The number of homes entering the market in St. Louis Park peaked from 2005 – 2008 and has been falling quickly since then. It appears the number of homes entering the market is beginning to level off as 2012 comes to a close.
With fewer homes entering the market there will be less competition among homeowners in St. Louis Park resulting in a shortage of Homes for Sale and rising Home Prices.
Home Sales & Housing Inventory
The number of homes for sale St. Louis Park (Housing Inventory) increased pretty quickly from 2005 to 2007 and since declined. However, Inventory was manipulated by the Homebuyer Tax Credit for a period of time, but resumed it’s natural decent since then and very quickly since the start of 2011.
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 steadily since mid 2011 and still appear to be rising.
Homes for Sale
Days on the Market
The number of Days on the Market for Homes in St. Louis Park reached a peak in 2011. Days on the Market really started to fall quickly at the end of 2011.
Our next chart clues us in to what Market Conditions are in St. Louis Park and who it favors.
- 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 Absorption Rate is trending down at 4.3 Months of Inventory, which is considered a Seller’s Market.
Expectations indicate this trend line is going to continue to decline and the market will get stronger for Sellers.
Median List Price and Median Sale Price typically follow similar patterns, so there isn’t much that it can tell us other than how close to List Price homes are selling for. Currently Homeowners are getting about 90% of their List Price.
So far the Median Sale Price in St. Louis Park has appreciated 4% since 2002, depreciated 17% since 2006 and appreciated 6% since 2011.
With fewer Homes for Sale in St. Louis Park the Median Sale Price should continue to increase as Housing Inventory becomes a premium.