Street Level View

Every now and then I like to share some observations about the local real estate market.  I call these observations rather than fact because they are based on what I am experiencing each day and what some of my peers in are telling me.

It is harder for buyers to get financing to buy homes.  The requirements are more stringent than they were a year ago.

Prices on homes in the local market continue to decline.  Not at an alarming rate, but declining just the same.

The prices on bank owned homes (foreclosures) are going down, but at the same time banks still are not doing much to sell the properties. They still are not as easy to buy as non-corporate owned homes are.

There are still more sellers in the market than buyers, and offers on homes don't mean what they used to mean.  I don't have any hard numbers but these days when a home goes into the "pending" status becasue it has an offer on it that has been accepted by both parties, it doesn't always close.  When the sales don't close it is usually becasue of a problem with the financing, and or the appraisal.

1729 home sales have closed in St. Paul this year, and 4682, were listed for sale. Of the 1729 that closed this year, 1198 were listed this year. There are currently 2186, single family homes and assorted condo's on the market in St. Paul. The inventory of homes for sale has gone down.

In some price ranges there don't seem to be enough homes on the market. In the neighborhoods where I have the most business my buyers are struggling to find what they want in the 200K to 260K range. I am aware of what is available in that price range, no need to send a note if you are a seller or an agent with such a listing.

According to the Minneapolis board of Realtors there are 20% fewer Realtors in the twin cities.  I don't have any numbers but I suspect there are fewer appraisers, and closers as well.  I know that some of the bigger real estate companies have closed some offices.

As a Realtor I am working harder, and making less money.  Each buyer needs to see more homes and the decision making process is longer, understandable.  It takes longer to sell listings, and is more work than it used to be.  When home prices go down, so do commissions.  Gasoline prices have gone up and so have all of my costs.  Foreclosures take a chunk of my time but do not result in much income.  The challenges are greater and the rewards fewer, but I still enjoy what I do, and plan to continue.