Saint Paul Market Analysis: March 2008

Similar to the experience of Minneapolis (though not nearly as dramatic), new listings for homes fell in Saint Paul, Minnesota, during the month of March, according to the Minneapolis Area Association of Realtors’ Market Update for 100 Twin Cities Communities. During March of 2008, there were 670 new listings in the City of Saint Paul. In March of 2007, there were 699 new listings, which is a drop of about 4.1%. The Saint Anthony/Mid-way neighborhood experienced the greatest decline in new listings at 40.4%.

There were quite a few neighborhoods which experienced an increase in new listings, however. The East Side, Mac-Groveland, North End/Frogtown, Phalen, and West Side/Cherokee neighborhoods had more homes listed for sale in March of 2008 than in March of 2007. The escalating listings in these neighborhoods account for one aspect of why Saint Paul did not experience the drastic over-all drop encountered by Minneapolis. Here is a list of March 2008 new listings in Saint Paul by neighborhood and the percentage of change that has occurred compared to March 2007.

Como: 45 (-4.3%)
Crocus Hill: 54 (-8.5%)
Downtown: 49 (-29.0%)
East Side: 143 (+8.3%)
Highland Park: 45 (-6.3%)
Mac-Groveland: 42 (+5.0%)
Merriam Park: 25 (-3.8%)
North End/Frogtown: 79 (+12.9%)
Phalen: 84 (+18.3%)
Southeast: 21 (-30.0%)
St. Anthony/Midway: 34 (-40.4%)
West 7th: 18 (-35.7%)
West Side/Cherokee: 30 (+15.4%)

Saint Paul’s posted new listing for the 2008 year-to-date has changed even less drastically. From January through March of 2008, there were 1,834 new listings in the city, compared to 1,831 during the same time period of 2007. That is actually an increase of about 0.2%. The most dramatic changes have been happening in the Merriam Park neighborhood, where new listings have dropped by about 34.2% while the Phalen neighborhood has gained about 23% new listings. Here is a list of new listings in Saint Paul for the 2008 year to date compared to 2007:

Como: 116 (+3.6%)
Crocus Hill: 155 (-7.2%)
Downtown: 165 (+8.6%)
East Side: 368 (+9.5%)
Highland Park: 120 (+2.6%)
Mac-Groveland: 101 (-12.9%)
Merriam Park: 48 (-34.2%)
North End/Frogtown: 220 (+5.8%)
Phalen: 245 (+23.7%)
Southeast: 61 (-21.8%)
St. Anthony/Midway: 93 (-26.2%)
West 7th: 50 (-20.6%)
West Side/Cherokee: 86 (+8.9%)

If you compare these figures to the month of March, even though some areas had fewer new listings, there have still been more homes put up for sale in these areas overall for the year. It will take more months of reduced new listings to balance the excess in available homes for sale in these areas.

Closed sales on homes in Saint Paul, Minnesota, continue to slow as they did in Minneapolis, though as a slightly higher rate. During the month of March 2008, at 169, there were over 12% fewer closed sales than March of 2007’s 192. For the 2008 year overall, the picture is about the same as 11% fewer homes have been closed on. 449 home sales were closed in St. Paul from January through March of 2008 compared to 507 during the same time period last year.

When it comes to price, the downward trend continues in St. Paul as it did in Minneapolis. This is to be expected with the sheer amount of homes that are for sale, driving down the price. The average sales price of a home in the City of St. Paul was $188,742 in March 2008 compared to $214,999 in 2007, a decrease of about 12%. The average sales price cumulative from January through March in the City of Saint is about the same. During that time period in 2007, the average sales price of a home was $217,373, which a little over 14% to $187,927 for 2008. The percentage of St. Paul homes which sold at their original list price has decreased to 87.8% during the month of March, down from 95.6% in 2007.

Average prices of homes sold in St. Paul by neighborhood:

Como: $172,978 (-30.0%)
Crocus Hill: $549,500 (+63.9%)
Downtown: $254,164 (+48.2%)
East Side: $105,268 (-36.7%)
Highland Park: $244,150 (-0.2%)
Mac-Groveland: $262,417 (-16.5%)
Merriam Park: $342,380 (+3.2%)
North End/Frogtown: $66,425 (-47.6%)
Phalen: $87,536 (-53.0%)
Southeast: $207,414 (+6.8%)
St. Anthony/Midway: $229,988 (+19.2%)
West 7th: $132,989 (-20.7%)
West Side/Cherokee: $218,000 (+29.7%)

As with Minneapolis, the decrease in sales price has not been uniform across the board. St. Paul neighborhoods like Downtown, Crocus Hill, and West Side/Cherokee have seen some fairly hefty increases in average sales price compared to last year. Prices in the Downtown neighborhood could be climbing due to higher demand and fewer new listings. In contrast, the affordability of the West Side/Cherokee neighborhood is driving demand for homes, raising the price for which the seller can ask.

Homes for sale in St. Paul are staying on the market longer than they did in 2007. In March of 2007, a home in St. Paul was on the market for an average of 132 days before they were sold. In March of 2008, St. Paul homes were on the market for an average of 156 days. The amount of time a home spends on the market varies from neighborhood to neighborhood as well. Last year, homes in Mac-Groveland were being snapped up after barely two months on the market, but this year it’s taking about 6 months to sell a home. Because of the demand for homes in the West Side/Cherokee neighborhood, the amount of days a home spends on the market has dropped from 206 days to 174 days. Here is the average number of days a home is on the market at the time of sale by St. Paul neighborhood for March of 2008.

Como: 92 (-11.4%)
Crocus Hill: 226 (+55.7%)
Downtown Saint Paul: 148 (+59.3%)
East Side: 157 (+7.2%)
Highland Park: 133 (+40.8%)
Mac-Groveland: 178 (+170.2%)
Merriam Park: 136 (-12.5%)
North End/Frogtown: 218 (+24.2%)
Phalen: 148 (+8.1%)
Southeast: 219 (+11.8%)
St. Anthony/Midway: 111 (-1.8%)
West 7th: 169 (-9.4%)
West Side/Cherokee: 174 (-15.6%)

This is a brief analysis of the St. Paul real estate market based on calculations by the Minneapolis Realtors Association. These statistics do not reflect everyone’s situation. Though much of this information may seem a little depressing, if the decrease in new listings becomes a trend it may help slow the slide of local property values in general.

Browse homes for sale by Saint Paul Neighborhood:

Battle Creek & Highwood
Como/Como Park
Greater East Side
Highland Park
Dayton's Bluff
Merriam Park
North End
St. Anthony/Midway
Summit Hill
Summit University
West Side
West 7th

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