With fewer homes entering the market there will be less competition among homeowners in Lakeville resulting in a shortage of Homes for Sale and rising Home Prices.
Home Sales & Housing Inventory
The number of homes for sale in Lakeville (Housing Inventory) increased prety quickly from 2005 to 2007 and started to decline slowly since then. However, Inventory was manipulated by the Homebuyer Tax Credit for a period of time, but resumed it’s natural decent since then and quite quickly since thee 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 continue to do so.
Homes for Sale
Days on the Market
The number of Days on the Market for Homes in Lakeville reached a peak in 2009/2010 and another in 201 at about 140 days on the market. Currently Days on the Market is declining as homeowners react more quickly to declining Housing Inventory.
Our next chart clues us in to what Market Conditions are in Lakeville 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 4.2 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.
The Median Sale Price in Lakeville wasn’t manipulated as much as other markets around the Twin Cities. The Median Sale price had a lower peak in 2006 compared to other markets, declined at an overall steady rate and has been rising since 2012 began.
The Median Sale Price in Lakeville has depreciated 6% since 2002, 20% since 2006 and has appreciated 11% in 2012.
With fewer Homes for Sale in Lakeville the Median Sale Price should continue to increase as Housing Inventory becomes a premium.