Hot. Fast. Furious. Those are the words that come to the top of my mind when I think about St. Louis Park’s real estate market as we head toward the summer season. Homes are selling for top dollar and quickly. Owners of homes in good condition in popular neighborhoods are seeing multiple offers.
Economic experts are giving us several reasons for this almost-overheated market (it’s happening nationwide). Most of them agree, however, that with the recent bump in interest rates, homebuyers that have been sitting on the sidelines are jumping into the game, afraid that rates will inch ever higher.
GREAT News for St. Louis Park Homeowners
The median price of a St. Louis Park home has increased another 3.5 percent over the price at this time last year, to sit at $252,000. Compared to April, May’s median price brings in an extra $7,500.
Homes are selling quicker as well, spending 56 days on the market, on average. That number in April was 83 days.
Only 85 homes sold in St. Louis Park in May. Since 99 sold in April, it’s easy to chalk up the decrease to a tightening inventory. We think that this number is going to show an increase in June’s report, however, since more homeowners are willing to jump into the market in the summer.
The News for St. Louis Park Homebuyers
The news is mixed for folks hoping to buy a home in St. Louis Park. More homes hit the market this May than last ― the new listings figure increased 15.8 percent. The problem is that buyers are entering the market in droves and snatching up the most desirable homes as soon as they’re listed.
This situation has depleted the city’s inventory of available homes. In fact, the supply of inventory has gone down 12.5 percent over last year and we now have only a 2.8 month’s supply of available homes ― a sure sign of a seller’s market.