Blaine, MN | A Tale of Two Markets...or Three
While it is said that all real estate is local, the market in Blaine, Minnesota is following a pattern seen across the country, there is a discrepancy across markets. There is a continued lack of inventory in the starter homes while in high end homes there is an abundance.
One difference I am seeing in and around the greater Blaine 55449 zip code is that there is a bit of a leveling off of the mid-range or move-up homes sales as the market seems to be come a bit more balanced for this price point. A quick look at the MLS today showed that there were only 7 homes available under $200K but more than triple the amount in the $200K to 300K price point with 21 active homes. Over $300K there were quadruple active listings with 109 homes currently available.
Real estate is often the biggest investment a person will make in their lifetime. Understanding the nuances of the local neighborhoods is essential.
Today I would like to explore this further with A Tale of Two Markets
Six months ago, I reported that the mismatch between the type of inventory of homes for sale and the demand of buyers in the US was causing the formation of two markets.
In the starter and trade-up home categories, there were significantly more buyers than there were homes for sale, causing a seller’s market. In the premium, or luxury, home categories, the opposite was true as there was a surplus of these homes compared to the buyers that were out searching for their dream homes, which created a buyer’s market.
According to the National Association of Realtors latest Existing Home Sales Report, the inventory of existing homes for sale in today’s market is at a 4.2-month supply. Inventory is now 6.5% lower than this time last year, marking the 27th consecutive month of year-over-year decreases.
Looking at the latest report from Trulia, we can see that not much has changed, and in fact, recent natural disasters across the country have made inventory conditions even more dire.
Trulia’s market mismatch score measures the search interest of buyers against the category of homes that are available on the market. For example: “if 60% of buyers are searching for starter homes but only 40% of listings are starter homes, [the] market mismatch score for starter homes would be 20.”
The results of their latest analysis are detailed in the chart below.
Nationally, buyers are searching for starter and trade-up homes and are coming up short with the listings available, which is leading to a highly competitive seller’s market in these categories.
Premium home buyers, on the other hand, have the best chance of less competition and more inventory of listings in their price range with a 14.7-point surplus, which is creating more of a buyer’s market.
Bottom LineReal estate is local. If you are thinking about buying OR selling this fall, let’s get together to discuss the exact market conditions in your area.
Source: KCM Teri Eckholm Blog
READY to Make YOUR Move? It IS essential to have a knowledgeable agent at your side. If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of BOARDMAN Realty, a call at 651-336-7073 or visit my website for a FREE Home Buyer Success Guide or FREE Home Value Report. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.
Copyright 2017 terieckholm.com
Copyright 2017 terieckholm.com