Forming a “T” just north and almost perfectly in between the two core cities lies Falcon Heights. Perhaps best known for the state fairgrounds (how timely!) and the University of Minnesota St. Paul campus, Falcon Heights is also home about 5,500 Twin Citizens—many of whom earn some extra income by renting out their driveways to eager fair-goers (thanks, Daryl).
The median home price in Falcon Heights is about $275,000, which is 7.2 percent higher than the same year-ago period. That’s a bit higher than the $215,000 median home price for the entire Twin Cities region, although the year-over-year change was just about even.
Absorption rates is probably the best way to get a clear picture of the balance between supply and demand. Falcon Heights absorption rates never deteriorated as much as Twin Cities absorption rates, though the city was certainly a buyer’s market for some time. Currently, Falcon Heights has 3.6 months of supply compared to 3.8 months in the broader region. This tells us that sellers in the city have slightly more “pricing power” or “negotiating power” than the typical seller has throughout the metro area.
Though roughly 86.0 percent of sales in the city are single-family properties, townhouse-condo sales are gaining market share. It doesn’t look like much yet, but it’s worth noting that the number of townhouse-condo sales went from 1 to 11 between 2006 and 2013, for an 1,100.0 percent increase. As land prices rise and the overall and student populations both increase—along with other factors including a commitment to sustainability and preservation of open spaces—inner-ring and other suburbs are seeing greater multi-family development pressure.
Ultimately, given its proximity to the Great Minnesota Get-Together, everything that Como has to offer, a UMN campus and other attractions, it’s no wonder overall sales in the city recently reached all-time highs.