Median home prices have gone up everywhere but compared with the entire Twin Cities metro area home prices in St. Paul increased by a greater percentage. The median price increased by an average of 7.1% in the metro area and 10.3% for St. Paul.
For the last few months, the number of homes on the market has been slowly rising but demand is so strong that there is less than a two month supply of homes on the market.
We are halfway through 2018 and so far it has been a great year to sell real estate but not such a great year to buy it. In several St. Paul neighborhoods the average sale price in June was higher than the average list price. That means prices in those neighborhoods are still going up. the overall average and median sale prices were also up from May.
The average days on market was around 20 in June. There are some houses that have been on the market for more than 600 days. I mention that because it is possible to overprice a house in any neighborhood.
There are more homes on the market than there have been for the last several months but we are still seeing a severe shortage of homes for sale.
Saint Paul home prices are at an all-time high. The data used to make the table was exported from the NorthstarMLS which is deemed reliable but not guaranteed. I don’t have an exact number but a high percentage of homes sold in St. Paul are listed on the MLS.
The data includes all single family homes and condos and townhouses within the city limits of St. Paul. Sales price data is for the homes that closed during the month of June.
As a homeowner myself I totally understand wanting a high asking price when selling a home but as a real estate agent, I can tell you that asking for more can mean getting less. It seems counter-intuitive but it is true.
A house that was listed for $449 but should have been listed for no more than $380 and would have sold for about $370 in less than three months.
The owners wanted $450,000 for it because that is what they wanted. As a result, it took 2.5 years to sell the home for 10K less than it would have sold for it was priced correctly.
They changed agents three times and reduced the price 8 times and ended up getting about $360,000. This example is extreme but is an example of why and how homeowners can end up with more by asking for less.
The houses that get multiple offers are usually priced just right. They sell faster and generally speaking the highest offers come within the first 10 days a home is on the market.
The local real estate market strongly favors sellers which means it is a good time to sell but even in a seller’s market pricing is important. Deciding on a price is more of an art than a science and there are always agents and sellers who will aim too high.
Gradually and oh so slowly the number of homes on the market in St. Paul is rising. Here are absorption rates for 4 metro counties. The numbers for Dakota county are almost exactly the same as they are for Anoka County.
Absorption rates show how long it will take for all the homes on the market to be sold if buyers continue to purchase them at the current rate. Also, assuming that the supply of houses on the market remains steady. The overall absorption rate for the 7 county metro area is 1.6 months.
Housing supply is the tightest in Ramsey County and the trend line is flat. We are in a very strong seller’s market. In a balanced market that does not favor buyers or sellers, there is a six month supply of houses on the market.
During the housing market crash ten years ago we saw absorption rates at around ten months. That was a strong buyers market. Some of those buyers are today’s sellers.
I get a surprising number of inquiries from people who want to buy bank owned property. During the height of the housing market crash foreclosures were plentiful. They seemed to languish on the market. The people who bought during the crash did get some bargains.
Those days are gone at least for now. The foreclosure rate is still falling and Minnesota has one of the lowest foreclosure rates at .4%.