May 2016 Maple Grove Real Estate Update (Sponsored)
Jul 12, 2016 10:35AM ● Published by David Garves, Broker/Realtor with TheMLSonline.com
Maple Grove home owners continue to take advantage of the heavy buyer demand and try to add inventory to the hot housing market.
The following was written and sponsored by Broker/Realtor David Garves along with information provided by Eric Bloomstrand of Bell Mortgage.
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.
The May real estate market remains red hot as the temperature continued to rise, the school year ended and home buyers continued to actively search for their new home.
The biggest problem for most of the market has been lack of inventory in the price ranges that buyers are most actively searching and it will be important to “stock the shelves” during the busy summer months.
Maple Grove home owners continue to take advantage of the heavy buyer demand and tried to add inventory to the hot housing market.
With 231 new home listings in May, we
were up 9.5 percent from the amount new listings during May the previous year. This was the highest new home listings for a
single month since March 2010.
There are currently 303 homes listed in Maple Grove at the time of writing. While this is up slightly from a month earlier (298) and significantly from January’s 10-year low (223), it is still off the May number from a year ago by almost 17 percent (364) and more homes coming to the market are needed.
With 156 home sales during the month of May, the market kept pace with the year prior but was up significantly from the May 2014 number of 124. It was also the third month in a row of either exceeding or keeping pace with the previous years hot market and an indication that heavy buyer demand continues.
The June market produced 174 sales last year, the largest sales volume in three years in Maple Grove. Looking at pending sales, however, shows 186 sales currently under contract and pending close. It will be interesting to see if a new three-year record can be reached for the month of June.
For the second month in a row, the average sales price of a Maple Grove home has showed the effects of the supply/demand numbers we’ve been seeing.
For May 2016, the average sales price of a Maple Grove home sale came in at $306,436, which was up over 8 percent from the previous year and the second highest monthly average number in the last five years.
sales price as determined by “price per square foot” came in strong during the
month of May, rising to $130 per square foot. That’s an increase of more than 5 percent and the highest average price per square foot since June 2008.
Both are good signs that buyers are getting
comfortable with pushing prices up a bit.
According to Eric Bloomstrand from Bell Mortgage (NMLS #274211), home loan rates continue to hover just above all-time lows, which is great for home buyers and homeowners considering a refinance.
The next Federal Open Market Committee meeting is on the light side after a deluge of data to ushered in June.
Remember: Weak economic news normally causes money to flow out of stocks and into bonds, helping bonds and home loan rates improve. In contrast, strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of bond on which home loan rates are based.