Interest Rates For St. Cloud Home Buyers May Not Be That Bad

St. Cloud area Realtor Craig Ehrlichman from Premier Real Estate Services expects home sales to pick up as we approach spring.  He acknowledges the sales have been slow this winter and were slow in 2024.  Ehrlichman believes election years cause uncertainty which leads to a slower market and winter in Minnesota isn't a time many people are looking to move.

Temperatures in the 30s over this coming weekend and low 40s next week could jump start interest in homes.  There has been a shortage of homes on the market in recent years but Ehrlichman explains there are signs of that changing.  Statewide home sales are up 1.5%.  He says sellers are becoming more willing to lower prices.

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High interest rates of 7% have scared many potential home buyers but Ehrlichman indicates many buyers can find lower interest rates on 15-year mortgages.  He says 15-year conventional mortgages have come in at 5.8% with 30-year conventional mortgages at 6.5%.  Ehrlichman says there are programs out there that can be options for buyers that include even lower interest rates.  Other options can include refinancing when interest rates drop.

The average home price in Minnesota is $330,000, Sartell is also $330,000 and St. Cloud is at $260,000.  Craig also discussed suggestions on getting your home ready to sell.  He says home sellers 3 years ago would often set a high price and bring it down if needed.  That strategy isn't as effective now because these sellers receive less activity and often times the home stays on the market longer.

If you'd like to listen to my conversation with Craig Ehrlichman from Premier Real Estate Services, it is available below. Contact Craig@Premierhomesearch.com or call 320-493-1485.