Everything is wonderful

I am going to predict that the total number of home sales in St. Paul will be slightly lower in 2017 than in 2016. Prices have continued to rise and demand is strong, but the number of homes on the market remains low.

There is little new construction and when there is new construction the homes are large and expensive. What we need are more smaller homes but apparently those are hard to build and sell so that the builder can make a profit.

We have seen an increase in new or newly renovated luxury apartment buildings and some lower rent apartment buildings too. Owning a home isn’t the best option for everyone but neither is renting. In the long run home ownership builds wealth.

As for the wonderfulness of the situation, it is wonderful for people who own rental property.

chart
Home sales and prices

2 Replies to “Everything is wonderful”

  1. Cristy De La Cruz says:

    Bummer that supply is low right now. We are starting to get tired of renting and paying probably the same or more we would on a monthly basis for a mortgage. So would you say it is a seller’s market? Are there multiple offers like there were back in the 90’s or do people actually have time to inspect before they put an offer down, etc?

  2. Teresa Boardman says:

    Yes it is a sellers market but that doesn’t mean you can not buy a home. It just means you have to be ready and act quickly when the right one comes on the market

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