Photo by Dwayne Black A for sale sign is posted in front of a house on Main Street in Marshall

MARSHALL — Buying a home is always a big choice as there are many considerations — having thorough knowledge of all the fees involved, setting and staying within a budget plus being educated on the taxes, closing fees, and so on. While those things are still important, other items nowadays to consider when buying a home in Marshall is the amount of homes available, type of home, and competing offers.

“The Marshall area continues to face very low housing inventory, a challenge that has persisted for several years,” said Morgan Mahoney, owner/broker of Full Circle Realty Group in Marshall. “There is strong demand for a variety of housing options, especially larger family homes and one-level living. Local associations are already full, and interest in this type of convenient housing is increasing not only among seniors, but also with younger generations.”

Across the country, the scarcity of housing has been consistent and Marshall is no exception. There are many reasons for the low housing inventory including high prices and delays in building homes. On the flip side, reasons for the higher demand over supply involve more Millennials wanting to buy homes and also the lack of builders which have in return caused a surge in demand over supply.

“I’ve often thought part of the reason our housing inventory has dwindled is because it became increasingly common for people to own multiple properties,” Mahoney said. “With historically low interest rates, it became more feasible for individuals to afford both a primary residence and a second home whether as a vacation property or a smaller place closer to family. Over the past five years, we’ve also seen a significant rise in short-term rentals like Airbnb and VRBO, which likely absorbed a notable portion of the housing supply that might otherwise have gone to long-term buyers or renters.

“Marshall does not have enough housing supply, which is pushing buyers to look in neighboring communities,” Mahoney added. “This increases demand in those areas, reducing their inventory and driving property values higher there as well. While home values remain high and interest rates have softened somewhat, many homeowners are reluctant to move. Trading a 3% mortgage for a higher rate on a home with an inflated value has left many choosing to stay in their current homes longer.”

For those looking for a house, the most popular ones are homes that are part of homeowners associations as well as starter family homes and single family homes, according to Mahoney. Still, even if people are lucky enough to find a home they love, the bidding to see who gets the home has only often just begun.

“Many homes are still receiving multiple offers, with a large number of cash buyers making it difficult for first-time buyers with financing to compete,” she said. “In some cases, buyers are waiving inspections out of desperation to secure a home, which can lead to costly problems later if repairs or defects are discovered after the purchase.”

With housing demand on the rise and the urge to buy climbing, Mahoney says demand will likely continue to trump supply and will also probably continue until construction catches up.

“We can’t stress enough to sellers, the value of publicly listing your home due to high buyer demand,” she said. “There are a lot of local buyers, plus consumers from out of state looking to move back closer to home or relocate here for a job. Currently, new development is limited. While investors have considered building, it’s generally not feasible unless the buyer is constructing their own home. With material costs starting to decline, there may be renewed interest from developers to build more homes in the future.”

The latest average home value year-to-date through August, per the Minnesota Realtors Association in Lyon County is $190.000, a 5.6 % increase from 2024. For the southwest Minnesota area, there was a 2.3% rise for the year-to-date through August with the average home costing $179,000.