How Much Have Home Prices Appreciated in Lake Minnetonka

New Listings

Lake Minnetonka, Real Estate, Housing Market, New ListingsThe number of homes hitting the market in Lake Minnetonka peaked in 2007 and as been falling at a steady rate. This can be attributed to home owners giving up on selling their due a very strong Buyer’s Market in years pass and homeowners not wanting to take a loss on their homes. This can also be attributed 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.

Home Sales and Housing Inventory

Lake Minnetonka, Home Sales, Housing Inventory, Real Estate, Housing MarketThe number of homes for sale in Lake Minnetonka (Housing Inventory) increased pretty quickly from 2005 to 2007 and remained pretty flat till about 2011 were inventory started to drop quickly.

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 since 2011.

Houses on Lake Minnetonka

Days on the Market

Lake Minnetonka, Days on the Market, Real Estate, Housing MarketThe number of Days on the Market for Homes in Lake Minnetonka reached a peak in 2009 and has stayed there till about mid 2012 were it finally started to come down.

Market Conditions

Housing Market Conditions have changed quite a bit since peaking in 2008 and have been changing even more drastically since 2010. The Absorption Rate is trending down at 6.6 Months of Inventory, which is considered a Balanced Market. To some degree Market Conditions are comparable to 2006 numbers as Lake Minnetonka transitions from a Buyer’s Market to a Balanced Market.

  • Lake Minnetonka, Real Estate, Housing Market, Market ConditionsBuyer’s Market = More than 7 Months of Inventory
  • Balanced Market = 5 – 7 Months of Inventory
  • Seller’s Market = Less than 5 Months of Inventory

Home Prices

The Median Sale Price in Lake Minnetonka has stayed pretty level since 2009 where the Median List Price has been rising since Summer 2011. As the Median List Price rises we should see the Median Sale Price do the same in the coming months as the Percentage of List Price increases.

Lake Minnetonka, Real Estate, Housing Market, Home Prices

So far the Median Sale Price in Lake Minnetonka has depreciated 2% since 2002, 16% since 2006 and appreciated 3% since 2011.

Lake Minnetonka, Home Prices, Real Estate, Housing Market
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About Eric Hempler

Eric Hempler is a Minnesota Realtor licensed with RE/MAX Advantage Plus and is a member of The Minnesota Real Estate Team. The Minnesota Real Estate Team has sold more homes of any individual or team in Minnesota since 2006. Nearly 1,300 Homes Sold in 2013. Contact Eric at 651-491-3393 or ehempler@tchomeadvisors.com.

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