Home sales and prices by neighborhood

home sales
Home sales by neighborhood

Numbers are a great way to start the week. This is the first full work week of 2018. We hit a new low for the number of homes on the market and the number of new listings in December was also low.

The number of home sales was low because it was December and because there weren’t many houses on the market. Home prices were up from November and slightly higher than October but lower than September.

This isn’t a healthy real estate market. It is a strong seller’s market. Home prices continue to climb much faster than wages.

The data used to make the table was extracted from the NorthstarMLS which is considered accurate but not guaranteed.

For more local real estate numbers please see Local market conditions and home prices.

If you have a home that needs selling, call now.

Average and median home sale prices

I like to start the year by looking at data. Based on the numbers I have seen so far unless something changes, this year will be like last year. Like last year but with fewer home sales. Sales will fall off from 2017 because there are fewer home sellers. Buyers will need to watch the market and be ready to pounce when the right house comes on the market.

The average and median home prices have been rising. This is good news for homeowners who are not planning on buying. Average rents have been rising in St. Paul. The monthly cost of owning a home can be less than renting one. On a side by side comparison of renting Vs. owning a particular home, owning is going to cost less than renting.


Average & median home prices – St. Paul, MN

Record breaking new low

Graph by year homes for sale
Homes for sale in the Twin Cities

This isn’t the first time I have written about a record-breaking low number of homes listed for sale. In St Paul, there are only 243 homes on the market that do not have offers on them. The data in the graph comes from the Northstar MLS which is deemed reliable but not guaranteed. Buyer demand remains high and on average homes are selling quickly.

We are in a strong seller’s market. It isn’t a healthy market and has been out of balance for the last several years.

Ten years ago today!

This is a post from January 2nd, 2008. We have all learned much since then. Most of us never believed home prices would go down and that it would take a decade for them to go back up to what they were.

Sometimes I wish I could warn my past self of what is to come. I’ll have some December 2017 numbers later in the week.

The chart above is for sale prices of homes in the city of St. Paul over the past ten years.  The data is from the MLS which is deemed reliable but not guaranteed.   The table below shows the actual numbers.

The average home sale price in St. Paul for 2017 was $231,924, slightly above the average of 230,148 for 2006 which is when home prices peaked in St. Paul Minnesota.
For more information about local real estate prices please see:

Local Market Conditions & home prices

Real estate and the new tax law

The new tax law rules which were signed into law last week has some important changes for homeowners. Mortgage interest will still be tax deductible but only on mortgages up to 750K.  Property and state taxes will see be deductible but only up to 10,000 dollars worth.

The standard deductions have been raised. Which means that fewer people will want to itemize and get the deductions because they will pay less in taxes by taking the standard deduction. The standard deduction for 2018 has almost doubled from 2017 to $12,200 for single filers and $24,400 for joint filers.

The deductibility of capital gains on the sale of a primary residence has been left in place. Taxpayers will still be able to exclude up to $500,000 (or $250,000 for single filers) from capital gains when they sell their primary home, as long as they’ve lived there for two of the past five years.

It is hard to tell at this point what kind of an impact any of this will have on the local real estate market where people generally do not need 750K mortgages. People with the combination or high property taxes and high state income taxes may want to look for some new tax deductions.

Right now home sales are strong and even record-breaking. Home values continue to climb as the number of homes on the market remains low. Homeownership rates are about 5% below the peak of 77.3% in 2002 and are climbing.



How many houses are on the market?

Thanks for asking. 317 is the number of houses and condos on the market in St. Paul that do not currently have offers on them.  317 might be a new low. If there were twice as many homes for sale that would still be low number, even for December.

There are also 58 homes that are for sale but are ‘Temporarily not available to show”.  Watch for them to come back on the market next week.

The shortage of homes for sale continues, which isn’t news anymore. The demand for houses remains strong and they sell quickly.

If you plan on selling your home this winter you don’t need to have it “pre-listed” to “build excitement”. There are plenty of home buyers excited about the idea of buying a home.

Some of the forecasts and predictions for 2018 suggest that the shortage of houses for sale will ease up a bit. Real estate is local, I’ll be watching the market closely for signs of change. The market has been steady and stable for the past three years but out of balance and in favor of sellers.

Winter skating downtown St. Paul