Caleb Carlson (Three Rivers Real Estate Team)

Caleb Carlson is a Twin Cities realtor with the Three Rivers Real Estate Team. 

A staple of this platform due to his immense knowledge of the real estate industry, the 10-year realtor has seen much change in the last couple years, but right now, the Twin Cities, like most markets, has seen everyday people struggle to get into single-family homes. 

“It definitely is more difficult to get into a home if you’re a first-time buyer,” Carlson states. 

“There is no doubt about that.” 

While the affordability of real estate for the average citizen has plummeted, there are still properties available for decent prices, but Carlson says that to land those properties, buyers need to be creative in their approach. 

Yes, having more money will help, but picking up a few extra shifts at work or forgoing your caramel macchiato every day likely won’t move the proverbial needle.

Instead, Carlson says that he has noticed a trend among young buyers that he says could easily be rectified, provided they’re willing to exercise humility and plan for tomorrow, as opposed to today. 

“A lot of young professionals feel like they need to have a newer car. Even a new Toyota or Kia could be $25,000, and that could be a $300-400 monthly payment,” Carlson outlines. 

“Sure, by going with a new Kia, you’re saving money because it’s not an S-Class Mercedes at $1,200 per month, but even within that frame of thought, there are ways to cut your monthly expenses [i.e. buy a cheaper car], but the reality is those people are not likely going to make the sacrifices that are required to become a homeowner.”

In that sense, becoming a homeowner often boils down to willpower, and the ability to delay gratification, whether that means driving your dad’s 2012 Corolla or taking on a part-time job to generate supplementary income. 

“But society is telling young people that they shouldn’t have to do that,” Carlson insists. 

“I mean, society is right if they’re okay with purchasing a home later in life rather than sooner, but as we both know, Quentin, people want to get into homes now.” 

Some real estate agents in the Twin Cities have advised clients to expand their preferred areas, to expand into rural areas, but particularly with the Twin Cities market, Carlson has found that moving even an hour in any direction doesn’t guarantee the availability of affordable single-family residences. 

For his part, Carlson cannot solve that which ails the proletarian. 

In many ways, all he can do is serve as a trusted consultant for buyers who are willing to work within their unique set of circumstances to acquire real estate. 

“People will always need shelter. That’s never going to change,” Carlson deadpans, adding that in some cases renting isn’t a bad strategy, at least in the short-term.  

”There are still disadvantages that come with long-term renting, particularly to your net worth, so while renting is often a solid short-term play, over time the data suggests that people will accrue more wealth by building equity in real estate.”

Some buyers, including young entrepreneurs and single-income families, have opted to purchase condos in the Twin Cities, citing their low price points and the ability to turn these properties into rentals at some point in the future. 

Those people, while forfeiting space and likely greater appreciation of their asset(s), are keen on building for the future instead of trying to buy their “forever” home in 2024. 

It’s a strategy that’s counter to the conventional path of buying single-family and watching the property gradually appreciate, but for many, it’s a tactic employed to evade renting and create future flexibility. 

Moreover, proponents of this blueprint serve as a stark reminder that achieving success in real estate is challenging, and that being able to accumulate properties, charge profitable rents, and then go relax on the beach with a mimosa in hand is often more fantasy than reality. 

At least initially. 

“Housing is shelter first and a financial vehicle second,” Carlson emphasizes. 

“Even condos, which don’t generally appreciate, typically will keep up with inflation, so while I don’t view them on the same level as single-family, they will enable you to park your money in an asset that should keep your money safe.”

Since Carlson last appeared on this platform, in fall 2023, much has changed.

New legislation will lead to changes in the way listing agreements between real estate agents and property owners are drafted. 

The way real estate agents are compensated will also undergo a revamping come August 2024.

“In the state of Minnesota, realtors will no longer be able to publicly advertise what they’re offering as compensation,” Carlson says. 

This, coupled with an upcoming presidential election, inflation, and high interest rates have kept real estate mired in a season of unpredictability. 

“There is so much going on in the world, but again, the one constant is people will always need to pay or rent their shelter,” Carlson reminds readers, before interpolating perhaps a scary yet all too true prognosis for the future. 

”As presently constituted, and this has been the case throughout time, those with resources and assets will fare better, especially in real estate as the competition at different price points dwindles.”

The gap in homeownership may continue to widen, and so for those looking to avoid having to sign another lease and/or escape renting forever, it’s crucial to have a competent realtor like Carlson spearheading your real estate endeavor. 

“How much do you value your time?” Carlson responds rhetorically when asked why partnering with a bona fide pro is essential. 

“You can do almost anything on your own, but if you don’t know what you’re doing, it’s likely going to take you a long time to achieve an optimal outcome. With real estate, it’s the same thing. If you’re working by yourself or with an unseasoned real estate agent, don’t be surprised if things aren’t progressing like you would hope.”

Adds Carlson, who has been featured in a real estate TV show on Amazon, and who is on track to facilitate over 100 transactions in 2024 alone. 

“There are many reasons why the fail rate for real estate agents is 87% after two years, and also 87% after five years. A large percentage of real estate agents often encounter situations they don’t know how to handle. It’s not because they’re incompetent, but buyers and sellers alike want to work with the best. It’s really that simple.” 

And in a Twin Cities market where homes are listed and sold that very same day, most people can’t afford (financially and mentally) to work with a real estate agent who cannot efficiently navigate all the inherent obstacles the housing market will inevitably present. 

Keep in mind:

Come November, Donald Trump may win another election and return to the preeminent position in the White House.

There are also signs that inflation is slowing down.

Either way, much of what headlines the news cycle impacts the housing market.  

“Bad news in the world means good news with interest rates,” Carlson says, then mentioning that there is belief among industry types that there will be a rate cut this fall and next year. 

“That will increase affordability.”

But one variable won’t change. 

“40% of houses are paid off, so those people have a cheap place to stay, and many of those other mortgages have interest rates at sub-4%,” Carlson explains. 

“What that means is the majority of those people won’t want to move off their low interest rate, and inventory will consequently still remain low, so prices for homes will slowly continue to increase.”

Adds Carlson, highlighting just how vital real estate is to the American economy: 

“Real estate is 25% of the GDP in America. So many things accompany home purchases, that generally if the housing market is booming, the economy is booming. That’s the cyclical nature of housing and how much of an effect it has on everything else.” QS

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Today’s post is sponsored by realtor Caleb Carlson!

If you’re a Twin Cities homeowner or property owner who is looking to buy/sell, I personally endorse Caleb Carlson. 

A staple of the Twin Cities real estate market, Caleb has helped countless homeowners buy and sell properties. 

Whether you’re a first-time buyer or this is your fourth time moving, Caleb’s expertise spans all corners of the real estate market. 

To get in touch with Caleb, call or text the number 701-520-8569 to speak with him directly!