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