Eden Prairie Real Estate November 2009 Market Update
I think it is important to update our readers with market stats regarding Eden Prairie Real Estate. These stats are provided to us by the Minneapolis Association of Realtors. This information is compiled from the MN Regional MLS system and is based upon listings and sales to name a few. Understanding the up and down shifts in the housing market are critical to helping buyers and sellers make informed decisions around selling or buying their next home.
New listings in Eden Prairie Homes were down 32% compared to November 2008. Although this is a decrease, it helps sellers as there are fewer properties coming on the market to compete with the current inventory. The year to date numbers are also showing a decrease of 14.6% year to date (2008 vs 2009). I believe some of that is also due to the slowdown that we have seen this fall in the number of foreclosures that banks are releasing to market. Many “experts” believe this will change as we start 2010. This “wave 2″ of the foreclosures may hit Eden Prairie Homes especially hard as it is predicted to be made up of homes in the $200,000 – $400,000 price range as well as the $1m and above range. Both of which Eden Prairie is known for.
Closed sales were flat (0%) year over year and down slightly (-6.4%) year to date. The monthly number tells us that we are closing about the average number of homes we should in November (as compared to last year), but the year to date number shows that there are not as many house closing, overall. This is possibly due to sellers optimistically waiting for a higher price that they should reasonably be selling their home at. A more significant statistic is actually the difference between the new listings and the closed sales (year to date 2008-2009). The new listings year to date are down by 8% more than the closed sales, which means that we are consuming (closed sales) the inventory faster than we are producing it (listings). Only when we get the market at equilibrium will we see prices improve and everyone a little happier!
The next disappointing part is that the media sales prices and average sale prices have both fallen, -27.7% and -11.7% respectively. Although some 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 basis. The year to date stats also show this to be true as both the media sales price and average sales price were -11% year to date at the end of November.
Average days on the market has dramatically shot up 38 days to 168 average days on market until sale. Wow! Homes for sale in Eden Prairie are taking almost 6 months to sell (this does not include 30-60 days to close). I would venture to guess that if you removed foreclosures (which can skew the stats to the short side), this number could be 7-8 months on average.
One glimmer of hope is that the percent of original list price received at sale did tick up year over year for November 2009 by a small, but hopeful amount of 1.3%. Mostly likely this is a result of the frenzy we saw in September and October 2009 as buyers rushed to get their $8000 tax incentive, which ended in November. Many buyers were willing to spend closer to list price to get the Eden Prairie property they wanted in the rush. Year to date, unfortunately is still down -2% over 2008. Year to date in 2009, sellers are accepting (on average), 92.1% of the original list price for their homes.
Lastly, total inventory numbers are down dramatically year over year. Single family detached inventory is down 15.9% and Townhouse-Condo inventory is down a whopping 29.7%. Again, much of this is a by-product of the lower year over year new listings of foreclosures, especially with Eden Prairie Condos. The banks have allowed the inventory to dry up, increasing speed and price at which they sell these properties. If “wave 2″ does hit in 2010, we should see these inventory numbers reverse.
Overall, these stats are consistent with what many of us Eden Prairie Realtors are seeing. If you need help winding your way through the maze of buying or selling your home, I can help.
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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