The number of homes hitting the market in Edina peaked in 2006/2007 and as been falling ever since. This can be attributed to home owners giving up on selling their home due a very strong Buyer’s Market in years past and homeowners not wanting to take a loss on their homes. This can also be attributed to fewer homeowners having to short sale their home and fewer foreclosed homes entering the market.
As fewer homes enter the market there will be less competition among homeowners resulting in fewer homes for sale and moving closer to a Seller’s Market. Since 2011the number of New Listings has been pretty flat.
Home Sales and Housing Inventory
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 due to the difference from date of acceptance and date of closing. Home Sales have been rising quickly since the start of 2012.
Homes for Sale
Days on the Market
The number of Days on the Market for Homes in Edina reached a peak in 20010 and remained elevated till about 2012. Days on the Market will continue to fall as Inventory shrinks and buyers are forced to respond more quickly to purchase a home.
Housing Market Conditions have changed quite a bit since peaking in 2009 and have been changing even more drastically since about mid 2011. The Absorption Rate is trending down at 5.8 Months of Inventory, which is considered a Balanced Market. To some degree Market Conditions are comparable to 2005/2006 numbers as Edina transitions from a Balanced Market to a Seller’s Market. At the rate Market Conditions are changing in Edina a Seller’s Market could appear in Spring 2013.
- 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
So far the Median Sale Price in Edina has appreciated 16% since 2002, depreciated 12% since 2006 and for the most part has stayed even with 2011.
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