May home sales by neighborhood

Local home prices and sales remain strong. Median and average home sale prices were down from April. May homes sales are for the most part from April activity. April was a low point for the whole U.S. economy. I predict that June home sales will show a small rise in prices.

Homes for sale generally sell in a few days and often for more than the asking price. The number of homes for sale and the number of new listings and pending sales were up in May from April. The number of homes for sale remains very low while the demand remains high which is a trend we have been seeing for s few years.

table of home sales by neighborhood
May home sales in St. Paul MN

The data used to make the table was extracted from the NorthstarMLS which is deemed reliable but not guaranteed.

Real estate is local. For more local home sale and pricing information please see Local market conditions & home sale prices 

If you would like information about the value of your home and about selling it, contact us.

A quick look at May Home sales

My favorite Hosta

The numbers are not all in yet so I’ll hold off until Monday before publishing my monthly home sales by St. Paul neighborhood report. I just had to take a peak and see what the numbers are going to look like.

Here is what I am seeing. Home supply was actually up in St. Paul but there is still slightly less than a two month supply of homes for sale. Prices were up 7% from April in St. Paul and up an average of 6.5% in the seven-county metro area.

Home sales were down 5% in May in St. Paul and 3% of a percent in the seven-county metro area. Pending home sales are down 7% in St. Paul and an average of 5% for the 7 county metro area.

Home sales are down because there are fewer homes on the market not because people are not buying homes. New listings were down 3 to 5% across the metro area for May.

I think that the level of civil unrest that we have had during the last week of May and the first week of June will also have an impact on home sales.

If you are interested in selling real estate or buying it please contact me for a free no-obligation consultation.

Shift in consumer spending

Last week I watched some of the National Association of Realtors mid-year meetings. One of the presentations I watched was that of  Lawrence Yun, NARS chief economist.

Here is a breakdown in some of the changes in consumer spending during the pandemic.

March spending
Consumer spending

The increased spending on gardening and building materials stands out. I have purchased both in the last few months. I haven’t made many purchases but needed a few things for my business and office that I bought online.

I have spent a lot of time working in the yard this spring. Gardening seems more important than ever and so does the yard. I still have two projects inside the house I hope to complete this spring and both involve paint.

Watching trends is important right now because it is hard to predict what the rest of the year will look like. According to Yun, home sales will be down by an average of 10 to 15% nationwide for 2020. He is also predicting that interest rates will remain low and may even go below the 3% mark and that we will see more home sales in 2021.

Either way, I’ll be here and ready to help because selling real estate is what I do.

Minnesota April housing market

From the Minnesota Association of Realtors

In an economy battered by a global pandemic and locked down by a state-wide Stay at Home directive, the Minnesota real estate market showed surprising resiliency in key areas.

  • Statewide closed sales were up +1.1% in April compared to a year earlier
  • Days on market fell by -12.7% to 48 —less than seven weeks
  • Median Home Prices increased to $275,000, +9.4% higher than 2019
  • Average Sale Price increased by +5.3% to $305,539
  • Sellers received 98.8% of their asking price
  • The Affordability index held steady at 161, the same as the previous year

“All in all, the real estate market held up through the first full month of the governor’s Stay at Home order,” said Chris Galler, CEO of Minnesota Realtors®. He credited the swift action of the state’s real estate community in upgrading their online platforms and adopting virtual open houses and showings.

April 2020 Home sales

New listings were down by almost 26% statewide, which isn’t surprising considering our homes are now our offices and schools and where we stay 26 hours a day.

Home tours involve masks and gloves

These days when we tour homes for sale we wear masks and gloves. I don’t have disposable gloves so I wear winter gloves or I

bleeding heart plant
Bleeding Heart

use small plastic bags. I now have hand sanitizer and I actually saw some in a store when I went for my weekly grocery shopping outing.

I encourage home buyers to only tour homes that they want to buy. Children and parents and others need to be left at home while a maximum of two people tour a house at a time.

We have had buyers make offers without touring the house first. Buyers can make inspection contingent offers and tour the house during the inspection. Home inspectors are working.

There are always people who want to sell because of death or divorce or maybe they have a second home they no longer need. There are snowbirds who are not coming back and have decided to sell their summer homes.

At first, I was afraid to tour homes for sale with my clients but like most people, I need to work to pay the bills. It is fairly easy to work with home buyers without getting too close.

I can understand why fewer homeowners want to put their home on the market right now. They may be working from home and staying at home most of the time. The idea of someone coming into our homes is suddenly frightening.

There are some predictions about home sales in 2020. I don’t think overall home sales will go down much in St. Paul because they are already very low. National wide home sales were down by 8% in March. Home sales may decrease by 15% nationwide in 2020.

I’ll go out on a limb and predict a 3 or 4% decline in St. Paul and Minneapolis and a statewide decline of around 8% for the year.

Unlike the last recession, this one is due to a virus not the crash of the housing market. The strong demand for housing will keep prices from going down.

Wash your hands, wear your mask, keep your distance, and be kind.

Home sales and prices for April 2020

There is a school of thought that homes are going to sell for less during the pandemic. That isn’t the case here in the Metro Area where low supply and high demand continue to drive prices up.

The shortage of homes on the market has gotten worse and there were fewer new listings in April than there were a year ago and a year ago there weren’t enough new listings in April.

Homes are selling much quicker than they were last month, in an average of about 22 days. Overall sale prices are slightly higher than the asking prices. If you own a home in St. Paul chances are your investment continues to appreciate.

I believe there will be fewer home sales in 2020 than there were in 2019 and it will be the 4th year in a row that St. Paul home sales have declined. The decreases are not due to a lack of buyers but because of a lack of homes for sale. With little new construction, I don’t expect a boost in home sales until at least 2025.

table with home sale data for April
April home sales by St. Paul neighborhood

The data used to make the chart was extracted from the NorthstarMLS and gently sorted in an MSExcel Spreadsheet. No numbers were harmed in the process. The data is deemed reliable but not guaranteed. A large percentage of homes sold in the area are sold through the NorthstarMLS.

For more local home sale numbers please see Local Market Conditions & home prices. I have numbers going back to 2005.