2016 Second Quarter Report - Maple Grove Real Estate (Sponsored)
Jul 29, 2016 06:33PM
● By David Garves, Broker/Realtor with TheMLSonline.com
Single family sales have accounted for just under 60 percent of all Maple Grove home sales through the first two quarters in 2016.
The following was written and sponsored by Broker/Realtor David Garves
Second Quarter 2016 - What Really Matters in Real Estate
Maple Grove homeowners have seen fantastic growth through the first half of 2016!
New home listings are are down -3.8 percent (1,051 through second quarter compared to 1,093 in second quarter 2015)
Home sales are up 3.6 percent (728 through second quarter compared to 703 in second quarter 2015)
Median home sales price is up 3.3 percent ($255,000 through second quarter compared to $246,900 in second quarter 2015)
To get even deeper into the data though, it’s sometimes worth a look to see how the real estate market is looking in Maple Grove at a deeper level. All data below compares the first 6 months of the calendar year (January-June).
By Type of Home
2016 Q2 Sales Price by Type of Home
Second Quarter Sales by Type of Home
Single Family Sales
Single family sales have accounted for just under 60 percent of all Maple Grove home sales through the first two quarters in 2016. This percentage is consistent with the same time period over the previous two years (62 percent and 59 percent). At a median sales price of $315,500, prices of single family homes have improved at a very healthy 3 percent over both of the last two years. This gives comfort to those concerned about prices moving too quickly as three to fourth percent is a very healthy number for real estate value growth.
Town home/condo sales, while still considerably fewer than single family, have consistently accounted for about a third of homes sales through the first two quarters in Maple Grove with roughly 36-39 percent over the last three years. Prices, however, for town homes saw a dramatic jump through the first two quarters of 2016 (as compared to 2015) as the supply shortage forced townhome buyers to improve prices at a more dramatic pace.
While almost always accounting for less than two percent of Maple Grove sales, twin homes sales only accounted for 1.5 percent of all sales so far in 2016. Although that number is slightly lower than previous years, it was mostly a result of lower supply of the more affordable homes.
By Age of Home
Homes built in 1980 or before have accounted for about 22 percent of home sales in Maple Grove through the first two quarters of 2016, which is down from about 25 percent of all home sales through the first two quarters in 2015. The average sales price for homes of this age comes in at $226,541, up almost three percent from a year ago. This age group of sale saw the second lowest price improvement and one of two price groups that dropped as a percentage of sales from last year.
While accounting for just over 30 percent of Maple Grove home sales through the second quarter of 2016, homes in this age category saw the largest growth in sales numbers compared to last year (182). Similarly, the average sales price has also experienced a strong surge as the $259,515 average sales price for a home in this group was up over 5 percent from the same time period a year ago. A large majority of the home sales in this age group were built around Rice Lake and Fish Lake neighborhoods.
As Maple Grove expanded west of Dunkirk to the Corcoran border, building in this age group accounted for more single family homes over a 10 year span. For four years in a row, homes sales in this age group have accounted for the largest percent of home sales with 33.5 percent of all Maple Grove sales happening in this group through two quarters this year. With an average sale price in this group of $298,401, this age group also experienced a 3.5 percent improvement over last years number - the second larges price jump of all the age categories.
Consistently accounting for less than 20 percent of all home sales in Maple Grove, homes built in the last 11 accounted for only 14 percent of all home sales through the first two quarters in Maple Grove this year. This group had the largest decline in the amount of sales as compared to the previous year. Average sales prices however fought hard and increased just over 1 percent over the previous years number $422,287.
When analyzing Maple Grove’s real estate information, it’s very important to also pay attention to the inventory of homes in different price categories and using that to determine how each home listing may react. Home buyers get qualified and comfortable with a home price and then go shopping. Looking at the Maple Grove real estate market through second quarter, 2016 then is an important part of understanding the market.
New Listings by Price Category
Under $180,000 - As the market has improved, the opportunity for single family homes (or even twin homes) has decreased throughout Maple Grove. Through second quarter 2016, 93 percent of the new homes listed in this price category have been townhouses or condominiums. Additionally, about 14 percent of the home sales in this price category are bank owned or short sales accounting for the majority of the bank mediated listings in Maple Grove in 2016.
$180,000-$280,000 - With nearly 38 percent of the Maple Grove new home listings falling into this category, it accounts for the largest category of the Maple Grove housing market. It was also the only price category to add more homes to the market this year (399) compared to last year's same time period (379). Single family homes in this price group are still the majority, but only accounted for 54 percent of the listings through two quarters this year compared to 70 percent a year ago.
$280,000-$400,000 - As would be expected, the single family home continues to increase its percent of this category with 79 percent of these home listings being single family. Bank owned (foreclosures) and short sales are now only accounting for 1.5 percent of the listings in the this price range, however, new construction homes in this price group also dropped to only 1.5 percent of all the listings.
Above $400,000 - Accounting for about 25 percent of the new listings through the first two quarters in 2016, the highest priced home category produced slightly fewer homes so far this year than the previous year (258 to 283). While the majority of the listings in this price category or single family (96 percent) and traditional listings, the percentage and number of both new construction and lake front/view listings are down considerably from last year.
Maple Grove Price Category History (Five Years)
While Maple Grove home listings are down considerably though the first two quarters compared to last year, not all price categories have seen a drop in numbers. Looking at a six year chart in how new listings have changed in Maple Grove, it’s easy to see the change in availability of Maple Grove homes in different price groups. While there’s been a significant drop in both the lower ends of the price groups, the price groups in the middle of the market seem to be keeping up with demand a little more efficiently (see chart below).
Going back to 2011, we see that the new listings coming to market below $180,000 were the most common home listing in Maple Grove and accounted for nearly a third of all listings. Since that time, and with the foreclosure crisis seemingly over together with three strong years of price increases, homes in that price range are now the least available with only 15 percent of 2016 new homes listings falling in that group.
Months of Supply
Looking at today's
supply of homes (see chart below) we see what's really
happening in the Maple Grove real estate market. While all price categories have seen a drop
in the supply, those homes above $400,000 remain in a slightly more “neutral”
market than other price groups with 4.7 months of inventory currently on the
market. As noted previously, the lack of
supply in the most affordably priced homes, those under $180,000, makes a very
strong sellers market with only 1.1 months of inventory, and the next group
(prices $180,000-$290,000) are similarly in a strong seller's market with just
under two months of inventory.