Area Housing Cools, Doghouse Market Tanks

by Alex Stenback on January 12, 2006

Validation from the Pioneer Press today on something we’ve covered for a while here: The housing market locally has been cooling, with total sales, permits, and appreciation rates all having slowed in 2005. From the article:

  • The number of houses, condos and town homes sold in the 13-county metro area last year dropped about 1.6 percent from 2004.
  • The region’s median sales price grew just 6 percent, compared with 8 percent in 2004.
  • New permits issued to build residential buildings dropped nearly 7 percent last year.

To be sure, this is no bubble popping.  What we have is a return to a normal market – a sentiment nicely summarized in this quote from the article, which had us snorting:

"Our max was a couple years ago. We’re calling it kind of back to normal," said K.C. Chermak owner of Pillar Homes in Wayzata and treasurer of the builders association. "There was a while where you could put up a doghouse and the thing would sell."

Unless you are making a killing in doghouse sales, there is nothing to fear.
ยท Area Housing Cooled in ’05 [PiPress]

{ 1 comment… read it below or add one }

Linda Alter January 12, 2006 at 4:58 pm

The county by county chart lists Ramsey County as ahead of last year by 8.59%. I wondered why Ramsey County had above the curve appreciation, and as a local realtor in St. Paul think that the “small town” yet urban feel of St. Paul has made it more appealing than Hennepin and some other counties. Just a possible answer. I think St. Paul has always maintained at or above the 10 county metro appreciation the last few years, so I don’t think it is due to “catch up.” It may be due to higher mdedian sales prices of new construction condos in downtown St. Paul, however, as well. Many factors to consider.

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