Prices are up, everything else is down

table and graph of local home sales
Local market update for February 2018

The report is from the Minnesota Association of Realtors and it shows that in the 7 county metro area new listings and home sales are down. The length of time it takes to sell a house is down. Prices are up. On average sellers got 1.6% more than the asking price in February. That means that prices are rising.

Year to date sellers got an average of 1.4% of the asking price. This shows that prices are still going up.

Some buyers are making offers on houses without looking at them because houses sell so quickly.

Happy house hunting!

For more local real estate numbers please see Local Market Conditions & Home prices

Home sales by neighborhood

February was another record-breaking month as we set a new record for the all-time lowest number of homes on the market. Home prices continue to increase as supply decreases. Home sale prices were close to list prices or higher in some neighborhoods.

The data below is from the NorthstarMLS.

table
St. Paul home sales February 2018

Eventually, there will be more homes on the market but no one knows exactly when that will be. For now, buyers need to watch and wait. There are people who want to sell but they either can not find the right home to buy or are afraid they won’t be able to.

For more local real estate numbers please see:  Local market conditions & home prices. Real estate is local.

Top performing neighborhoods

Home prices were up and then they went down during the great recession. In most cases, home prices have recovered from the great recession and have gone up.

 

Price increases in the last 10 years by neighborhood

Some neighborhoods have experienced more home value appreciation than others over the last ten years. Those same neighborhoods have the lowest priced homes before, after and during the recession.

If you bought a home in the West 7th area in say 2009 or 2011 you should be doing the happy dance because median home prices were below 130K both of those years.

price increases in the last 10 years by neighborhood

The numbers used for the charts are from the Northstar MLS which is deemed reliable but not guaranteed.

New construction in St. Paul

There is very little new construction in St. Paul and prices start at over half a million for a single-family home.

There is always some affordable in-fill type construction where someone buys a lot and builds a house on it. Expect few opportunities and multiple offers.

Some of the new construction is on small lots where small houses used to be. I have seen a few where the house barely fits on the lot and towers over its neighbors.

There are new luxury apartments in St. Paul and some new hotels too. There has been some building going on since the great recession but very little affordable housing.

I don’t want to chase anyone away but in general, the houses in St. Paul are old because St. Paul is old.

If you don’t like old houses and want to new construction that is affordable head on out to the suburbs. For new construction that is priced for less than 250K try Isanti county.

New construction – 600Kish

Historic and current mortgage rates

chart of interest rates
Freddie Mac rates

Mortgage interest rates have been at an all-time low. it is possible that they will go all the way up to 5%, maybe even this year. Back in 2006 during the housing price peak and before the housing market crash and the great recession mortgage rates were over 6.3%. When we look at mortgage rates I think putting them in context helps.

Higher rates are bound to have an impact on the housing market. Here in the metro area, there are so few houses on the market that it will be hard to see the impact.

 

Home sales volume up

chaert
Home sales in St. Paul, MN

The dollar value of homes sold went up in 2017 for the 6th year in a row but the number of homes sold went down, slightly for the first time in three years. I got to thinking about this because there are so few homes for sale but real estate agents are not quitting right and left like they were during the bottom of the housing market crash in 2010 and 2011.

It was tough during the great recession, it seemed like it would never end and yet it did. The vacant lots are a reminder to me.

There is a change in the air this year but right now my crystal ball isn’t working very well. Maybe as we move into spring it will become clearer.

The data used to make the chart was extracted from the MLS and is deemed reliable but not guaranteed.