Have you read about the annual housing report for 2018?
Now you are thinking “I am going to sell my home this year in multiple offers the first day it hits the market for even more than the price I listed it for?” If this is you, let’s have a real chat as to what is going on in the market where you live.
The Annual housing reports all talk about the 3 records the housing market hit in 2018.
- First up is the high Median sale price of $265,000.
- Second is the record low days on the market at 48.
- Third and defiantly not the least important is that sellers were receiving 100% of list price, and yes, some home did go into multiple offers where the seller got more than there list price.
These facts are all true when you look at the whole 16 county metro that the reports are talking about, but let’s take a closer look as to what is happening out here in the Minnetonka school district compared to the 16-country metro.
First up the Median sales price for our area the Minnetonka school district. We faired a bit better than the 16-county metro with an 8% gain over last year vs. the 7.7% gain in the 16-county metro. The average price point in our area is $210,000 more than the 16-county metro, which makes it harder for a first time home buyer to afford to move into the Minnetonka school district.
We also saw the similar growth in inventory in our area that the 16-county metro did at 7.4% increase. Still, lower than 2016 for both areas but on an upward trend. That will help everyone who is looking to buy a home.
When you look at the Median % of original list price you see our area is still improving at 97.5%, but we are not in the same situations with other parts of the 16-county metro that are getting 100% of list price or going into multiple offers. Our higher price point does play a factor as buyers that are buying a $475,000 home have more homes to choose from then a buyer buying in the $265,000 price range.
Average days on market is one of the baggiest differences in our area than the 16-county metro. At 83 days vs. 48, we are up 2.5% vs. this time last year. So, when you hear homes are selling before they list or in multiple offer their first day on the market. This is not what is happening in this area. We are well below the 170 days on the market that we reached in 2011 and 2009. However, if you are selling you will have to endure some time on the market as part of the home selling process.
Months Supply is also higher in the Minnetonka school district with 3.5 months of supply on the market vs. 2.1 months in the 16-county metro. If we were to look at the days on the market for the 16-county metro at a higher price point, they too would have 3+ month supply. A great indicator that when you are selling your home at a higher price point, you will have more competition and it will take longer to sell.
So now that I have brought you back down to reality, Lets set up a time to meet and go over what the market is doing in your neighborhood. Your Annual Housing Market Review will include the same reports, but for your city. I will also print a list of the homes that sold, tried to sell in 2018 or are currently active for sale in your neighborhood. Even if you are not thinking of selling this year, it is always good to keep current on what the market is doing around you.
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