The number of homes entering the market in Forest Lake peaked in 2007 and has been on a steady decline since then. It does appear the number of New Listings may have leveled off since Spring 2012.
With fewer homes entering the market there will be less competition among homeowners in Forest Lake resulting in a shortage of Homes for Sale and rising Home Prices.
Home Sales & Housing Inventory
The number of homes for sale in Forest Lake (Housing Inventory) increased pretty quickly till about the first half of 2008 and started to fall just as quickly after hitting a peak. The Homebuyer Tax Credit may have leveled off Housing Inventory for a time when it was in place, but resumed it’s decline several months after the Tax Credit Expiation. Fewer homes entering the market is one contributor to fewer homes for sale as well as rising Home Sales, which has been pretty flat for the last couple of years.
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.
Our next chart clues us in to what Market Conditions are in Forest Lake.
- 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
In any given month market conditions can favor just about anyone, which is why we want to look at conditions on a twelve month average to see what the trend is. In this case Forest Lake is trending in a Buyer’s Market, similar to 2005 numbers. The Absorption Rate is trending down at 7.4 Months of Inventory, which is considered a Buyer’s Market.
So far The Median Sale Price for homes in Forest Lake has depreciated 22% since 2002, 35% since 2006 and appreciated 4% since 2011.
As Inventory continues to decline and the market in Forest Lake continues to favor Sellers Home Prices should continue to appreciate.