Saturday, January 2, 2010

Forest Lake, MN Year End Real Estate Market Statistics for 2009

Forest Lake, Minnesota is well known throughout the Twin Cities area. Many people from the city remember the northeast St. Paul suburb fondly from years gone by as a summer vacation spot, an annual ice fishing tournament tradition or as a destination when going for a Sunday a drive in the country. Today, the lakeside cabins have been replaced with year round residences, the fishing tourney is but a memory and the farms are few and far between in this third ring St. Paul suburb. The northern Washington County and east Anoka County community of Forest Lake is now considered an integral part of the Twin Cities.
Real estate in Forest Lake, MN did sell well in 2009 especially in the lower price points. A total of 309 properties sold in the Forest Lake Area during 2009. Roughly two thirds of these sales, 201 properties, were single family homes while the other 108 were townhomes, condos or twin homes. This number is up from the 259 homes sold in the Forest Lake area in 2008.
The Cumulative Days on Market (CDOM) Statistic ran at 160 days for all homes sold during the year. This is a 12 % decline in market time from last year’s CDOM stat of 181 for all properties sold in the Forest Lake area in 2008. Not as positive of news is that the average price of homes did see a significant drop from 2008 to 2009. The average price of a home sold in Forest Lake was $239,819 in 2008 but in 2009, that average was 26% lower with an average home price of $176,776.
Not surprisingly, the price category of under $200,000 is the high point with 210 properties sold during 2009 (107 Single family homes and 103 townhomes/condos). The $8000 tax credit really made an impact in the Forest Lake market as the first time buyer homes under $200,000 really moved quickly in 2009. Inventory is very manageable under $200,000 with just 3 months of currently listed homes available for sale. Though homes in the $200,000-300,000 category in are selling a bit slower, 8 months worth of inventory is very manageable. As is the 10 months of inventory in the $300,000-400,000 price range of homes. Even in the $400,000-500,000 priced homes have seen drop in inventory levels to where there is just over a year’s worth of inventory.

However, as in 2008, the high end homes struggled for sales throughout 2009. Homes over $500,000 remain at a near standstill with only ONE home over half a million SOLD in the Forest Lake area in all of 2009. As most lakeshore homes fall into this category, there is an abundance of high valued lakeshore homes to select from in the Forest Lake area. With one sold in the past 12 months and 23 active listings over $500,000,
it will two DECADES for all the homes to sell at this pace.
What does this mean for the home buyer? Homes were well priced in Forest Lake during 2009 so there was a dramatic reduction in the number of listings to choose from. Homebuyers in 2010 will have to make quick decisions on homes in Forest Lake that appear to be good values. Lakeshore and acreage properties priced under $500,000 are selling again, with an average market time of 5-6 months so it is important to be prepared to buy when the right property comes onto the market.

A buyer looking to purchase high-end lakeshore in the Forest Lake area, is in the driver’s seat in 2010! With so much inventory, high-end lakeshore sellers will need to be flexible on pricing if they want a SOLD sign on their home any time soon. NOW might be the perfect time to negotiate a GREAT deal on a lakeshore home! The inventory is awesome…35 lakeshore homes are currently active; some are at attractive and affordable price points. Many have been on the market for several months. With the continued amazing low interest rates, the extended and expanded homebuyer’s tax credit and few buyers willing to consider buying frozen lakeshore, it could be a great time to negotiate a deal on your piece of Minnesota shoreline!

2009 Average Sales Price of all homes sold in Forest Lake:

  • All Homes $176,776
  • Single Family Homes $209,778
  • Townhomes/Condos $122,799
2009 Average Cumulative Days on Market in Forest Lake:
  • All Homes 160
  • Single Family Homes 157
  • Townhomes/Condos 164
Year End 2009 Forest Lake real estate statistics for single family homes:
Under $200,000~ 27 Active Listings, 12 Pending Listings, 107 Sold Listings, 136 CDOM (Lakeshore Subgroup ~ 0 Active, 0 Pending, 6 Sold)
$200,000-$300,000 ~ 33 Active Listings, 1 Pending Listings, 60 Sold Listings, 169 CDOM (Lakeshore Subgroup ~ 4 Active, 1 Pending, 5 Sold)
$300,000-$400,000 ~ 17 Active Listings, 2 Pending Listings, 25 Sold Listings, 209 CDOM (Lakeshore Subgroup ~ 3 Active, 0 Pending, 8 Sold)
$400,000-$500,000 ~ 10 Active Listings, 0 Pending Listings, 8 Sold Listing, 188 CDOM (Lakeshore Subgroup ~ 7 Active, 0 Pending, 3 Sold)
$500,000 and Up~ 23 Active Listings, 0 Pending Listings, 1 Sold Listings 306 CDOM (Lakeshore Subgroup ~ 18 Active, 0 Pending, 1 Sold)

Year End 2009 Forest Lake residential real estate statistics for townhomes and condos:

Under $200,000~ 30 Active Listings, 11 Pending Listings, 103 Sold Listings, 163 CDOM
$200,000-300,000~8 Active Listings, 0 Pending Listings, 4 Sold Listings, 78 CDOM

$300,000-$400,000 ~ 4 Active Listings, 0 Pending Listings, 1 Sold Listings, 79 CDOM
For additional information on any current Forest Lake real estate listing or for additional information on buying a home in Forest Lake contact Teri Eckholm directly at 651-336-7073.
35 Active Lakeshore available in the Forest Lake area:

Price range: $189,900-$2,600,000

  • 32 Homes on Forest Lake
  • 1 Homes on Clear Lake
  • 2 Home on Comfort Lake
**All Statistical information based on information from the REGIONAL MULTIPLE LISTING SERVICE of MINNESOTA, INC. for the period of 1 /1/09 through 12/31/09.

Copyright 2010 Teri Eckholm