Are Buyers Hitting Pause? Or Just Catching Their Breath?

This past week brought a noticeable slowdown in the Stillwater / St. Croix Valley real estate market, with only 3 properties going under contract. After a strong run through late summer, the pause is hard to miss — and it may be tied to negative economic headlines, market volatility, and general uncertainty that have many buyers choosing to wait on the sidelines.

But here’s what the data says right now:

So even though sales volume was low this week, low inventory is keeping prices stable and sellers in a strong position.

📊 Twin Cities Market Snapshot: 55 Accepted Offers (Sept 1–12)

Across the broader 7-county metro, activity has stayed steady. Data from Home Free TC shows:

🔍 Inspections waived: 15% ↘

🏠 Pre-MLS sales: 7% ↗

💵 15% Cash ↘ • 69% Conventional ↘ • 13% FHA ↗ • 2% VA ↘

📈 Avg. purchase-to-list price: 100.5% ↗

💯 Median purchase-to-list: 100%

💸 Seller help with closing costs: 33% ↗

🛡️ Home warranties: 2% ↘

🏡 Contingent on sale of buyer’s home: 16% ↗

⬆️ Escalation clauses: 4% ↘

📏 Appraisal gap coverage: 11% of financed deals ↘

🚫 Cancellations: 2% ↘

Even with shifting buyer behavior, most homes are still selling at or just above list price. Serious buyers haven’t disappeared — they’re just more selective.

💰 All Eyes on the Fed

A potential Federal Reserve interest rate cut could come this week — and even a small drop could quickly bring more buyers off the sidelines. Lower rates increase affordability and can spark new urgency, especially heading into fall.

📌 What This Means for You

Sellers: Low inventory keeps leverage on your side. Well-presented, strategically priced homes are still selling.

Buyers: This lull could be your window to negotiate before competition ramps up again.

📍 Bottom Line

The Stillwater/St. Croix Valley market is catching its breath — but the fundamentals are strong, and momentum could return quickly if rates drop.

Stay tuned — I’ll continue watching the numbers and keeping you ahead of the curve.

About Richard

Richard McDonough is a top-producing real estate broker in Stillwater & Wasington County Minnesota reaching into Western Wisconsin, specializing in luxury homes, waterfront properties, and distinctive estates throughout the St. Croix Valley With more than 33 years of experience, Richard has built a reputation for integrity, innovation, and results, making him one of the most trusted and recognized Realtors in the region.

As a fourth-generation Stillwater resident, Richard combines deep local roots with global reach through his affiliation with Lakes Sotheby’s International Realty. His expertise spans the area’s most sought-after communities — from Stillwater and Lake Elmo to Woodbury, Afton, Marine on St. Croix, Mahtomedi, Grant, and Dellwood — along with select Wisconsin river towns such as Hudson and Prescott.

Richard is known for delivering a “Luxury Plus” marketing approach that goes beyond traditional real estate services. Every listing receives a personalized strategy with professional staging, high-end photography, drone video tours, and targeted digital campaigns across Google, YouTube, Facebook, and Instagram. His ability to tell each home’s unique story consistently attracts qualified buyers and maximizes value for sellers.

In addition to his track record of selling some of the St. Croix Valley’s most prestigious properties, Richard is deeply engaged in his community. He serves on local nonprofit boards, volunteers for events like Home Town for the Holidays, and is dedicated to supporting the Stillwater area’s vibrancy.

Clients describe Richard as experienced, resourceful, and innovative — a true advocate who handles every detail of the buying and selling process with professionalism and care. Whether helping first-time buyers, seasoned investors, or high-net-worth individuals, Richard’s mission is to make every real estate experience seamless, rewarding, and successful.