When we look at the overall Twin Cities real estate markets it’s a bit of a mixed bag. Narrowed down to just the City of St. Paul, however, the picture becomes clearer.
It appears as if sellers feel they’re in the driver’s seat, which may be true down the line, but not right now. Yes, the inventory of available homes has decreased from September 2013 to September of this year. The number of new listings to hit the St. Paul real estate market during that period went down 6.5 percent.
A shrinking inventory typically signals an impending seller’s market. What happens, though, when buyers leave the market before it turns completely? Closed sales during this same period were down more than 13 percent. So, although fewer sellers are selling, even fewer buyers are buying.
As in most seller’s markets, however, the median sales price of a St. Paul home has increased 4 percent and now sits at $160,000. Although this sounds like good news for sellers, consider the fact that they received only 93.6 percent of their original list price. So the buyers that are in the market are refusing to pay inflated prices for homes.
St. Paul Neighborhoods
St. Paul neighborhoods with the biggest median home price gains are as follows:
- Frogtown (Thomas Dale) saw the largest home price increase in the city. The median home price here increased a whopping 77.3 percent from this time last year and now stands at $101,065.
- Summit Hill home prices increased 69.6 percent from last year to $454,500.
- Dayton’s Bluff, with the median price up 47.8 percent, now has a median home price of $124,900.
- The Downtown neighborhood saw an increase of 44.5 percent in its median home price to $213,000.
The biggest loser is the Summit-University neighborhood where the median home price fell 10.9 percent to $250,000.
It will be interesting to take a look at October’s numbers when they come out in a few weeks. I’ll keep you posted on the latest news from the St. Paul real estate market.
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