Coming from CNBC, it looked to be worth reading: the promise of getting an unqualified, definitive answer to "Which is more affordable— owning or renting?" Getting a straight answer seemed
Why St. Cloud Home Sellers May See a New Reason to List
Dated: April 12 2021
Last week we learned that U.S. housing price increases continued their uninterrupted climb. But at the same time, accounts also included a few rays of sunshine for financially pressed homebuyers.
The nationwide appreciation in real estate values that's been gladdening St. Cloud sellers blipped upward again in February. According to Tuesday's CoreLogic press release, the 1.2% rise over January capped off a 12-month increase: an eye-popping 10.4%!
Figures like those may cheer St. Cloud home sellers—but, as CoreLogic's spokesman put it, it also "is sobering for prospective buyers." The spokesman's advice for ambitious home seekers was scarcely enlightening. Due to the price rises, they should "save more for a down payment, closing costs, and cash reserves."
However, almost as a side note, there was mention of a projection that future St. Cloud homebuyers will hope proves to be accurate. For those daunted by that 12-month 10%+ average price rise, there might be "a possible slowing of price growth on the horizon." In fact, CoreLogic's projected increase was listed at a relatively tame 3.2% by February 2022—a far cry from what they characterized as the "overheated home prices" registered in the year just past.
Several factors might account for expecting the taming of St. Cloud home price increases. Throughout the nation, the shortage of homes being listed is expected to moderate as "severe supply constraints" loosen. If mortgage rates rise as expected, the affordability factor is expected to pare down the number of eligible buyers—a likely formula for dampening buyer competition and the bidding war phenomenon (last week, CNBC described it as "the norm").
Any slowdown in the rate of price gains could well spawn a multiplying effect. One understandable reason for the listing drought has been homeowners' concern about being able to find an affordable home. When St. Cloud homeowners become less intimidated by price escalation, many who had reluctantly refrained from listing may reverse course. Such an increase in listed properties should fire up seller competition—a factor that's been largely absent from U.S. real estate.
St. Cloud is not always in lockstep with broader national trends—which is where I come in. Give me a call for a readout on the latest state of our local market!
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
Little Falls 320-259-4554
Premier Real Estate specializes 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!
Passion for investing in real estate brought me to create Premier Real Estate Services in 2002. Years of purchasing, developing, and managing several rental properties, while assisting friends & cli....
Latest Blog Posts
Predictions by real estate experts make interesting reading, but reality on the ground here in St. Cloud dictates that even the most expert experts lack a key ingredient that would make their
St. Cloud real estate activity may not echo U.S. results month-by-month, but since national media reports impact how individual St. Cloud buyers and sellers gauge their own prospects, they are worth
As 2021 drew to a close, St. Cloud real estate observers sensed a growing expectation in the media that a number of factors were increasingly likely to restrain St. Cloud homebuying activity. Across