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October 2016 Maple Grove Real Estate Update (Sponsored)

Nov 21, 2016 08:46AM ● Published by David Garves, Broker/Realtor with TheMLSonline.com

With 110 sales, Maple Grove sold more homes than it produced new listings to the market in October 2016. (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.

Maple Grove homeowners have seen fantastic returns as a result of the strong home buyer environment creating a continual demand for homes while housing supply has remained low. In October however, we literally SOLD more homes than we put brought to the market.  While this type of market may be great for Yeezy shoes, it could possibly create an environment for housing that will send home buyers to other areas.  
We need more homes! 

Sold Homes (Demand)
As predicted last month, the sales numbers for Maple Grove homes again exceeded the numbers for the previous two years. With 110 sales, Maple Grove sold more homes than it produced new listings to the market (see left graphic). 

Year to date numbers show that home sales have increased by more than five percent for the first 10 months of the year compared to 2015 and exceed the 2014 numbers by nearly 21 percent!

Pending sales do show a bit of a slowdown heading into the cooler weather months with only 90 pending sales currently in the market, down about 15 percent from last year.  Most likely, this drop in pending sales is a direct result of the low inventory numbers currently available for home buyers.

New Home Listings (Supply)
Following up on a slow September, Maple Grove home owners produced the lowest inventory
number of 2016 with only 91 new homes coming to the market. Compared to last years October number (141), we were off more than 35 percent this year. 

Months of inventory dropped from 2.3 months at the end of September to only 2.0 months at the end of October and is off by more than 35 percent from a year ago. It’s just slightly above the 1.9 months of inventory in January 2016 which was the lowest mark in Maple Grove for well over 10 years and signals continued inventory problems as the colder weather months arrive.

Sales Price 
While I’m very concerned about the longer term effects of a low inventory number in Maple Grove, the short term results of strong demand and low inventory are fantastic for Maple Grove home owners as average price of an Maple Grove sold home in October exceeded $300,000 again. At $304,264, prices improved by more than seven percent over last years numbers.
  
Price per square foot numbers also improved by nearly six percent at $128/square foot.  This is the highest price per square foot number for October since 2005!

Year-to-date numbers show that average sales price of a Maple Grove home is at $293,177, up nearly four percent from a year ago and improving at a very healthy, sustainable pace.

Interest Rates
According to Eric Bloomstrand from Bell Bank Mortgage (NMLS #274211), 30-year fixed-rate mortgage saw a slight move up following the election and were last reported at 3.57 percent but remained below the 3.8 percent rate at the end of October a year ago.  

Existing home sales rose nationally in September, with first-time buyers claiming a 34 percent share of home purchases, a high not seen in over four years. 
Limited inventory, however, still plagues many regions of the country. Lawrence Yun, NAR's chief economist, noted, "Unfortunately, there won't be much relief from new home construction, which continues to be grossly inadequate in relation to demand." ... supply is not meeting demand.Existing home sales rose nationally in September, with first-time buyers claiming a 34 percent share of home purchases, a high not seen in over four years.

To see previous monthly reports on the Maple Grove Real Estate market, check out: MapleGroveRealEstateInfo.com or 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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