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July 2016 Maple Grove Real Estate Update (Sponsored)

Aug 27, 2016 12:36PM ● Published by David Garves, Broker/Realtor with TheMLSonline.com

With 149 new home sales, the demand for homes exceeded the previous years number of 141 by 5 percent. (graphic provided by David Garves)

The following was written and sponsored by Broker/Realtor David Garves  along with information provided by Eric Bloomstrand of Bell Bank 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 July real estate market remained as hot as the 90 degrees we had throughout the month with record setting numbers and sales prices exceeding expectations. There are some signs, however, that there may be a chink in the armor of what’s been a very mighty real estate market for the last four years.  
 
Sold Homes (Demand)
July was Earth’s hottest month on record, however, that failed to prevent home buyers from coming out to Maple Grove to find their new home!  

With 149 new home sales, the demand for homes exceeded the previous years number of 141 by 5 percent.

Despite weeks left of summer, we may see a possible cooling of the market when we look ahead. At the end of July, there were only 120 homes under contract (pending sales) compared to 131 pending sales for the same time period a year previously.  

While this could be simply a result of lack of inventory in the market, if the numbers hold true - August could be the first month of 2016 with sales numbers that fail to exceed the previous years total.

New Home Listings (Inventory)
For the second month in a row, and fifth month this year, the new home listings number failed to produce as many homes for the Maple Grove supply inventory as the previous year had.

With 196 homes coming to our market in July, we saw 1.5 percent fewer homes than a year previously and puts us about 3.5 percent below the year to date number compared to 2015.
 
The months of inventory number remained dangerously low at 2.6 months. This number is more than 27 percent lower than the previous years number and is an indication that demand is far outpacing supply of homes in our market.
 
Sales Price
Basic economics state that in any environment with decreasing supply and increasing demand, prices will increase - and the Maple Grove market place again followed the economic rules.
  
July average sales prices came in at $295,162, improving for the fourth month in a row compared to the previous years number. Additionally, we also see an average price per square foot of a Maple Grove home similarly improve to $129/square feet, compared to $124 a year ago. 

Both strong numbers and the price per square foot numbers for July were the highest Maple Grove has seen since 2007.  

Interest Rates
 According to Eric Bloomstrand from Bell Bank Mortgage (NMLS #274211), 30-year fixed-rate mortgage averaged 3.44 percent at the end of July, 2016.  A year ago at this time, the 30-year FRM averaged 4.05 percent.

Consumer confidence held steady from June to July, with consumers remaining cautiously optimistic about personal income prospects and job growth in the near future.  
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.

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 

 

 

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