2016 Maple Grove Real Estate Review (sponsored)
Jan 12, 2017 03:28PM
By David Garves, Broker/Realtor with TheMLSonline.com
Demand for a Maple Grove home by buyers continued to grow in 2016 resulting in the highest number of home sales in more than 10 years within our city. (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.
With strong numbers across the board, faded are most people's memories of the housing crisis, foreclosures, short sales and upside down mortgages. With only a few home owners still feeling the impact of the housing bubble - 2016 continued to build confidence that the Maple Grove market is strong and safe as home owners again felt the excitement of equity improvements in 2016.
Homes Sold (Demand)
Demand for a Maple Grove home by buyers continued to grow in 2016 resulting in the highest number of home sales in more than 10 years within our city. With 1,462 sales, there was more than a 5 percent increase in home sales during 2016 than the previous year (see chart below).
The increase in home sales is even more impressive considering that new construction is still just a trickle of what it had been within the Maple Grove boarder. In 2016, only 46 of the home sales were the result of a newly built home, down nearly 50 percent from last year and off the 2010 peak by nearly 80 percent.
While interest rate
increases may have an impact on total 2017 demand (see Eric Bloomstrand's comments below) there seems to be no shortage of demand heading into first
quarter of 2017!
New Home Listings (Supply)
Despite the huge demand by home buyers looking to buy in Maple Grove, the Maple Grove community failed to answer the bell. With only 1,764 homes being listed for sale in 2016, we were down over 7 percent from the 2015 listings and provided the fewest homes to the market since 2013. (see chart below)
Months of inventory - The heavy demand and closed sales by home buyers together with the lack of new listings in Maple Grove has left us with the lowest months of inventory numbers we’ve seen in Maple Grove for decades. By the end of 2016, we were left with only 1.1 months of inventory for home buyers to shop for - down 45 percent from the supply number a year ago and the lowest mark on record for Maple Grove housing supply!
Foreclosure and Short Sale Market - Besides the lack of new construction homes noted earlier, the lack of supply is also a result of an improved economy that no longer brings bank mediated homes to the market. While once accounting for approximately 35 percent of the supply of homes, only 74 Maple Grove sales in 2016 were the result of foreclosure or short sales - about 4 percent of the Maple Grove housing market.
2016 saw a very healthy and very positive increase in home values.
With demand low and supply high, both single family homes (up 4.5 percent) and townhome/condo’s (up 5.2 percent) made home sellers happy with solid gains on median home price compared to the previous year.
Good news, also, for homeowners in Maple Grove as the growth was “reasonable” and a number that doesn’t create bubble talk and concerns of another down market. (see chart below)
Price Per Square Foot - Breaking a home down into little squares and pricing each square is always a good way to compare market strength. Like most of the other data, Maple Grove had a good year here, too, as the average price per square foot improved by 5 percent from last year to $128 per square feet in 2016. This is the highest price per square foot in Maple Grove since 2008.
It was a good year in
Maple Grove real estate.
According to Eric Bloomstrand from Bell Bank Mortgage (NMLS #274211), 30-year fixed mortgage rates made a heavy move up at the end of the 2016 finishing the year at about 4.32 percent. This was the highest market for interest rates for the year and the highest interest rates we’ve seen since the beginning of 2014. (see chart below)
Historically, however, Eric says the interest rates remain very aggressive and haven’t seemed to hurt buying power for home seekers. Interest rates remain well below the averages during the housing bubble and about 25-30 percent off of the highs in the mid-80’s when interest rates soared above 15 percent. (see chart below)
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.