Prior Lake Home Prices Appreciate 4% in 2012

New Listings

Prior Lake MN, New Listings, Housing Market, Real EstateThe number of homes entering the market in Prior Lake has been steadily rising from 2005 till about 2008 were the number of Home Sellers entering the market started to decline quickly. Since about 2009 the number of homes entering the market has been declining slowly and may be level since late 2012. With fewer homes entering the market there will be less competition among homeowners in Prior Lake resulting in a shortage of Homes for Sale and rising Home Prices.

Home Sales & Housing Inventory

Prior Lake MN, Real Estate, Housing Inventory, Housing Market, Homes for Sale, Home SalesThe number of homes for sale in Prior Lake (Housing Inventory) increased pretty quickly till about Summer 2007 were numbers stayed high till about 2009 were the number of homes for sale tarted to fall quickly till about 2010, leveled off and started to fall in mid 2011. Fewer homes entering the market is one contributor to fewer homes for sale as well as rising Home Sales, which had a steady incline starting in around 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.

Homes for Sale

Days on the Market

Prior Lake MN, Real Estate, Housing Market, Days on the MarketThe number of Days on the Market for Homes in Prior Lake reached a peak in 2009/2010. Days on the Market really started to fall quickly in mid 2012.

Market Conditions 

Our next chart clues us in to what Market Conditions are in Prior Lake.

  • Prior Lake MN, Real Estate, Housing Market, Months of Inventory, Absorption RateBuyer’s Market = More than 7 Months of Inventory
  • Balanced Market = 5 – 7 Months of Inventory
  • Seller’s Market = Less than 5 Months of Inventory

In any given month market conditions can favor just about anyone, which is why we want to look at conditions on a twelve month average to see what the trend is. The Absorption Rate is trending down at 5.1 Months of Inventory, which is considered a Balanced Market. If Inventory continues to fall the market in Prior Lake will favor Sellers.

Home Prices

The Median Sale Price for homes in Prior Lake has depreciated 8% since 2002, 18% since 2006 and appreciated 4% since 2011.

As Inventory continues to decline and the market in Prior Lake continues to favor Sellers Home Prices should continue to appreciate.

Prior Lake MN, 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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