January 2016 Real Estate Market Update (Sponsored)
Below is the monthly real estate data for the Maple Grove market as reported using data from the Northstar Multiple Listing Service (MLS). Although the MLS does not entail 100 percent of the market, it does comprise a significant majority. It is the best market data I have available to comprise opinions, statistics, charts, and analyze trends. I believe the information contained herein is an accurate reflection of the Maple Grove market. All data for this report is as of Feb. 9, 2016.
The Maple Grove real estate market started 2016 with a lot of positive information. Supply was mostly flat compared to last years numbers, with demand increasing heading into the new year. Prices didn’t necessarily reflect the supply/demand. We continue to see starter homes fly off the market, but slower moving properties in the top price ranges are having an affect on the average sales price.
Sold Homes (Demand)
Showing some signs of a nice winter so far, January real estate found 68 new home buyers, up about 15 percent from January 2015. It’s an especially impressive number considering the low supply that Maple Grove is seeing (see below).
Pending sales at the end of January, however, show a little less optimistic view of what’s ahead as the 77 pending sales is off about 10 percent from the 2015 numbers.
New Home Listings (Inventory)
With 105 new listings in January, the Maple Grove housing supply was mostly flat (compared to 106 a year ago) - however it did little to ease the housing shortage we’ve been experience for months now.
At only 1.7 months of inventory, the Maple Grove real estate market has slipped below the two month mark for the first time in decades, and actually further back than my data allows me to go.
If you are considering putting your home on the market in 2016, you should be talking to a realtor now and seeing how you can benefit from the drought of inventory.
Housing supply continues to be the most concerning aspect of the real estate market heading into the year 2016. As of the end of January, there were only 1.8 months of supply in the Maple Grove housing market. That’s the amount of time that it would take to sell out of all inventory at the current rate of home purchases. At only 1.8 months, it is below two months for the first time in over 10 years (see chart below). This makes the supply 28 percent lower than the same time period a year ago and down nearly 80 percent from the peak of 8.8 months in June 2008.
While supply and demand numbers suggest that prices should be improving, the Maple Grove real estate market seemingly doesn’t understand basic economics. Starting off the new year, and for six of the last seven months, the average sales price for a sold home in Maple Grove was lower than the previous year.
At $257,199 the average sales price for a January home sale was nearly 5 percent off of the previous years January number. It was up nearly 8 percent, however, from the average sales price of $238,255 two years ago.
A little bit more positive information came from the price per square foot of a home sale moving from $109/square feet a year ago to $114/square feet this year.
When stocks plunge, mortgage backed securities and other bonds usually improve. Because home loan rates are directly tied to mortgage bonds, home loan rates can improve in the process. And right now, home loan rates continue to hover near all-time lows. It will be interesting to see how the rocky start to the market impacts rates.