• Local Market Conditions & home prices
  • Mortgage rates were not as fair a decade ago

    state fair

    This is from a post I wrote on the first day of the Minnesota state fair 10 years ago.

    Mortgage Rates – Freddie Mac Primary Market Survey – average rates for 30 year, conforming, fixed rate mortgages:

    week ending 8/24/2006 6.48%

    week ending 8/17/2006 6.52%
    week ending 8/10/2006 6.55%
    week ending 8/03/2006 6.63%
    week ending 7/27/2006 6.72%
    week ending 7/20/2006 6.80%

    According to Freddie Mac Average rates this week look like this:

    Average rate for a 30 year conforming loan is 3.43%

    Houses in St. Paul are still on average less expensive than they were in 2006 and interest rates are lower.

    Today is the first day of the Minnesota State Fair. Enjoy!


  • Local Market Conditions & home prices
  • Asking price Vs. Sale price



    Sometimes how buyers ask me for averages of list price Vs. sale price and use it as a guide for making an offer. Having some averages of list prices Vs. sale prices is useful but some homes are overpriced and some are underpriced and a few are priced just right. On average home sellers will get less than their asking price but pricing a home higher does not necessarily result in a higher sale price and can result in a lower sale price. The sellers best chance to get the maximum amount of money for their home is with-in the first two weeks it is on the market.

    The data used to make the chart was extracted from the NorthstarMLS which is deemed reliable but not guaranteed. A very high percentage of the homes that are sold in St. Paul each year are listed in the NorthstarMLS.

  • Local Market Conditions & home prices
  • The hot neighborhood graph

    chart of days on market

    I am not sure how to measure neighborhood hotness but it is a thing. People want to know which is the hottest, best or most desirable neighborhood.  There really isn’t such a thing as a best neighborhood but there is supply and demand. The chart I made has the average cumulative days on market (how long it takes to sell a house)

    Homes sell the fastest, followed by Summit Hill and Frog town comes in third place.

    Cumulative days on market represents how many days a home was on the market during the year. If the home is put on the market and then taken off and then put back on cumulative days counts all of the days.

  • Local Market Conditions & home prices
  • July Home sales by neighborhood

    home sales July 2016 - St. Paul, MN

    Here are the numbers for July home sales. Median home values dropped slightly from what might have been the peak for the year in June of $190,900. We don’t know how much a home sold for until it closes and these days it takes 45 days or more from offer to close. The number of homes on the market has gone up slightly but is still low which is causing a market that favors sellers.

    The chart below represents closed sales during the month of July and includes all single family homes and condos/townhouses sold within the city limits of St. Paul.

    The data used to make the table was extracted from the NorthstarMLS and is deemed reliable but not guaranteed and as near as I can figure represents a very high percentage of home sales but not all of the home sales in St. Paul.

    For more numbers like these and we go back a decade of so please check the Local Market Conditions and home prices category.

  • Local Market Conditions & home prices
  • Home sales still spring like

    2016 will be the year of perpetual spring when it comes to measuring home sales. We currently have an absorption rate for homes for sale of 2.6 months. The absorption rate measures how long it would take to sell all of the homes currently on the market in St. Paul at the current rate of home sales without adding any new listings.  A six month absorption rate is considered a balanced market. The market is not balanced, it is a sellers market.

    Absorption rates for housing in St. Paul
    Absorption rates for housing in St. Paul

    Yes this is a great time to put your home on the markt.