Real estate is local. That doesn’t mean that what is happening in other cities won’t happen here.
Over the weekend there were news stories about the housing market slowing. It was about parts of the country where the rise in home prices has slowed considerably and the number of homes on the market is growing.
Here is St. Paul we have more houses on the market than we had a month ago. Yet if our inventory of homes for sale grew by 300% we would still have a shortage of homes for sale.
We are still seeing multiple offers for more than the asking price especially for homes priced under $250,000.
There is a little evidence that home prices are softening. There have been more price reductions lately.
Housing prices are ridiculous in parts of the country and in parts of St. Paul too. I think increases in home values will start to slow down especially as interest rates slowly rise.
I have seen national headlines that suggest we are in for the biggest slow down ever in the housing market. That sounds ominous yet if you look at how hot the real estate market has been it does seem like something needs to give.
I’ll have some local real estate numbers next week. Here are the numbers for June 2018