Local Market Conditions & home prices

Very local market snap shot

House2 It has been in the news that the number of homes sold is up and that more homes have sold this year than last year. I suppose that is a good thing especially for those who have homes to sell and for those of us who sell those homes.

I ran some numbers using the data in our Regional Multiple Listings Service for St. Paul, MN.  The data is deemed reliable but not guaranteed. I looked at total closed sales for 2008 in the city of St. Paul for all types of single family homes, which includes condos and town houses for the first half of the year and compared those numbers to the numbers for the first half of this year.

In the first 6th months of 2008 there were 1071 homes sales in St. Paul, buyers paid an average of $65.37 per square foot. The homes were on the market for an average of 145.6 days.  The total amount of money for those homes adds up to $185,441,972

In the first 6th months of 2009 there were 1372 home sales in St. Paul and buyers paid an average of 117.93 per square foot.  The homes were on the market for an average of 145.6 days and the total amount of money for the sales of those homes adds up to $168,844,322

Foreclosures are the reason for the lower dollar volume. There were times during the first half of this year when 50 to 60% of all sales in St. Paul were foreclosures. The average home has dropped in value in most neighborhoods but not by as much as the homes that were sold after they were bank owned.

Some see the increase in sales as a sign that the housing market is on the rebound. I don't see it that way. I think the numbers mean that a bunch of foreclosures sold because the prices were so low and the tax incentive helped fuel the buying.

The big change between this year and last year is that the inventory of homes on the market was much lower during the first hafl of 2009 than in 2008.

5 comments on “Very local market snap shot
  1. T- It looks like you may have swapped the PPSF numbers between the two sets of data.

  2. Nice discussion. Do you have any thoughts on the availability of loan products and the impact it has on this trend?

    Robert

  3. ST Paul is a great place for real estate. The local market seems to be thriving there.

  4. I agree. At this point, I think most people are so desperate to find a sign that things are getting better that they are willing to grab onto every somewhat positive statistic they can find. It is going to take several months of positive numbers to truly tell us if we are on the road to recovery.

  5. It has never been more true that real estate is a local phenomenon. In San Diego we’ve had a real uptick in sales, with median prices up for five months running. But it is a much different story in California’s inland empire. It is the job of the Realtor to convey local information to local buyers. Well done. Thanks for your post.

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