Property Tax Decreases and Deferrals

This is a first for me as a homeowner. The notice states that Ramsey County is not raising property taxes in 2021 because of the pandemic. According to the county property taxes makeup 44% of the budget.

There were also small tax decreases from some city departments and from the regional rail authority. The end result for my household is a 9% decrease in property taxes.

There is also a deferred property tax program for seniors being offered by the state. The program caps property tax payments at 3% of the household income for people who are over 65, make less than $60,000 a year, and have lived in the home for at least 15 years.

The property taxes are deferred until the homeowner dies or the property is sold or if the homeowner withdraws from the program or if the property is no longer homestead.  More information about the Senior Citizen Property Tax Deferral Program.

coins
spare change – the picture was taken during the before time when coins were abundant.

Spring is either early or late

According to the Minnesota Realtors Association:

“October closed sales surged +29.8% to 10,290 homes sold versus a year ago. This is slightly lower than July’s historic peak (10,495 homes sold) and higher than any month in 2019. Pending sales also showed strong growth, up +22.4% over last October as consumers purchased properties at levels typically seen in the spring. Nearly every region in the state showed double-digit growth in closed sales.”

Nationally existing home sales were up 26.6% annually. There was also an 18.9% drop in the number of homes on the market nationally when compared with 2019.

October 2020 was indeed a good month for Minnesota home sellers. Conditions were closer to what we usually see in the Spring.  Currently in St. Paul on average homes are on the market for 23 days. Sales prices are on average higher than asking prices.

October home sales
October home sales Minnesota

Home sales by neighborhood

Normally this time of year the number of home sales start to go down. October home sales were up 6% from September and up more than 25% from October 2019. The median home sale price in St. Paul was 24o,000 in October up from $219,000 in October of 2019.

We continue to see a strong seller’s market with a two month supply of homes for sale.  On average home sale prices are higher than the asking price which means prices are still going up. It is a great time to sell a house and takes on average 22.7 days.

In downtown St. Paul we are starting to see a buyers market with a ten-month supply of condos for sale. The downtown condo market has been more of a balanced market between buyers and sellers for the past several months.

chart of home sales
October 2020 home sales St. Paul, MN

If you are interested in selling your home give us a call or send us an email for a free no-obligation consultation.

The numbers used to make the chart above were extracted from the NorthstarMLS and are deemed reliable but not guaranteed. For more local real estate numbers please see Local Market Conditions and Home Prices I have data going back to 2005.

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.