Business & Tech

Signs of Life in Local Housing Market?

Homes are selling around Lake Minnetonka and staying on the market for shorter lengths.

Mirroring a statewide trend, numbers released last week by the Minneapolis Area Association of Realtors indicate the local housing market may be showing signs of life.

"To sum it up, the good, well-priced homes are selling quickly these days," , a local real estate agent with  in Wayzata, said.

Pending sales in the Minneapolis area jumped nearly 50 percent in June, to about 4,500, and sellers are receiving about 90 percent of their original asking price. Housing affordability also improved.

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"Yes, we are seeing an increase in activity and sales as agents, but it’s very price-range dependent," Cheryl Holds, a local agent with Coldwell Banker Burnet, said. "Anything under $200,000 in good condition are going fast and usually multiple offers with first-time home buyers and investors."

Holds went on to say she is beginning to see, for the first time in five years, what are known as “move up buyers”—people who have equity in their homes, can sell at good prices and take advantage of low interest rates and prices on larger homes.   

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"It’s such a great time to buy," she said.

While the market may have hit bottom or be close to it, new listings, closed sales, median sale prices and price per square foot all continue to fall. Part of the reason these numbers have been down through the first half of 2011 is because a popular tax incentive for new home buyers expired at the end of last year, a factor the Minneapolis Area Association of Realtors says must be weighed when examining statistics.

"One of the things about the Lake Minnetonka area is you have such higher-priced homes on the lake that could be skewing the numbers because they normally have fewer buyers and take a longer time to sell," Holds said. "In this market, it’s even more true."

Click here to view a list of homes currently for sale in the Lake Minnetonka area.

MARKET BY MARKET

Wayzata: The first half of 2011 saw 68 new properties in Wayzata hit the open market, down from 93 through the same period a year ago. The latest numbers give reason for optimism, however. The 10 new listings in June were down by about half year-over-year, but the six sales recorded last month averaged more than $750,000 each—up drastically from $280,000 at this time last summer. Sales of homes edged up from 24 to 27 in the first six months of 2011, and homes currently for sale in Wayzata are on the market for a considerably shorter time than they were through this point last year—185 days compared to 211 in 2010. Wayzata properties are also selling for about 87 percent of their original asking price.

Orono: Similar positive momentum can be found in Orono, where new listings closings and median sale prices are all on the rise. Although new listings in the city of about 7,500 residents are down slightly year-over-year, sales ticked up in June to 21, and sellers are receiving nearly 90 percent of their asking price. Homes in Orono are staying on the market nearly two months less than they were in 2010, and average sale prices have remained steady at about $740,000. 

Deephaven: In the small city of Deephaven, where one or two sales can easily sway the broader numbers, median sale prices have remained steady over the last year. Deephaven saw six closed sales in the first half of this year and 23 year-to-date. At 221 days, properties are staying on the market slightly longer than they were in 2010.

Excelsior: In Excelsior, where closings are up slightly so far this year, median sale price of the 13 properties sold through the first six months of 2011 was $318,000—up more than $50,000 from 2010. Excelsior properties are selling for about 88 percent of their original asking prices and staying on the market for an average of 221 days.

Minnetrista: At 43, sales in Minnetrista have remained steady this year, although new listings are down by about 40 percent. Median sale prices surged from $296,000 to $325,000, although homes are staying on the market for an average of 254 days before they sell.

Mound: Mound saw about 20 fewer new listings in the first half of 2011, and closings have slipped from 87 at this time last year down to 69 as of June 30. Median sale prices fell by 14 percent, and houses are stayed on the market an average of 210 days until they sold—up from 183 during the first half of 2010. Fourteen home sales were recorded in Mound through June, on par with last year’s pace.


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