St. Cloud Area Homes Taking Longer To Sell As Market Shifts Toward Buyers

Homes for sale in the St. Cloud metro area are staying on the market longer.  That according to Craig Ehrlichman from Premier Real Estate Services.  He says homes staying on the market 60-70 days is a "normal" real estate market even if it doesn't feel that way.  Homes in recent years were staying on the market less that 60 days but that has changed.

Home Buyer Flexibility

Ehrlichman believes homes staying on the market longer isn't necessary a bad thing.  He says it allows the buyer the flexibility look at home options, and negotiate off the price.  He says sellers are getting approximately 96% of their asking price but he is seeing more price reductions than what they've seen in the past.  Ehrlichman says 3 reasons why homes may see a price reduction is condition, price and/or location.  He says pricing the home correctly can generate the most excitement for the home in the first few weeks of the listing.

Home Values

Home values are holding fairly steady, according to Ehrlichman.  He says home prices compared to a year ago are similar but there is some appreciation on property as he expects to see 3-5% appreciation year to year.

Interest Rates

Ehrlichman says interest rates were so low for so long and now they are in the 6.5% range.  He believes many buyers were waiting on the sidelines for the rates to come down.  Ehrlichman says in 1971 interest rates were at 7.1% and many people were waiting for the rates to come down.  He says rates didn't come down until 1993.  Ehrlichman says the average interest rate between 1975 and today is 7.5%.

St. Cloud area cities pricing breakdown

Average prices throughout the St. Cloud metro area range from $284,000 in Waite Park, $290,000 - $300,000 in St. Cloud, $350,000 in Sauk Rapids and and $360,000 to $365,000 in Sartell.  Ehrlichman says prices are higher in some locations based on demand.

If you'd like to listen to my conversation with Craig Ehrlichman, click below.