The numbers are in for August and we are starting to see a seasonal slowdown but by slow down I mean it may take a few more days to sell a house. Multiple offers were common in August and they still are. Sale prices were on average higher than asking prices. Overpriced real estate is slow to get offers.
Low inventories of homes for sale is driving prices up as the strong sellers market continues.
The numbers used to create the tables were extracted from the NorthstarMLS which is deemed reliable but not guaranteed.
I was poking around out MLS looking at some numbers and buyer showings caught my eye. The number of showing a home gets before it gets an
offer is up by 62% in the Twin Cities as compared with last year. The number started to climb at the beginning of the year and has leveled off at slightly more than 11.
Yes, that is right 11 showings. For a few years, the averages have been in the 6 to 8 showings per sale range for a few years. It could mean that there are more buyers looking at fewer listings. The upward curve on the number of showings is pretty steep and it definitely means something.
If your home is in St. Paul the average number of showings has only gone up by 25% or so and is at around 12.5 showings.
The number of in-person tours or showings is the highest during the first five days on the market and then falls sharply if the house is still available.
When selling a house it is a good idea to kind of keep track of home buyer activity in the area to get an idea of how well your house is doing as compared with others.
There are still rumors of a “market shift”. We are seeing a seasonal shift but it isn’t very pronounced. We are still in a strong buyers market with a little more than a month’s supply of houses for sale in most of the metro area with averages for days on market at around 12 days.
Numbers for the month of August will be available soon and I’ll publish them next Tuesday.
The numbers are in and according to Minnesota Realtors, “Demand continued to outpace the available housing supply in July as new listings declined -0.2% and closed sales fell -8.7% compared to 2020. As buyers chased scarce inventory with multiple offers, the median sales price rose +12.5% to $315,000, setting another historic high.”
Here are the numbers for July home sales in St. Paul. I sort them by neighborhood and again average sale prices are higher than the average asking prices. It is all about supply and demand and we have high demand and low supply. The numbers have been pretty consistent and steady this summer.
The housing market strongly favors sellers and that trend is likely to continue or maybe worsen because of the pandemic.
The numbers used to make the table were extracted from the NorthstarMLS and are deemed reliable but not guaranteed. The numbers represent a very high percentage of homes sold in St. Paul.
Apparently, the supply of homes for sale is on the rise in some parts of the country. When I look at actual numbers I don’t see an increase in the Twin Cities Metro area. I am starting to notice that some homeowners are only getting a few offers instead of several but that is probably alright because they can only accept one.
Currently, there is a 1.3 month supply of housing in the metro area. In several counties including Anoka and Dakota, it is more like a one-month supply. The number of all-cash offers is up.
There are people who planned on moving and who really want to move but can not because they are unable to find the right property to buy and even if they find it they will have to compete with several other buyers and some of those buyers are offering cash.
This trend will not last forever but could last for another 5 years or so unless something changes. Current trends did not start during the pandemic or because of it.
Competition for scarce housing stock defined Minnesota’s real estate market in June, pushing the median sales price to a historic high of $325,000, up 18.9% above June 2020. Closed sales rose 12.9% over last year, and a surge of new listings brought 11,908 properties to the market, a 6.5% increase. According to Minnesota Realtors
Keep in mind these numbers are being compared with June 2020. As you may recall there were stay-at-home orders in place at that time and there was civil unrest and there were curfews.
Cash offers are on the rise and the demand for expensive housing is strong. Right now it seems like all housing is expensive. I would build some more if I could.