Affordability drops as buyers pull back—sellers turn to cash buyers for flexibility
(Isstories Editorial):- Minneapolis, Minnesota Jun 28, 2025 (Issuewire.com) – The Federal Reserve’s decision this month to hold interest rates steady has deepened the challenges facing Minnesota home sellers. With mortgage rates still hovering above 7%, the market has tilted further in favor of buyers-especially in Scott and Dakota County, where homes priced over $300,000 are sitting longer and drawing fewer offers.
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In cities like Apple Valley, Savage, and Shakopee, sellers are adjusting to a new reality: fewer bidding wars, tougher negotiations, and a shrinking pool of qualified buyers.
“The Fed’s move confirmed what most of us already knew–rates aren’t going down anytime soon,” said a spokesperson for Sell House Fast MN, a home-buying company that serves the Twin Cities metro. “For homeowners who need to sell quickly, especially in older suburbs where prices have run ahead of incomes, the market just got tougher.”
Minnesota’s Income-to-Housing Gap Is Growing
The median household income in Minnesota is $90,000, but with current mortgage rates, that income only qualifies most families to purchase homes up to $300,000–a threshold below the median price in many parts of Scott and Dakota County.
In Apple Valley, where the median listing price is well over $350,000, this income mismatch is pushing sellers to rethink their expectations. “Buyers can’t stretch the way they could in 2021 or 2022,” the company rep noted. “They’re more cautious, more demanding, and they’re walking away from deals over inspection issues, repairs, or even cosmetic concerns.”
Why Sellers Are Turning to Cash Buyers
With affordability tightening and time on market increasing, more homeowners are turning to off-market cash buyers like Sell House Fast MN- especially those dealing with repairs, relocations, or inherited properties.
“We’ve seen a noticeable uptick in calls from Shakopee and Savage in the past 30 days,” the company said. “Sellers are saying, ‘We can’t drop the price again, and we can’t wait another 60 days. What can you offer?’ We’re here to help- but it’s important they understand the bigger economic picture too.”
Sellers Must Adjust Expectations
While Sell House Fast MN continues to make fast, fair offers on homes in Scott and Dakota County, the team is encouraging sellers to be realistic about pricing.
“We can make offers, even in this market–but the math has to work for both sides,” the spokesperson added. “We’re not in the business of lowballing, but we do have to factor in current affordability, repair costs, and resale risks. It’s a tough fact pattern out there, and everyone’s navigating it together.”
Sell House Fast in Apple Valley, Savage, and Shakopee
If you need to sell your house quickly and want to skip agents, showings, and repair costs, Sell House Fast MN provides flexible, as-is offers and fast closings across the metro.
Looking to sell your house fast in Minnesota? Get your no-obligation cash offer today from a trusted local buyer.
About Sell House Fast MN
Sell House Fast MN is a trusted home buying company helping Minnesota homeowners sell their houses fast, regardless of condition or situation. The company operates throughout Scott and Dakota County, including Apple Valley, Savage, Shakopee, Lakeville, Burnsville, Farmington, and nearby communities.
This article was originally published by IssueWire. Read the original article here.
