Many items cost less during December and homes usually cost less in December than they do in June. This year prices have been pretty flat when we compare September to October to November but they are at the low for the year and will likely go up slightly next year. The number of homes on the market is fairly small but there are as many homes on the market right how as there were in May of this year. The inventory peaked in August this year.
There are less than 900 homes on the market in St. Paul that do not have offers on them. Traditionally fewer homes go on the market this time of year. Home owners usually prefer to wait until “after the 1st” or until spring. This year the market peaked in August when we reached a high in St. Paul of 1050 homes on the market.
The local housing market is still in recovery. We can’t call it recovered yet because there are people who want to sell but who can not because they owe more money on their homes than they can get for them.
Credit is a little tight which is slowing the housing market a bit when would be homebuyers have trouble getting financing. I think we will see that ease up a bit in 2015 but I also think that interest rates will go up a little.
