Here’s How COVID Has Changed the St Cloud Housing Market
Whether you are a first-time buyer or looking for something different, many homes in the St. Cloud area are getting scooped up faster than the mortgage rates have been dropping.
If you've been looking to buy a house during the COVID pandemic, you know it has not been easy. Especially if you're looking in a specific price range or with some acreage and/or a lake view. I know, because I just bought a house and I saw how crazy things are.
Naturally, I was curious about the whole thing. So I decided to ask our agent Nora, some questions about the current real estate market and what her professional opinion was.
Low inventory is creating a seller's market with higher list prices than we typically see in a Spring market. The lockdown experience has created a need among individuals and families to change their current living style which has increased real estate transactions. - Nora Job / Beyond Real Estate Group at Edina Realty
I noticed homes in the $220,000 to $280,000 price range were going quickly. Especially if they had extensive square footage and a decent lot size (and if the home had that "character" to it). The average price for a home in St Cloud is $280,000. So I asked Nora what the most popular price range for houses is in the area?
In my experience, the most popular price range of homes in the St Cloud area falls into 2 categories...
1. First time home buyers $180K - $220K
2. Upsizing or downsizing home $200K - $300K
- Nora Job
What's Out There?
Not as much as in previous years. The number of home listings is down 18% from last year. One of the main reasons is the coronavirus pandemic.
People are naturally unsure of what's going to happen with the coronavirus pandemic and with the housing market. For some, it's best to just stay put and see what happens.
But for others, the current situation we find ourselves in is precisely why they're looking to upgrade or buy for the first time. There's a couple of reasons for that.
The cost of renting has been going up in the St Cloud area, and when that happens, you typically start to see a shift to home buying. Why rent when you can own? Why pay $1300+ to rent an apartment when you can own a home for the same (or less)?
New Normal = Change
People are adjusting to what very well could be the new normal. Most of us realize that one outcome from having to change our lives so dramatically is that what WAS normal will not be normal again -- from working at home to learning at home. So with the house becoming a new office and school, people want space -- both in square footage and land.
Is the market cooling down or heating up? Based on the activity I am experiencing it is still heating up with acreage and lake shore properties the highest in demand and with the lowest inventory. These properties are always in multiple offers and usually sell for over listing price. - Nora Job
It's a snooze you lose market right now. I saw a house go on the market a couple of months ago. They had an open house over the weekend. It was off the market that Monday. So my advice is to anyone looking for a new home right now is this:
- Be active. Always be checking to see what has just popped up. If you like it, check to see how soon you can see it. If you want it even more after that, don't wait too long to make an offer (but don't rush it, of course. I know, it's a tricky thing).
- Get an agent who will keep you up to date with everything.
- Don't make an offer if it doesn't feel right. There is nothing worse than regretting a home you bought. Having a home is fantastic, but don't buy just to buy. Regretting a home purchase is worse than not getting that perfect one.
Check back later for more information on the St Cloud housing market. I'll let you know what the future might possibly hold for future home sales.