Today is Give to the Max day in Minnesota which means you may be able to donate money to your favorite charity and there may be an in-kind matching donation available. Here is the Give to the MAX website.
My favorite charities right now are food shelves. There is a lot of poverty in St. Paul and people, including children, do not always have enough to eat. The need for food really hit home during the pandemic.
2021 was a record-breaking year for home sales. We can expect to see the arrow pointing down when comparing the number of home sales year over year. While home sales went down as compared with last year, days on market went up but seriously 36 days on market is a quick sale. Prices are up by 3.8% from October 2021.
There are more homes for sale and that is a good thing. The inventory of houses for sale will get smaller each month and then increase again in early 2023. Some experts are predicting that sometime between 2023 and 2024 we will go back to having a more normal supply of houses on the market. Most of the time that will mean at least twice as many houses for buyers to choose from.
The graphic is a screenshot from the Minnesota Realtors Association monthly housing report for the state of Minnesota. Real estate is a bit more local than that but the general trends are statewide.
Forecasting the housing market is kind of like predicting the weather. There are unknowns and unforeseeable circumstances that can change everything.
With that in mind:
Housing prices will rise slightly and sales will dip next year before making a comeback in 2024, according to Lawrence Yun, the National Association of Realtors’ chief economist.
That scenario actually makes sense to me. Right now there isn’t any evidence that prices will go down but they are rising much more slowly than they rose during 2021 which was a record-smashing year.
My own prediction for St. Paul is that home prices will rise by 3% give or take half a percent. That is more than the 1% projection for the country but real estate is local. I usually don’t make this type of prediction but I am pretty confident about it.
We will see fewer home sales due to the higher interest rates and possible recession heading into 2023.
As much as we like to have the business I can’t recommend buying a house without a secure job.
As for the projections regarding home sales we need to keep in mind that 2021 was a peak year. There will be fewer home sales in 2022 and 2023 than there were in 2021 which is why we call it a peak year.
If we take that logic further and look to 2024 home sales will be up as compared with 2023 which will likely be an off-peak year for home sales.
There are so many articles about home prices declining yet here in St. Paul and in the Metro area prices are rising. They just are not rising by as much as they did last year. No one is losing money. It takes less than 30 days to sell a house in St. Paul because the demand is still higher than the supply.
I have noticed that houses are getting multiple offers and on average they are selling for more than the asking price but the sale price seems to be getting closer to the asking price. When there are multiple offers it seems like there are fewer in the pile but since the sellers can only accept one offer we do our best to make it work.
Don’t be afraid to buy or sell a house right now if you need to move. It is going to be alright and if it isn’t alright in a distant state or city try not to notice.
If your agent says you have to sell now before prices go down. Your agent might be wrong. Prices will likely rise in the spring barring any unforeseen pandemics or wars or social unrest. Just the same panic selling will rarely work in your favor.
I like the way some of the trees downtown are decorated with both lights and leaves.
You can tell when someone isn’t from around here by the way they pronounce “Wabasha”. The Capital City Bikeway (CCB) is complete along Wabasha street through downtown. Another beautiful bikeway. I don’t often ride in the winter but will try out the bikeway as soon as the weather allows.
It is Friday and Fridays are for fun. I worked at the election on Tuesday from 5;30 AM to 9:00 PM. It was amazing how many people lined up to vote. Many of them were unregistered which is why there was a long line. We registered over 150 voters in a precinct that has just over 2060 voters.
It was busy and exhausting. We registered voters in the morning and in the evening and over the lunch hour too. People voted like crazy. It was thrilling to be a part of it all.
There were times when every booth was occupied and we were handing out clipboards and finding chairs. Young people showed up in droves. I won’t get all political but democracy works when people participate by voting. I feel good about this election and about all of our futures.