There’s another problem: Many of those least expensive listings need considerable repair, making it difficult to finance them. And many buyers simply don’t have the cash to fix them.
David Arbit, director of research for Minnesota Realtors, noted many of the least expensive listings are condos, which are taking longer to sell in part because rising homeowners association fees make them less affordable to cash-strapped buyers.
Of the 763 active listings priced at less than $200,000, 555 of them are condos, Arbit said. But among the 2,149 listings priced from $300,000 to $400,000, only 134 of them are condos.
The move-up market faces a different challenge. Luxury listings are increasing at a double-digit pace, forcing those sellers to offer bigger price discounts than last year.
Still, there have been more upper-bracket home sales than last year, in part because those buyers are less sensitive to increases in mortgage rates.
“Move-up buyers as well as downsizers are better able to navigate this market since they have substantial equity built up,” said Jennifer Livingston, president of the Saint Paul Area Association of Realtors, in a statement.