Buyer Demand Spurs Duluth Housing Market Rebound

By KBJR News 1

June 26, 2013 Updated Jun 26, 2013 at 9:35 PM CST

Duluth, MN (NNCNOW.com) --- According to a new report, 2013 is on track to becoming one of the strongest years in housing recovery since the big decline more than five years ago.

Real estate experts in the Northland are pointing to strong employment and high demand as contributing factors for recovery in our region.

From Lincoln Park to Congdon Park neighborhoods, demand for home sales is up across Duluth citywide.

According to Len Sarvela, President of the Duluth Area Association of Realtors, the city's steady employment buoyed by spike in demand and limited supply is the driving force behind the rebound.

"A very high employment rate that I like to call it, rather than unemployment, people have jobs and lower interest rates, I think all of those factors have spurred this market for the past six months," said Len Sarvela, President of DAAR.

A recent national report from the S&P, shows national homes prices jumped more than 12 percent in April, and in the Northland those numbers are reflecting similar figures.

Recent home seller Suzy Wagness says the current upswing and buyer demand made her selling process near seamless.

"We had about 18 to 21 showings in 11 days, and on the eleventh day our house sold, it was a lot easier and it was actually a great experience," said home seller, Suzy Wagness.

And while estate agents say consumer confidence is up in the market, they also stress lenders are being more cautious this go around.

"There is cautious optimism with some of the lenders in the area on kind of opening up their qualifications, but I do think one of the bigger issues we got going on right now are the interest rates that are starting to climb," said Sarvela.

And whether you're in the market for buying or selling, experts say now is the time.

Duluth real estate experts project the next six months will bring a return to strong housing numbers in the region and are optimistic that the industry will be bounce back.

Jeremy Brickley
jbrickley@kbjr.com