Willmar’s housing market is a hot topic, with homes selling quickly and buyers wondering how to navigate the competitive landscape. To get a clear picture of what’s happening, we are turning to the experts. This post captures the key insights from Heritage Bank’s own Jared Williamson and Chris Vraa, who recently shared their knowledge on the KWLM radio station’s “Ask the Expert” segment.
They discussed everything from new developments to interest rates, offering valuable advice for anyone looking to buy a home in the Willmar area. Whether you are a first-time homebuyer or looking to make a change, understanding these local trends is the first step toward making a smart move.
What’s Fueling Willmar’s Housing Demand?
A key driver of the Willmar, MN housing market is simple: more households are forming than homes are available. Young adults are moving out of family homes and transitioning from renting to owning, creating a steady stream of new buyers.
This trend is further boosted by community growth efforts, such as Vision 2040 Willmar. This program aims to improve the city’s appeal and infrastructure. As Willmar expands, new rental properties are being built, but they are not slowing the demand for homeownership. Instead, these developments often serve as temporary homes for people who eventually want to buy, keeping the pressure on the housing supply. This cycle of household formation and rental-to-owner transitions keeps the market active and competitive.
Senior Living: A Game Changer for Inventory
One of the most significant factors reshaping the local market is the rise of new senior living facilities. Projects like StoneRidge senior living and other similar developments are providing attractive options for retirees who want to downsize or move into a community with more amenities and fewer maintenance responsibilities.
How does this affect the broader market? As seniors transition into these new homes, they are selling the single-family houses they have lived in for decades. This is gradually freeing up much-needed inventory, creating new opportunities for younger families and first-time homebuyers. This shift is crucial for balancing supply and demand, as it reintroduces established, well-maintained homes to the market for a new generation of buyers.

Who’s Buying Homes in Willmar?
The market is seeing activity across the board, but two groups stand out.
First-Time Homebuyers
Many young individuals and families are eager to enter the market. These first-time homebuyers in Willmar are often well-prepared financially but face stiff competition for starter homes. The limited availability of properties in the entry-level price range means they must be prepared to act quickly when a suitable home becomes available.
High-End Home Movement
At the other end of the spectrum, a noticeable trend is emerging where homeowners are selling their mid-range properties to move into more expensive, high-end homes. This creates a chain reaction: as one family moves up, their previous home becomes available for another buyer. This movement stimulates activity across different price points and contributes to the overall drive of Willmar real estate trends.
Interest Rates and Affordability
Nationally, interest rates have been a significant topic of conversation, and their impact is felt here in Willmar. While rates have stabilized from their recent peaks, they remain higher than what many homeowners are used to.
Many current homeowners are enjoying the benefits of low-interest mortgages secured in recent years, making them more selective about when to sell. Transitioning to a new home often involves adjusting to today’s interest rates, which may result in higher monthly payments, even for similarly priced properties. This dynamic has contributed to a tighter housing supply, presenting both challenges and opportunities for buyers. For those entering the market now, affordability and rate fluctuations are important considerations. However, with careful planning and the right timing, buyers can still find great options that align with their goals.
Local Mortgage Advice from the Experts
Navigating a competitive market requires preparation. Jared and Chris shared some essential tips for prospective buyers.

Get Pre-Approved First
Before you even start looking at houses, get pre-approved for a mortgage. A pre-approval letter from a lender like Heritage Bank NA, Willmar, shows sellers you are a serious, qualified buyer. In a market where homes can receive multiple offers, this gives you a significant advantage.

Work with a Local Realtor
An experienced local Realtor is an invaluable asset. They often know off-market opportunities, homes that are for sale but not publicly listed. These connections can give you access to properties before they hit the broader market, helping you avoid bidding wars.

Manage Your Finances
Your financial health is critical. Avoid making large purchases, opening new lines of credit, or changing jobs in the months leading up to your home purchase. Lenders look for stability, so maintaining a consistent financial profile is key to a smooth approval process.
Looking Ahead: What’s Next for Willmar?
The outlook for Willmar’s housing market remains strong. Experts predict that demand will continue to outpace supply for the next five to ten years. Generational shifts, with millennials entering their prime homebuying years and baby boomers downsizing, will keep the market active. While new construction will help, it will take time to fully meet the community’s needs. Buyers should expect a competitive environment to persist for the near future.
Ready to Buy in Willmar?
The Willmar housing market is dynamic, driven by strong demand, new developments, and shifting demographics. While challenges like limited inventory and fluctuating interest rates exist, opportunities are available for prepared buyers. By getting pre-approved, working with local experts, and understanding the market trends, you can confidently take the next step toward homeownership.
Ready to buy in Willmar? Start with a conversation. Contact the mortgage experts at Heritage Bank NA today to explore your options and begin your journey.
Chris Vraa
Chris Vraa has been a mortgage industry professional since 1994 and is known for her drive, dedication, and expertise.
Communication is key for Chris when it comes to her customers. When working with Chris, borrowers will know exactly what’s going on from beginning to the end. Chris knows the ins and outs of the industry from her extensive years of experience, which gives her insight that other loan officers may not have.
“MY PASSION IS HELPING PEOPLE MAKE THEIR SITUATION BETTER, NO MATTER THE CIRCUMSTANCES.” – CHRIS VRAA
Chris loves working with everyone, from the first-time home buyer because it’s all new to them and they’re so excited, to the Physician that might be buying a vacation home. Chris will consistently be there and help her customers navigate the waters. Chris is a trusted leader in the field, and she enjoys working with people to grow and thrive throughout their life.







