February 2016 Maple Grove Real Estate Update (Sponsored)
Mar 18, 2016 11:22AM ● Published by David Garves, Broker/Realtor with TheMLSonline.com
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 March 9, 2016.
“LOW MARKET SUPPLY” was all anyone was talking about during the February Maple Grove real estate market. It’s difficult to tell exactly how the low supply has impacted the following numbers as heavy demand isn’t as evident when the supply numbers are at 10-year lows. In order to show the market a little bit more reflective of the low supply, I’ve switched up the charts (above and below).
Sold Homes (Demand)After a January of outperforming the previous year number of home sales, buyers in the Maple Grove home market cooled off a bit finishing the month down from the February 2015 number of 76. The 69 sales however, did blow out the February 2014 number by 15 percent. (see chart above)
Pending sales, however, show March numbers could keep pace with the previous years sales with 93 “pending sales” currently - almost the same number (94) which we had 12 months ago.
It’s hard to say exactly how much effect the low supply number has on the flat to lower sales numbers
New Home Listings (Inventory)
Maple Grove added 132 new homes to the market in February, up from January, but down from 2015’s same month number by nearly eight percent.
While even local TV newscasts and the Star Tribune have begun reporting on the low inventory in the Twin Cities housing market, understanding the actual market requires a deeper look. By breaking down the Maple Grove housing inventory into price categories, we find not every price category is worthy of a front page news story. (see chart below)
Monthly supply of housing is an indicator used to identify a “seller’s market” (anything below four months) or a “buyer’s market” (anything about six months). By breaking the Maple Grove home inventory into price sectors, we can see that while all homes below $325,000 are in a very strong “sellers market”, homes priced above $400,000 see a much more neutral housing market.Also very telling of the $400,000 plus market is while other price points have seen a downward trend for months of supply, the top price range has been increasing year over year. This is an indication while buyer demand is strong, it is less active in the highest price ranges of the Maple Grove real estate market.
Sales PriceAt $288,418, the average sales price for a February home sale was up nearly 12 percent over the January average, but failed to exceed the February 2015 average sales price of $293,308.
With high end, larger home sales moving slower than smaller homes - comparing year-over-year sales becomes a bit skewed. By looking at prices broken down to how much buyers are paying by square foot for a Maple Grove home, we see a different version of how the market has been performing.
Looking at that chart (left) we see that despite average price being off from 2015 numbers, when factoring in square footage we see prices up over the last two years.
According to Eric Bloomstrand from Bell Mortgage (NMLS #274211), home loan rates continue to hover just above all-time lows, which is great for homebuyers and homeowners considering a refinance.
Looking forward, leading indicators show that in February, 242,000 jobs were created - well above the 190,000 expected. Despite this positive news, wage growth is still a concern, falling -0.1 percent from January. Year-over-year wage growth rose a modest 2.2 percent from February 2015 to February 2016.
To contact Eric Bloomstrand, Bell Mortgage Senior Mortgage Loan Officer (NMLS #274211), call/text 612-961-2600 or email firstname.lastname@example.org
To see previous monthly reports on the Maple Grove Real Estate market, check out: MapleGroveRealEstateInfo.com. For any questions regarding the Maple Grove real estate market, contact Broker/Realtor David Garves call/text: 763-221-5834 or email dgarves@TheMLSonline.com.