The number of homes hitting the market in Shakopee peaked in 2008 and as been falling at a steady rate. This can be attributed to home owners giving up on selling their home 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 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.
Home Sales and Housing Inventory
The number of homes for sale in Shakopee (Housing Inventory) increased pretty quickly from 2005 to 2008 and fell nearly as quickly after it peaked. The Homebuyer Tax Credit did slow down the decline in Inventory a little bit, but resumed it’s natural decent 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 fairly flat since 2011.
Homes for Sale
Days on the Market
Housing Market Conditions have changed quite a bit since peaking in 2008 and have been changing even more drastically since 2011. The Absorption Rate is trending down at 4.1 Months of Inventory, which is considered a Seller’s Market. To some degree Market Conditions are comparable to 2005 numbers as Shakopee transitions into a stronger Seller’s 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
So far the Median Sale Price in Shakopee has depreciated 9% since 2002, 28% since 2006 and appreciated 3% since 2011.