Mortgage rates hit new low

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.

 

graph of mortgage rates
FreddieMac mortgage rate survey

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.

Double digit growth in home sales

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.”
MN home sales 2020
Minnesota Home sales September 2020

This is a fantastic time to sell a house.

A record breaking September

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.

September Home sales in St. Paul

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.

Home prices went up in Minnesota

Here is an overview of August home sales in Minnesota brought to us by the Minnesota Association of Realtors.

Infor graphic
Minnesota August Home sales

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.

Expect strong homesales in the Twin Cities this Fall

Fall Color
Fall Color – Mounds Park

It isn’t Fall yet. We have a little more than a week left of summer.

In the before times spring used to be the time of year to sell real estate. This year in the real estate market spring is happening in the Fall.

Yes, this is a very good time to sell a house and it is a great time for homebuyers to take advantage of the oh so low-interest rates.

We have gotten pretty good at making the home buying and selling process as safe as we can during the pandemic.

Home sales and pending home sales in St. Paul and in the metro area are up from what they were in August of 2019. Home prices are up as the demand for houses is greater than the supply.

Let us know if we can help you buy or sell real estate this fall.

August 2020 home sales by neighborhood

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.

Chart with home sales
August home sales by St. Paul neighborhood

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.

For more local home sale data see Local market conditions and home prices

If you would like to know how much your home might sell for contact me and I’ll provide a fast free no-obligation estimate. (Also called a CMA)