Home sales moderate some, but activity still good

Tim Krohn, The Free Press, Mankato, Minn.
·2 min read

Oct. 25—MANKATO — Home sales fell in August and September locally, while prices continued to rise, but at a slower pace than through much of the year.

But real estate agents say there is still a lot of activity, particularly for homes priced $300,000 or less. And there remains a shortage of home listings, although buyers appear to be a bit more cautious about bidding up home prices.

"Things did plateau when school started. But now I'm seeing some people who were planning on selling next spring who are starting to move them to this fall because of the low (interest) rates," said Jason Beal.

"There's still a lot of interest in homes."

Lynn Gudgeon, president of the Realtors Association of Southern Minnesota and a New Ulm Realtor, said the market has softened some.

"But in New Ulm we've seen a little uptick recently. We've had several listings recently and many are already pending."

In September, 198 homes sold in south-central Minnesota, down 16% from last September, when 236 homes were sold.

The median price of a home in south-central Minnesota continued to rise, hitting $217,435 in September. That's up more than 10% from the same time last year and up nearly 19% compared to two years ago.

August sales locally were 226, down 10% year over year and down nearly 5% from two years ago.

Gudgeon and Beal said the rising home prices have leveled off some.

"In the summer people were making multiple offers, waiving home inspections. It almost felt like a sense of desperation to buy a property. I think that's calmed down. People are not going to overpay, they're more willing to wait," Beal said.

Beal thinks more people who are moving to town are renting and waiting until they find the house they can buy.

"I tell people if you're not committed to Mankato for maybe five years, I wouldn't buy in a high market. But if you're committed to staying here, then buy and enjoy it."

Gudgeon, too, said she's seeing more caution. "There are still buyers out there but they're being a little more particular in what they're looking for. But they will buy if they see what they want."

She said one thing that has no sign of changing is the shortage of home listings.

"I think the supply and demand problem will be with us for a while, into next year. Until builders can build more new homes," she said.

"It's still a sellers market. There's not enough on the market for the buyers who are out there. But as long as the interest rates stay where they're at it's a good time to buy if you find what you want. The rates are fantastic," Gudgeon said.