The Biggest Change to Stillwater Real Estate in the Last Year

by Laurie Dick

As we enter spring of 2023, it is time to take a closer look at the Stillwater MN housing market from the last year. One of the most significant takeaways from the market is that we are still facing low active listings, but the situation has almost remained the same year over year.

Despite this, the average sale price of homes in Stillwater has increased by $10,000, from $490,000 to $500,000, showcasing steady growth in the housing market. It is worth noting, however, that the rate of home price appreciation has slowed down in recent months.

One of the most notable changes in the market is the shift in the length of time it takes to sell a home. In the past year, homes that once flew off the market are now taking an average of almost a month to sell. This slowdown has led to a more balanced market, with inventory moving from 2 months to 4 months. Thus allowing potential buyers to have a clearer picture of available inventory and pricing.

Another key trend is the growing popularity of luxury homes locally. Luxury homes have fared particularly well in Stillwater, with larger size homes and unique properties seeing better market performance. Furthermore, this pattern has only become more apparent in recent months, with more sellers seeking to capitalize on the trend by investing in renovations, updating home aesthetics, and increasing curb appeal.

However, the trend of luxury homes is moving beyond the aesthetic and into the functional. Individuals are prioritizing their homes as a place where they can work remotely and spend more time with their families, leading to an increased desire for larger homes that offer more space for working and living.

Finally, as a result of the pandemic, many homeowners have sought to cut costs and reduce their mortgage payments. The impact of the pandemic can be seen as many individuals looking to sell their homes eventually purchased a new one, downsized, or opted to rent instead of paying property taxes and mortgages.

The Stillwater housing market from March 2022 to March 2023 has shown a steadiness in average sale prices and an evolution in real estate preferences. Although we continue to face low inventory, its impact has resulted in a more balanced market with an increased interest in luxury homes and larger-footprint homes that cater to modern needs. As the spring season continues, it will be interesting to see the market's response to emerging trends in real estate preferences and the economy at large.