Key Updates: According to new data from the Minnesota state and Twin Cities metro REALTOR® Associations, new listings, pending sales, inventory, and prices all rose in March.
Sales activity picked up in March, but like last March, the average list price in St. Paul was slightly higher than the average sale price. The number of days it takes to sell a house went down. Median home sale prices went down slightly from last month. Downtown St. Paul had the most homes on the market, while Highland Park had the highest number of pending sales. To get a feel for which neighborhoods are the hottest right now, compare the number in the homes for sale column with the number in the pended column. If the numbers are close or the pended number is higher than the number of homes for sale, houses are selling quickly.
With 30-year mortgage rates at about 6.6%, pending tariffs on imports, and general political chaos, I am going to go out on a limb and predict slower and fewer home sales this spring.
Real estate is local. The chart was made from data extracted from the NortstarMLS. It is deemed reliable but isn’t guaranteed. The data captures a high number of houses that are bought and sold in St. Paul, but not all of them.
According to Minnesota Realtors, the Minnesota Realtors Association, home buyers and sellers pulled back in February due to uncertainty and higher interest rates. Home prices went up.
“After five months of growth, seller activity slowed in February. New listings fell 7.2% across Minnesota as many homeowners chose to stay put with lower interest rates. Pending sales also declined 7.9%, marking the second straight month of declines. High mortgage rates, low inventory, and broader economic factors pose affordability challenges, shaping buyer and seller decisions.
Housing supply appears to be flattening out after months of growth, with active listings up 1.0% statewide. Even with recent inventory gains, the state would need a 150% increase—more than 16,000 additional properties—to reach a balanced market.
Prices continued to rise, with the median home price up 4.9% to $343,000. Buyers remain focused on monthly mortgage payments, which have risen significantly compared to a few years ago. Despite rising home prices, recent rate declines could lessen monthly payments.”
February Year-Over-Year Summary of Key Market Indicators:
We are seeing a little more activity in the local real estate market. The number of new listings is up and so are prices. This is normal for February. The number of days it takes to sell a house is up slightly month over month.
Mortgage rates are still high at an average of 6.63% (Freddie Mac), but are trending downward. However, they will remain high for the next year. If there is a recession or what I like to call a “Trump Slump” rates may improve. Our economy doesn’t like uncertainty and we have plenty of it with on-again and off-again tariffs and more.
Here are home prices by neighborhood using data from the NorthstarMLS which is deemed reliable but not guaranteed.
For more local numbers please see “Local marketing conditions and home prices“
I had to go take a look for myself because of the news about mortgage interest rates going down, heck they were 7% now they are all the way down to 6.87%! They are indeed going down but only a little so far this year. Rates are sure to stay high this year as inflation has gone up instead of down. Renting may be a more attractive option than owning at this point.
It is a different story for cash buyers. Now is a good time to buy for cash buyers as houses are on the market longer.
From Minnesota Realtors® which is the state Realtor Association.
Sellers listing more homes but mortgage rates still constraining buyer activity. Monthly payments on a median priced home are $2500. I am still predicting a slowish year when it comes to home sales because of affordability. We have to consider monthly payments and not just home prices which are still rising.
Housing statistics as compared with January 2024
January Year-Over-Year Summary of Key Market Indicators: