August 2016 Maple Grove Real Estate Update (Sponsored)
Sep 27, 2016 02:12PM
● By David Garves, Broker/Realtor with TheMLSonline.com
For only the second time in three years, the monthly average price for a Maple Grove home sale has come in more than $300,000. (graphic provided by David Garves)
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
Maple Grove real estate numbers continued to show strength and improvement across the board in August - the only real concern being a continued lack of inventory for the homes with the most demand in the area (under $300,000).
With school starting and the cooler weather moving in, there may be changes coming - but according to August data, the market continues to be very favorable to Maple Grove home owners!
Sold Homes (Demand)
While supply continues to come in short of previous year numbers, demand for Maple Grove homes continues to be STRONG. August home sales totaled 148, up nearly 3 percent from
Year to date, that puts Maple Grove home sales nearly 5 percent ahead of 2015 numbers and there seems to be no slowdown in site as pending numbers also seem to stay RED HOT despite the end of the summer months (see graph). At the end of August, there were 150 pending sales in Maple Grove - a number that was more than 20 percent higher than this time last year.
It seems to be an indication that the strong demand in Maple Grove will continue a bit longer.
New Home Listings (Supply)
Maple Grove home owners meanwhile remain silent as only 161 new homes came to the market in August 2016 - down about 9 percent from the previous year.
It marks the third month in a row of lower than expected listings coming to the market and leaves us down about 4 percent year-to-date from the 2015 numbers.
The low listings, combined with the heavy demand, leave us with an inventory number of 2.3 months -down 32 percent from last August and the lowest August inventory number in well over 10 years (see graph). As we head into the winter months, it will be important for homeowners to keep a steady supply of homes coming to the market or buyers may head elsewhere!
With the short supply and continued heavy demand - economic principles tell us to expect home prices moving higher and August numbers support the theory!
For only the second time in three years, the monthly average price for a Maple Grove home sale has come in more than $300,000 (the other was in May this year). August also marks the fifth month in a row the monthly average sales price has exceeded the previous year's number.
Additionally, the price per square foot of a Maple Grove home hit $132/square feet in August. The highest we’ve seen since May 2008! A great indication that while prices have moved up nicely, there’s still plenty of room to continue moving up.
According to Eric Bloomstrand from Bell Bank Mortgage (NMLS #274211), 30-year fixed-rate mortgage finished August 2016 at 3.48 percent. A year ago at this time, the 30-year fixed rate mortgage averaged 3.91 percent.
The lower home loan rates is good news according to Bloomstrand. For people in the market for a home right now, good rates can help offset home price increases.
around the country, including distressed sales, have risen six percent from July 2015
through July 2016, according to data analytics firm CoreLogic. Low rates will
likely fuel home purchases in the year ahead. Limited inventory, however, could
further drive home prices up because the supply is not meeting demand.