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%.
It was a busy weekend for home sales. Right now there are about 25% more homes on the market than there were last month. In this case, 25% is about 100 homes. The inventory of homes for sale is still very low, like around 450. If there were twice as many homes on the market in St. Paul we would still have a scarcity of homes for sale.
The west 7th neighborhood is particularly hot. I put a house on the market on Thursday afternoon and we had two offers by Saturday afternoon and a third offer came in early Sunday morning.
All offers were for more than the asking price and I am still waiting for the for-sale sign.
Buyers are more likely to have a winning offer if they can put at least 5% down and can pay their own closing costs. My advice is to be pre-approved for a home loan and save up money to pay closing costs and for a down payment.
Home sellers who have three bedrooms, two baths and have a home that is free of clutter and in good repair are the most likely to sell quickly with multiple offers. The home also has to be priced right.
Home buyers are finding the process frustrating. It is becoming common to make offers on a few houses before getting an offer accepted. For what it is worth real estate agents also find this frustrating as we go around town writing offers that get rejected.
As a broker, I am required to keep the offers we make or receive that do not get accepted by the other party. I have to say my dead offer file getting bigger and bigger.
More homes on the market should help and there has been a slow climb in the number of homes for sale.
Today I have the numbers for April home sales by neighborhood for the city of St. Paul. The data I have captures most of the sales of single-family residences including townhouses and condos within the city limits.
There were more homes on the market in April than in any other month so far in 2018 which is to be expected. The month of April is often the month with the highest number of new listings and the highest number of sales. It is also the month with the highest prices.
Last year prices went down slightly in May from April numbers and then peaked in June of 2017.
In some neighborhoods, the sale price was higher on average than the asking price which usually indicates prices are rising.
The shortage of homes for sale continues but for the last three months, the number of homes on the market has gone up slightly each month. The average number of days on the market in April was less than 25 days.
I like numbers, they help me make sense out of the housing market. There are some myths out there.
There is no place in the city like Frogtown (Thomas-Dale neighborhood). The median home price is lower than in most of the rest of the city making them more affordable. Homes have also been appreciating faster than homes in other neighborhoods.
The chart shows appreciation in median home value over the last few years of 12.6%. Overall appreciation in St. Paul over that same period was about 10%.
It is Monday which is a great day to publish some local numbers. The inventory of homes for sale remains low but we went up a little. The last time we saw so many houses on the market was last August. Home sales are down slightly from last March mainly because there were more homes on the market last March
Prices were up a little from last month. I highlighted the neighborhoods where the average list price was less than the average sale price because those that is a sign that prices are going up.
In March of 2017 the median home price in St. Paul was $175,000. In March 2018 the median home sale price was $205,000.
Happy House hunting! If you would like to sell your home, call me first. If you would like to know how much your house might sell for please call or write.