St. Cloud Housing Market Shifts As Buyers Gain Negotiating Power

The St. Cloud area housing market is undergoing some changes.  Craig Ehrlichman from Premier Real Estate Services joined me on WJON to highlight the housing market.  He says sellers are realizing about 95% of their asking price but there is some flexibility for buyers.  Ehrlichman says just a few years ago sellers were getting 100% of their asking price and buyers would need to act quickly or lose the chance to buy the home from another buyer.  He says that has changed and it has led to some negotiating of the price.

Interest Rates

Ehrlichman says some buyers are cautious due to the interest rate.  He says the interest rate is right around 6.5%.  Ehrlichman believes buyers should act if that rate fits into their monthly budget.  He says if the rate lowers there will be more demand in the market, prices go up and there would be limited availability to negotiate.  Ehrlichman says if the interest rate drops by 1% it becomes worth it to look into refinancing.  He says lenders would be able to let people know when it is a good time to do that.

Time on the Market

Ehrlichman believes with the amount of listings we have in the St. Cloud area, it's a "healthy market."  He says homes are staying on the market, on average, 45-50 days.  He says the home buying activity is largely coming online but showings are still a great way to move properties.

Cost of Homes in St. Cloud Area

The average home price in Waite Park is $270,000, St. Cloud is at $285,000, Sauk Rapids is at $335,000 and Sartell is at $370,000.  This is based off a standard 3 bedroom, 2 bathrooms, bi-level home with 2,300 to 2,900 square footage.  Ehrlichman says home prices in the area have largely stabilized with 2-3% growth every year.

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