Saint Paul Real Estate Market Analysis for May 2008

New listings for homes fell in Saint Paul, Minnesota, during the month of May, according to the Minneapolis Area Association of Realtors’ Market Update for 100 Twin Cities Communities. During May of this year, there were 623 new listings in the City of Saint Paul. Throughout May of 2007, there were 818 new listings, which is a drop of about 23.8%.  St. Paul’s Downtown neighborhood experienced the steepest decline in new listings at -56.3%.  The West Side/Cherokee neighborhood was the only area of St. Paul to experience an increase in new listings compared to last year. 

When looking at Saint Paul’s posted new listing for the 2008 year-to-date, there has been less dramatic decrease by over half.  From January through May, there were 3,138 new listings in the city, compared to 3,455 during the same time period of 2007. That means there are 9.2% fewer new listings for the year. The most drastic changes happened in the Saint Anthony/Midway neighborhoods, where new listings have decreased by 31.1% while the Phalen neighborhood’s new listings increased by 11.9%.

In addition to reduced listings, closed sales on homes in St. Paul, Minnesota, also declined during the month of May. At 258, there were over 8.8% fewer closed sales than May of 2007’s 283.  For the 2008 year from January through May, the view is very different, as just 6.4% fewer homes have been closed on this year. 940 home sales were closed in St. Paul since January of 2008 compared to 1,004 during the same time period last year.

As for sales prices of Saint Paul MN real estate, the downward trend is unfortunately continuing.  The excess amount of homes on the market has caused a decrease in home sale values. The average price of a home sold in the City of St. Paul was $184,935 duing May 2008 compared to $230,672 in 2007. That is a decrease of 19.8%. The average sales price year-to-date in the City of St. Paul is $184,118. During the same time period in 2007, the average sales price of a home was $222,486, a decrease of 17.2%.  Not every neighborhood has experienced a decrease in average sales prices, however.  Some real estate have increased!  St. Paul neighborhoods like West Side/Cherokee and North End/Frogtown areas have experienced extremely steep drops in real estate prices, while Crocus Hill and Southeast seen some increases in average sales price compared to last year.

The percentage of St. Paul homes which sold at their original list price has increased to 89.9%, an increase of over one full percentage point from last month. But last year, 94.9% of the homes sold in May were purchased for their original listing price.

Homes for sale in Saint Paul are staying on the market longer than they did in 2007. In May of 2008, a home in St. Paul was on the market for an average of 129 days before it sold. In May of 2007, homes for sale in Saint Paul were on the market for about 111 days before selling. The amount of time a home spends on the market obviously varies from neighborhood to neighborhood as well. Homes in the Mac-Groveland Saint Paul area in May were selling after an average of 75 days on the market, compared to 2007’s 116.  It’s taking about 4 months or more in some neighborhoods, though.  In West Side/Cherokee, it’s taking a 182 days for a home to sell!  Year to date, homes are taking an average of 146 days to sell, compared to 2007’s 129 days. 

This is a short review of the St. Paul real estate market based on calculations by the Minneapolis Area Association of Realtors for the month of May, 2008. These statistics of course do not reflect all situations. Click here if you’re interested in reading April’s statistics.