St. Paul home sales in 2020

I thought it would be nice to show some home sale numbers for St. Paul for the year. I have sorted the table below by neighborhood. In general, homes are less affordable than they were last year. Median home sale prices are up from 2019 by $10,000 and days on market are down by about 8 days. Homes located in the downtown area took the longest to sell and homes in the Midway neighborhood sold the fastest.

That means it takes less time to sell a house and it will see for more money than in 2019. This is good news for homeowners.

The number of home sales was up from 2019 which was surprising during the pandemic and all. Real estate did better than other sectors of the economy which is probably why we are seeing a surge (I hate that word) of new real estate salespeople.

Right now in St. Paul, we are at what I hope is the yearly low for the number of houses on the market.

People who plan to downsize this year may come out ahead if they can find an affordable house to downsize to.

table of home sales by neighborhood
St. Paul home sales by neighborhood

If you would like to sell your house please call or write for a no-obligation equity analysis . . or to find out how much it might sell for and how to get started.

Home sales by neighborhood

Here are the December 2020 home sale numbers for St. Paul. For the first time in ten months, home sale prices were slightly lower on average than asking prices. In most years home sale prices are slightly lower in December than they are in other months. In other words, there is nothing to see here.

Pending home sales and total closed sales are up from December 2019 and it looks like overall home sales or the year are up around 14% from last year. It should be noted that 2019 home sales were the lowest in 5 years and the number of homes sold in 2020 is the highest for the same 5 years.

In several neighborhoods, on average sellers did get more than the asking price. Median home prices are up 7% from last December. Homes sold quickly even during the holidays and a raging pandemic with an average of 31 days on market, and a median of only 15 days on market.

I’ll have some year-end type numbers next week.

The inventory of homes for sale remains at historic lows. The demand for housing continues to drive up prices. January 2021 promises to be a great month for local home sellers.

chart of home sales by neighborhood
December 2020 home sales

The data used to make the chart was extracted from the NorthstarMLS which is deemed reliable but is not guaranteed. The data includes a high percentage of single-family homes,  condos, and townhouses that were sold within the city limits during the month ending 12/31/2020.

If you would like to know how much your house will sell for and how long it will take to sell please contact me for a no-obligation and always free consultation.

For more local home sales numbers and assorted statistics, please see Local market conditions and home prices

More Realtors in Minnesota

Minnesota Realtors® has seen a 30% year-over-year increase in new members since June 2020, with 73% concentrated in the Twin Cities Metro area. I know I wrote about this a week ago and cited a much smaller number which I will correct once I figure out how I got it wrong.

Many were attracted to real estate sales because of the busy housing market  (14%). For others, it was a layoff that was the reason for the leap into real estate (9%). 61% of the people who joined us had wanted to work in real estate sales and finally moved to it.

As I said last week 51% of the new members are over 50 which is typical. Full time 100% commissioned sales jobs do not attract all that many younger people. There is no health insurance except for what we buy for ourselves.

Most local REALTORS are 1099 independent contractors. I have been self-employed for almost 20 years. It isn’t an easy life but it can be very rewarding.

Real estate agents get better with experience. As they start out they don’t know what it is they don’t know but there is always business for new agents and they gain experience as they work with friends and family. Most new agents get paid as much as experienced agents.

During periods of higher unemployment, we often see an increase in the number of REALTORS. During the housing crash, we saw a decrease and the average age of members went down a bit as members retired.

There will likely be some retirements at the end of the year too. Retirements will show up when members do not renew their membership for 2021.

Regional housing market for November 2020

According to Minnesota Realtors (the state Realtors association):

“In November, closed home sales were up +15.8% versus a year ago, with pending sales demonstrating unseasonably strong growth, climbing +10.6% higher than November 2019. In a sign of continuing high demand, properties spent an average of 38 days on the market (13 fewer days than last year). While buyers aggressively chased scarce inventory, the median sales price went up +13.6% year-over-year to $284,000.”

You may notice that home prices went up in the metro area by 9.8% year over year which is way above the 2 or 3% I was projecting at the beginning of the year.  I didn’t factor in the pandemic, and am not sure what the long term effects of it will be.

November 2020 Home Sales – Minnesota

Even though we are well into December it is still one of the best times to sell a house. The market strongly favors sellers.

 

Minnesota Realtors membership increases

In the last several months Minnesota Realtor membership has gone up. Over half of the new REALTORS are over 50. Some were laid off this year and decided to give real estate sales a try.

Usually, when unemployment goes up we do see an increase in the number of people who get real estate licenses.

Most real estate agents are independent contractors who work on a 100% commission basis.

All Minnesota real estate agents have to work under a broker. Real estate companies have brokers and most are always looking for more agents because agents sell real estate and generate revenue for the company.

Membership in the Minnesota Realtors® association has gone up 3.38% in the last year. There are 21,479 Realtors® in Minnesota.

There are more than enough real estate agents but there is always room for more.

There will be retirements this year too and people who quit. We normally see that at the end of the year when REALTORS pay their dues for the next year.

It will be interesting to see if there are more agents or fewer agents at the beginning of next year. I’ll go out on a limb and predict there will be more agents because there will probably be fewer jobs in other industries due to the pandemic.

New agents often start out at larger companies and then as they gain experience some move to smaller companies or they start their own company like I did.

New real estate agents usually charge the same amount as experienced agents charge.

Experience does matter, that is really all an agent has to sell. People without experience. They can ask for help but often they don’t know what they don’t know.

The best way to get experience is to work with another agent or on a team. When I started I was motivated to learn quickly and worked with an experienced agent as an assistant.

The hardest part of the job for a new agent is finding clients. Finding clients is a big part of the job for experienced agents too.

Also, see:

Getting a Minnesota Real Estate Sales License

What is a real estate broker?

How Many Realtors are there in Minnesota?

REALTORS are often older women

REALTOR isn’t a job title

Spring like housing absorption rates

In St. Paul, we currently have an absorption rate of one month for housing. For the 7 county metro area, there is a 1.7 month supply.

Absorption rate calculates how long it would take for all of the houses currently on the market to be sold if. It is a good indicator of the balance between supply and demand.

In previous years the peaks on the chart occurred in the Winter and the valleys in the summer. The last dip on the chart occurred this past May.

This December we are saying record-breaking year-end absorption rates.  2020 continues to be the best year for home sellers in most parts of the metro.

Buyers can expect higher prices and multiple offers with some good news in the form of interest rates that are at record lows and should remain so for the next couple of years.

chart showing housing absorption rates
absorption rate – housing in the 7 county metro area