-hand, a local professional at Larson Group Real Estate would gladly help you. Larson Group Real Estate is a team of seasoned real estate experts working with some of Breezy Point’s most lucrative properties. They also have ample knowledge and experience selling and purchasing real estate for clients in neighboring communities such as Brainerd and Crosslake.
As the #1 Keller Williams team working in the state of Minnesota for the past half-decade, the agents at Larson Group Real Estate can guide you through your real estate purchase or sale in Breezy Point, regardless of what the housing market brings in 2023. If you’re ready to see what the top-performing real estate advisors at Larson Group can do, get in touch today. They’d be more than happy to help you find the home of your dreams in Breezy Point.
