Whether it’s a Wild game, a Saints game, the Winter Carnival, a trip to the Science Museum or Mickey’s hash browns, St. Paul has something for everyone. With a flurry of public and private investments in downtown St. Paul, it’s a good time for a market update on the slightly quieter central business district.
Though some swear that the city “rolls up its sidewalks at 6:00 pm” as residents and workers swiftly flee to their neighborhoods and suburbs, the fact that downtown home sales are at their highest level since August 2007 proves otherwise. In July, preliminary figures show a 30.6 percent increase in unit sales compared to the same rolling 12 month period the year prior. That nudged sales to nearly an eight year record high.
All that demand, combined with limited supply, has pushed the median sales price above 2007 levels but not quite to 2006 or 2008 levels. Also noteworthy is the fact that a downtown St. Paul property will cost you about $100,000 less than it would in Minneapolis. That difference was more like $150,000 in November 2014.
However, a downtown St. Paul condo will only set you back about $2,000 more than condos across the city. Downtown Minneapolis condos cost about $50,000 more than condos throughout the City of Minneapolis.
Absorption rates are significantly tighter (favoring sellers) in Minneapolis versus St. Paul—particularly for condos. Interestingly, condo absorption is faster in downtown Minneapolis than it is in all of Minneapolis; while condo absorption is slower in downtown St. Paul compared to the entire city.