News is out! There's a shortage of homes for sale in Maple Grove and home owners are responding. The housing market is seeing a wave of new homes being listed that the Maple Grove Real Estate market hasn't seen in years, maybe longer. It's a much needed infusion of homes as the supply in early Spring had some buyers so discouraged at the options that they settled into other communities. But it's important not just to add homes, but to maintain strength and pride of ownership. It's important to look at what homes are coming onto the market (supply), what homes are selling (demand), and how this supply and demand is affecting price.
SUPPLY - 200 New listings hit Maple Grove in May 2013, which accounts for a 37% increase from the 146 new homes listed last year. Supply/Demand economics states that an increase in Supply could weaken a market, however the exact type of supply is important to look at further. Looking closer at these supply numbers shows better signs than at first glance:
- 136 (68%) of the new homes were Single Family homes, up from 91 (62%) last year. There's been a shortage of Single Family homes on the market and Single Family sellers are traditionally owners with a greater interest in their equity as they are more typically move up buyers who may not "need" to sell if they don't receive the right price.
Find out what's happening in Maple Grovefor free with the latest updates from Patch.
- 55 more Traditional Listings compared to May 2012. In May 2013 85% or 170 of the new listings were a result of home owners choosing to put their home on the market. May 2012 only had 79% or 115 of the new listing being traditional sellers.
- 1 fewer bank mediated (short sale & foreclosure) listing compared to 2012, and 11 fewer than May 2011. While there are many reasons and motives for a traditional home seller to list there home (job relocation, hardships, move-up or down sellers, ...) Bank foreclosures sales existed to clear inventory, meaning the price would continue to drop until someone purchased the home. Similarly short sales would typically drop asking prices until they found a buyer to wait out the process. These two types of sales worked together as a leading reason for decreased property values throughout the country. While Maple Grove saw an increase in new listings, a decrease in Bank Mediated sales shows positive signs for the future of our market. < SEE CHART - 10 Years of May Supply>
Find out what's happening in Maple Grovefor free with the latest updates from Patch.
DEMAND - When demand is strong enough that an increase in supply is needed, there's concern that demand wont keeps up. No need to worry yet though Maple Grove. With a 45% increase in home sales, demand has definitely kept up. A deeper look into what's selling is even more exciting:
- An increase of 45 Traditional sales raising % of traditional sales from 71% in 2012 to 82% in May 2013.
- An increase of 38 Single family sales increasing the % of Single Family sales from 62% in May 2012 to 70% this year.
- Even with the 45% increase in total sales, the actual number of homes sold short sale or Foreclosure dropped by 15%.
< See Chart - 10 Years of May Demand >
PRICE - With the increase in demand for non-bank mediated sales and single family homes, the last check on market strength comes in price.
- Maple Grove Real Estate came in strong with a 14% increase in average sales price in May from $256,012 in May 2012, to $293,356 this year.
- The average price per sq foot increased b y 11% from 102.25 in 2012 to 113.84 this year.
Average price per sq. foot is an indication that it's not just larger home sales that are driving the prices up, but actual buyer interest in the Maple Grove market fueling the increase.
It's going to be important to keep an eye on Supply over the next couple months, but with inventory and an all time low - most home buyers are anxiously awaiting the new homes to hit the market and with the number of home sales reaching numbers last seen during the housing boom, it's a good indication Maple Grove home owners should see continued strength in the future.
David J. Garves
www.maplegroverealestateinfo.com
Want to do your own research? Get the latest info @ DO YOUR OWN RESEARCH
