Saint Paul Market Analysis: May 2008

Similar to the experience of Minneapolis but more dramatic, new listings for homes fell in Saint Paul, Minnesota, during the month of May, according to the Minneapolis Area Association of Realtors’ Market Update for 100 Twin Cities Communities. During May of 2008, there were 623 new listings in the City of Saint Paul. In May of 2007, there were 818 new listings, which is a drop of about 23.8%. St. Paul’s Downtown experienced the greatest decline in new listings at -56.3%. The West Side/Cherokee neighborhood was the only location in St. Paul to experience an increase in new listings over last year. Here is a list of May 2008 new listings in Saint Paul by neighborhood and the percentage of change that has occurred compared to May 2007. (To see a Barker & Hedges article about April 2008 St. Paul Market Activity, please click here.)

Como 41 (-26.8%)
Crocus Hill 50 (-33.3%)
Downtown Saint Paul 21 (-56.3%)
East Side 143 (-14.4%)
Highland Park 55 (-3.5%)
Mac-Groveland 34 (-41.4%)
Merriam Park 20 (-23.1%)
North End/Frogtown 65 (-27.8%)
Phalen 83 (-0.0%)
Southeast 26 (-33.3%)
St. Anthony/Midway 26 (-46.9%)
West 7th 17 (-51.4%)
West Side/Cherokee 39 (+14.7%)

When you look at Saint Paul’s posted new listing for the 2008 year-to-date, there has been less drastic of a decrease by over half. From January through May, there were 3,138 new listings in the city, compared to 3,455 during the same time period of 2007. That means there are just 9.2% fewer new listings so far this year. The most dramatic changes have happened in the Saint Anthonty/Midway neighborhoods, where new listings have decreased by 31.1% while the Phalen neighborhood’s new listings increased by 11.9%. Here is a list of new listings in Saint Paul for the 2008 year to date compared to 2007:

Como 195 (-13.3%)
Crocus Hill 253 (-15.1%)
Downtown Saint Paul 220 (-15.1%)
East Side 678 (+1.0%)
Highland Park 216 (-4.8%)
Mac-Groveland 179 (-17.9%)
Merriam Park 88 (-30.2%)
North End/Frogtown 369 (-9.3%)
Phalen 414 (+11.9%)
Southeast 110 (-23.1%)
St. Anthony/Midway 164 (-31.1%)
West 7th 86 (-27.7%)
West Side/Cherokee 157 (+8.3%)

In addition to reduced listings, closed sales on homes in St. Paul, Minnesota, also declined during the month of May. At 258, there were over 8.8% fewer closed sales than May of 2007’s 283. For the 2008 year overall, the picture is very different, as just 6.4% fewer homes have been closed on this year. 940 home sales were closed in St. Paul from January through May of 2008 compared to 1,004 during the same time period last year.

As for home sales prices in Saint Paul, the downward trend is continuing. The glut of homes on the market has caused a decrease in real estate values. The average sales price of a home in the City of St. Paul was $184,935 in May 2008 compared to $230,672 in 2007. That is a decrease of 19.8%. The average sales price year-to-date in the City of St. Paul is $184,118. During the same time period in 2007, the average sales price of a home was $222,486, a decrease of 17.2%. The percentage of St. Paul homes which sold at their original list price has increased to 89.9%, an increase of over one full percentage point from last month. But last year, 94.9% of the homes sold in May were purchased for their original listing price.

Average prices of homes sold in Saint Paul by neighborhood during May 2008:

Como $203,298 (-8.8%)
Crocus Hill $310,619 (+10.5%)
Downtown Saint Paul $187,331 (-1.8%)
East Side $114,196 (-29.8%)
Highland Park $278,924 (-18.8%)
Mac-Groveland $292,196 (-23.6%)
Merriam Park $310,833 (-16.5%)
North End/Frogtown $66,435 (-46.8%)
Phalen $116,070 (-28.8%)
Southeast $203,015 (+11.1%)
St. Anthony/Midway $211,493 (-0.9%)
West 7th $159,700 (-14.3%)
West Side/Cherokee $78,725 (-69.7%)

As you can see, not every neighborhood has experienced a decrease in average sales prices. Some real estate have increased! St. Paul neighborhoods like West Side/Cherokee and North End/Frogtown areas have experienced extremely steep drops in real estate prices, while Crocus Hill and Southeast seen some increases in average sales price compared to last year.

Homes for sale in Saint Paul are staying on the market longer than they did in 2007. In May of 2008, a home in St. Paul was on the market for an average of 129 days before it was sold. In May of 2007, homes for sale in Saint Paul were on the market for an average of 111 days before selling. The amount of time a home spends on the market varies from neighborhood to neighborhood as well. Homes in the Mac-Groveland Saint Paul area in May were selling after an average of 75 days on the market, compared to 2007’s 116. It’s taking about 4 months or more in some neighborhoods, though. In West Side/Cherokee, it’s taking a 182 days for a home to sell! Year to date, homes are taking an average of 146 days to sell, compared to 2007’s 129 days. Here is the average number of days a home is on the market at the time of sale by St. Paul neighborhood for May of 2008.

Como 109 (+34.8%)
Crocus Hill 191 (+76.9%)
Downtown Saint Paul 78 (-25.6%)
East Side 171 (+47.8%)
Highland Park 89 (-11.1%)
Mac-Groveland 75 (-35.1%)
Merriam Park 83 (-28.5%)
North End/Frogtown 130 (+0.1%)
Phalen 174 (+13.5%)
Southeast 175 (+14.8%)
St. Anthony/Midway 80 (+2.3%) West 7th 117 (+5.1%)
West Side/Cherokee 182 (+127.7%)

This is a brief analysis of the St. Paul real estate market based on calculations by the Minneapolis Area Association of Realtors. These statistics do not reflect all situations. Though much of this information may seem like a downer, much of it a necessary market correction which has been happening for a while. It will take time for the real estate market to stabilize.

Browse homes for sale by Saint Paul Neighborhood:

Battle Creek & Highwood Real Estate
Como/Como Park Real Estate
Downtown Real Estate
Greater East Side Real Estate
Hamline-Midway Real Estate
Highland Park Real Estate
Dayton’s Bluff Real Estate
Payne-Phalen Real Estate
Macalester-Groveland Real Estate
Merriam Park Real Estate
North End Real Estate
St. Anthony/Midway Real Estate
Summit Hill Real Estate
Summit University Real Estate
Thomas-Dale Real Estate
West Side Real Estate
West 7th Real Estate

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