Last Weeks Home Sales Storyline Turnaround

Dated: 03/04/2019

Views: 73

 A couple of storylines have dominated national real estate news outlets for more than a year. St. Cloud homeowners who are less industry-focused have been hearing the same thing from the national news media, too. Last week, they both staged a partial about-face.

The storylines are interconnected. The dominant one dealt with the national trend toward a weakening in the number of homes being sold. About a year ago, both new and existing home sales numbers began to falter. This wasn’t enough of a drop to cause genuine consternation—but it was persistent enough to generate headlines.

The reason that potential St. Cloud home buyers and sellers weren’t overly concerned was partially due to the second storyline, which focused on the fact that fewer homes were being offered for sale. That seemed to be a reasonable explanation for the falloff in the number of closings, rather than an underlying loss of public confidence in the value of residential real estate. More evidence was the continued rise in prices paid.

Last week came word that, for the first time in a long while, a change of direction was in the wind. On a month-to-month basis, both trends reversed. According to the press release from the National Association of Realtors®, the Pending Home Sales Index for January registered “a strong rebound”—rising 4.6% above December’s levels.

“Homebuyers are now returning and taking advantage of lower interest rates,” according to the NAR’s Chief Economist. This was noteworthy—for months, Dr. Yun’s pronouncements had sounded considerably less optimistic.

The same release registered the first apparent reversal of the inventory pinch. Gauged by the number of properties tallied nationally by realtor.com, in January, the number of residential properties listed for sale grew by more than 14,000.

Neither of the two turnarounds was gigantic from a statistical point of view, yet they did portend good things to come, at least in the NAR’s view. It’s hard not to agree with that opinion. Incomes are rising faster than home prices in many areas. If mortgage rates hold steady and job creation continues, all trends should combine “to boost home buying.” All in all, these could be enough to nudge undecided St. Cloud homeowners into joining what is traditionally St. Cloud’s most active home sales season. If that’s your inclination, I hope you’ll give me a call!       


Aerial Photo of Buildings and Roads

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:

Five Office Locations To Serve YOU!

St. Cloud 320-259-4554
Princeton 320-983-3555
Maple Grove763-565-2000
Hutchinson 320-455-9127
Litchfield 320-298-1140

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

Blog author image

Noel Johnson

Passion for investing in real estate brought me to create Premier Real Estate Services in 2002. Ten years of purchasing & managing several rental properties, while assisting friends & clients with bot....

Want to Advertise on this Site?

Latest Blog Posts

Do You Use Your Credit Card To Buy Coffee Those Small Charges Can Add Up

Credit cards can be used to buy almost anything, but using them for small purchases can seem like a waste of time when debit cards or cash are more convenient. However, there are both advantages and

Read More

The Treat Ushered In By St Clouds 1st Day Of Spring

 Wednesday is the First Day of Spring—which provides an excellent impetus to dig in and do something that only seems like a tedious chore. In actuality, it can be a sure way to treat

Read More

Learning The ABCs Of FICO

Most people don’t think too much about their FICO scores until they want to get a loan. But no matter the type of loan you want – mortgage, new car, or whatever – the higher your  FICO

Read More

Could St Cloud Homeowner Improvements Deter Buyers

 If St. Cloud homeowners search the web for anything like “surprising things that decrease your home’s value,” they will be answered with literally millions of links. Some of the

Read More