The number of homes entering the market in Chanhassen peaked in 2005 – 2007 and has been trailing down ever since.
With fewer homes entering the market there will be less competition among homeowners in Chanhassen resulting in a shortage of Homes for Sale and rising Home Prices.
Home Sales & Housing Inventory
The number of homes for sale in Chanhassen (Housing Inventory) increased steadily till about 2009 and remained faily level and started to decline very quickly in 2011. Fewer homes entering the market is one contributor to fewer homes for sale.
If Housing Inventory continues to fall this may result in fewer Home Sales, which isn’t necessarily a bad thing since fewer homes for sale will push Home Prices up.
Pending Home Sales and Closed Home Sales follow each other pretty closely in most cases. Closed Sales are usually a month or two behind Pending Home Sales. Home Sales have been rising steadily since 2011.
Homes for Sale
Days on the Market
The number of Days on the Market for Chanhassen Homes reached a peak in 2010 at nearly 160 days and ha since decrease to about 120. Days on the Market is influenced to some degree by Short Sales based on the time it takes a bank to approve a Short Sale. Other factors include the number of Home Buyers in relation to the number of Homes for Sale. With Housing Inventory declining Homebuyers are reacting more quickly to absorb homes for sale.
Our next chart clues us in to what Market Conditions are in Chanhassen.
In any given month a market can favor Buyer’s, Balanced or Seller’s. However, to get a good feel for a market we want to take a look at the trend line.
In this case we can see that the Months of Inventory jumps quite a bit when we look at monthly numbers, which really don’t help us determine what the Market Conditions are, but if we look at the trend line we see that Chanhassen has been transitioning from a Buyer’s Market to a Seller’s Market sine 2010.
The Absorption Rate is trending down at 5.2 Months of Inventory, which is considered a Balanced Market.
- Buyer’s Market = More than 7 Months of Inventory
- Balanced Market = 5 – 7 Months of Inventory
- Seller’s Market = Less than 5 Months of Inventory
Expectations indicate this trend line is going to continue to decline and indicate more favorable conditions for Sellers. It also appears this line may be leveling off some.
Median List Price and Median Sale Price typically follow similar patterns, so there isn’t much that it can tell us other than how close to List Price homes are selling for. In this case Home Sellers were pretty aggressive with their List Price in 2011 only to have to take a major price cut as their homes stayed on the market. With an 80% of List Price received it’s not looking very good for Homeowners.
So far the Median Sale Price in Chanhassen has appreciated 17% since 2002, depreciated 4% since 2006 and has broken even since 2011.
With fewer Homes for Sale in Chanhassen the Median Sale Price should continue to increase as Housing Inventory becomes a premium.