I know I should leave the dramatic headlines for the local newspapers but I couldn't resist. During the last few weeks it has been challenging to find homes for my buyers who are in the $240 to $300K price range. I am finding some homes but not many and last night I wrote an offer on one but so did another agent.
The inventory of homes on the market has really gone down. In February of 2007 there were 3071 homes on the market in St. Paul, In February of 2008, there were 3176. I have seen the number go up over 4000. Right now according to our local MLS there are 1771 homes on the market in St. Paul, and less than 100 in the price range I mentioned of those almost half are condos or townhouses and that is not what my clients are looking for. Out of the 57 homes I found in the price range there are less than 20 that fit my buyers criteria in terms of style, number of bedrooms and location.
There is a demand in some neighborhoods for larger homes that have at least three bedrooms, a two car garage and that are in good condition.
The picture is of W.A. Frost & Co located on the corner of Selby Avenue and Western, in the Cathedral Hill neighborhood of St. Paul, MN
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With that kind of significant inventory drop you are likely to see a dramatic rise in average and median sales price. For those who were waiting for the market to hit bottom this might just be the indicating factor.
Hope your Buyer’s are wise enough to make that decision and call you today.
Herb – it looks that way on the surface but it the sellers who have been holding back flood the market with more inventory I am not sure we have the demand to handle it. This whole situation is too unusual for me to feel comfortable making a call or prediction. There are still affordability issues for the first time home buyers and the job numbers don’t look favorable either. 45% of the inventory is foreclosures and many are in rough shape. Interest rates are favorable though.