This year has been the year for new lows as mortgage interest rates hit new lows for the 10th time. I told a client earlier this year that I didn’t think rates would go below 3%. I am happy to be wrong.
Speaking of records, 2020 has been breaking a lot of long-standing records. Did you know that we hit an all-time high in unemployment in 2020? 14.70 percent in April of 2020.
By all accounts, September 2020 was a record-breaking month for home sales. Median sale prices hit a new high both locally and Nationally.
According to numbers from the Minnesota Realtors Association:
“September numbers reflect an extremely strong housing market with a +22% increase in closed sales, demonstrating the highest year-over-year percentage increase in the past 12 months. Pending activity is also impressive, hitting a peak year-over-year percentage change at +27.7%. New listings were up +6.6%, finally showing an increase after seeing five straight months of year-over-year declines.”
In September home sales prices hit a new high. The median sales price was $249,000. The number of home sales and new listings of homes for sale is about the same as it was last September.
The number of days on the market was about the same as it was in August or a fraction lower. The inventory of homes on the market has gone up but remains at historic lows. Overall St. Paul homeowners got than the list price for their home.
September was a great month for St. Paul’s home sellers. Expect more of the same for October.
The data used to create the table was extracted from the NorthstarMLS. The data is deemed reliable but not guaranteed and it captures a high percentage of all homes sold in St. Paul.
The red numbers in the far right column highlight the neighborhoods where the average sale price was higher than the average asking price. The numbers indicate that home prices are still rising.
Here is an overview of August home sales in Minnesota brought to us by the Minnesota Association of Realtors.
Inventory issues continue to plague first-time homebuyers while competitive pressures have sparked bidding wars. By the end of August, there was only a two-month supply of housing available for sale, which is a historic low.
Here ins St. Paul there is a 1.8 month supply which is the lowest we have seen since December of 2018 when there was. 1.7 month supply. Minneapolis also has a two month supply.
Same old story. Lots of buyers and few sellers. In past decades we were able to build our way out of housing shortages. This time around there is little new construction and what there is is very expensive.
August 2020 was the best month for home sales in St. Paul so far this year. There were more homes on the market than we have seen in a while. We are still in a strong seller’s market with about a 1.8 month supply of houses. Overall sales prices were higher than the listed price but close like they were last August.
The median home sale price in St. Paul was 243K for the month of August.
The number of new listings was way up from prior months and as high as I have seen it for a couple of years but still low.
We are just as likely to see an increase in home sales this fall as we are to see a decrease. If we see an uptick in Coronavirus cases homes sales may slow. The high unemployment rate will start to have an impact as well.
Homes were on the market for an average of 23 days in August. I don’t have any numbers on how many got multiple offers but when sale prices are higher than asking prices it is usually because of multiple offers.
Real estate is local and recent data is more relevant than old news.
The numbers in the table are from the NorthstarMLS which is deemed reliable but not guaranteed. No numbers were harmed. They were gently sorted in MS Excel but never stirred.