Eden Prairie Real Estate October 2009 Market Update
In October, we continued to see the Eden Prairie Homes market perform strong with buyers working hard to get their $8000 tax credit. Although the credit only applies to first time home buyers, I do believe it made a difference. It allowed many people to take a $8000 tax credit on their income taxes. If the owner lives in the home for 3 years or more, they will not have to repay the credit. It applies to all closings from January 1, 2009 to November 30, 2009. Under the previous $7500 tax credit, it was repayable for 15 years at $500 minumum per year, starting 2 years after the purchase.
New listings, in Eden Prairie houses, were down again for the 3rd month in a row as seller’s are seeing the fall coming, school starting and the true price of their houses, they are choosing to wait to sell their properties until the spring of 2010. We have also seen that banks are not putting as many REOs on the market. This trend has been slowing for most of 2nd half of 2009. This is due to the government bank bailout where the banks in response for taking the money, agreed to postpone foreclosures for a time. That time expired in May. Banks restarted foreclosure filings in June and July, but because of Minnesota’s 6 month redemption period, most of those homes will not hit the market until January or February.
Closed home sales were up 85% in October over October 2008. This is a fantastic jump. While I am not sure this means that we have turned any corner, we are reducing the inventory of properties for sale, which is great for the Eden Prairie real estate market. It helps both existing and new listings coming on the market. The stats show this dip in inventory in both single family detached home inventory which fell almost 14% over October 2008 and townhouse-condo inventory which fell almost 22%.
The jump in closed sales and dip in new listings pushed the average days on market until sale down slightly (2%) to 131 days. While not great, it is an improvement. Unfortunately, in 2009, the market has still added 12 days over 2008.
Median and average sale prices for Eden Prairie houses took another beating in October both dropping around 15% from 1 year ago. Year to date we are also seeing home prices down by 10-11%. It is remarkable that even in a such a desirable area such as Eden Prairie that prices have dropped that much. On the positive note, it is far less than other hard hit areas that have seen their property values drop by as much as 40%.
If you are looking to sell your Eden Prairie Home or looking to buy one, it is best to speak to someone that understand the market and area. Call us today.
I am a licensed Realtor in the State of Minnesota. This website is not a multiple listing service, but each Minnesota & Minneapolis real estate agent is a member of the Regional MLS of MN, inc., a provider of the Minnesota MLS.
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[...] of these price decreases are generated by the abnormally low foreclosure sales, I believe that the Eden Prairie Homes for Sale are simply selling for less than last year and definitely even more than previous years on a median [...]