Housing Market in St. Cloud Has Slowed Down
The winter months tend to be slower when it comes to home sales and this winter is no exception. Craig Erlichman from Premeir Real Estate Services joined me on WJON. He says the days a home is staying on the market has gone up and is now approximately 49 to 50 days. Erlichman says traditionally that isn't too bad.
Erlichman says views on home sale websites give them a good indication of the amount of interest in each property. He says if the property stays on the market longer than expected he and the home owner need to look at why this might be. Possibilities include a condition in the house that isn't being noticed or it could be a price thing.
Erlichman indicates that homes are keeping their value locally. He says we are seeing a little price reduction as opposed to 6 months ago. He goes on to say last year home sellers were seeing 99 to 100 percent of asking price and now the numbers are in the 96 to 97 percent of asking price. Erlichman says they are still seeing some situations where there are multiple bidders on homes. He says the $250,000 to $300,000 range seems to be the "honey hole" where they are seeing the most activity among potential buyers where there can be multiple bidders.
The interest rate has gone up in the past 6 months and Erlichman says that has impacted the market. He says the interest rate had been sitting at 2 to 3 percent, then it jumped to 6 1/2 to 7 percent but is now closer to 5 1/2 to 6 percent. Erlichman says buyers and sellers have adjusted their expectations.
If you'd like to listen to my full conversation with Craig Erlichman it is available below.
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