One clear obstacle to selling your St. Cloud home has been the recent history of growing mortgage interest rates. Back when rates were touching historic lows, even St. Cloud homeowners who’d been perfectly satisfied with their existing loan’s monthly payments found it irresistible to refi them. Why not? The resulting payments were lower, even when the final payoff date remained the same. Then the rates dived even further, and some St. Cloud homeowners profited from refinancing once more.

Then, as the inevitable came to pass, bringing rates more in line with the historic averages, refinancing became a thing of the past. Since the new rate offers would result in a costly cash flow rise, it put the brakes on the refi industry—and also created a new issue.

Suddenly, now the normal progression of a typical household’s housing footprint—expanding the size and quality of the family residence—was more likely to strain household finances. Although the current St. Cloud property’s value had risen astronomically so that selling would result in a sizable profit, so too had the price of the ‘next step up’ house. Beyond that, the higher mortgage rates were bound to create cash flow strains that would not have existed a year earlier.

The result of all of this has been to exacerbate the existing national inventory shortage. More current homeowners are opting to stay put (even if they’d prefer to move). That means that fewer homes are on the market—causing price averages to inch up and buyers to have to continue to compete for the properties that are available.

It’s expected that if and when mortgage rates retreat, more buyers will be encouraged to return. New home builders will be encouraged to increase their output as well. Those rates are determined by a host of surrounding factors—ups and downs that are more of the moving parts that affect our St. Cloud real estate market.

No matter at what point in the resulting mix St. Cloud home sellers and buyers decide to investigate further, hiring the right St. Cloud Realtor^® will assure that the most advantageous current opportunities don’t pass unnoticed. You’re invited to start exploring with a timely phone call to my office!   

Providing a superior level of informed, professional real estate services to buyers and sellers throughout Central Minnesota. We have agents specializing in residential, commercial, multifamily, new construction, existing, investment properties, foreclosures/REO, and short sales with offices located in:

Multiple Office Locations To Serve YOU!

Saint Cloud 320-259-4554

Princeton 320-983-3555

Sartell 320-259-4554

Little Falls 320-259-4554

Minneapolis 763-565-2000

Hutchinson 320-455-9127

Litchfield 320-298-1140

Premier Real Estate specializes in MANY areas around Central MN including Saint Cloud, Waite Park, Rice, Royalton, Sartell, Royalton, Little Falls, Cold Spring, Saint Joseph, Elk River, Monticello, Ramsey, Saint Michael, Andover, Ham Lake, Anoka, Champlin, Buffalo, Glencoe, Brownton, Silver Lake, Kandiyohi, Dassel, Minneapolis, Maple Grove, Saint Louis Park, Saint Paul, Robbinsdale, Crystal, New Hope, Brooklyn Center, Brainerd, Nisswa, Aitkin, Albany, Coon Rapids, Sauk Rapids and more!