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