Lake Minnetonka Real Estate Update-February 2010
The Lake Minnetonka area has been affected just as hard as the rest of the Twin Cities metro real estate market. Most of the stats show decreases both for February and year to date. This is not surprising as no area is immune to this 2+ year real estate decline.
New Lake Minnetonka Homes for Sale listings were down by 11% or 18 units in February versus last year at the same time. Year to date listings are down almost 3%. Many sellers are realizing that they have lost equity in their properties and/or are not able to sell their homes for what they previous thought and have decided to not list their homes. Many of the listings are also coming off the market as single family home inventory is down by almost 8% in February.
Some of the decline in inventory can also be attributed to a rebound in closed sales of 17.1%. Truthfully it sounds significant, but it only represents 6 more houses closed in February 2010 versus 2009. It is a trend that we would like to see continue as closed sales are also up almost 6% year to date. Wayzata and Mound were the largest gains of closed sales in February.
The median and average sale prices of homes that were close has continue to fall significantly. February saw a 29% dip in median sale prices with a 12.6% drop in average sale prices. Year to date numbers were 22.2% and 27.4 drops respectively. Buyers are taking advantage of the short sales and REO inventory to drive prices down. Wayzata also has a large number of sales ($3.6M) that may have stopped the sales numbers from being lower as it was up 893% over February 2009.
In February 2009, sellers were receiving only 82% of the original list price at the sale. In 2010 the sellers are receiving almost 92%. Much of this can be attributed to sellers being more realistic now on what their homes are really worth and pricing them accordingly.
Thankfully, average days on market has come down dramatically from over 8 months to just over 5 months. This 32% decrease is welcome news. The decreased inventory of Lake Minnetonka homes helps bring down the market time.
If you are in the market to sell or buy a home around the Lake Minnetonka area, call me at 612-281-5419.
I am a licensed Realtor in the State of Minnesota. This website is not a multiple listing service, but each Minnesota & Minneapolis real estate agent is a member of the Regional MLS of MN, inc., a provider of the Minnesota MLS.
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