19 Feb Luxury Home Sales Update for January 2014
The Luxury Home Sales Update is ready for January and it’s listed below. In our cold weather climate the Real Estate Market is so seasonal. Keep in mind that it starts out with First Time Homebuyers purchasing the townhomes and entry-level homes, which allows the seller of those homes to move-up to a larger home.
This of course means that the Higher Priced Home, or Luxury Homes have a Spring Market rush that starts later into the year by about 6 weeks. The severe cold and duration of our cold weather has set the Spring Market back a few weeks in my opinion.
The chart shows our sales of homes by city, all the homes were listed for over $400,000, some may have sold for a little lower but nearly all sold for more than $400K. As a matter of fact, that brings up a good question, “What is the Average Sales Price compared to List Price in MN?” Our Sales Price as a % of List Price has now increased to 97% in the South Metro Suburbs, according to the Minneapolis Area Association of Realtors Website. You can visit their site at mplsrealtor.com
One additional challenge we face this year is the overall Low Inventory, for full details of how this affects the market you can read my Low Inventory of Homes for Sale, What it Means for You blog post.
Notice on the chart that Luxury Home Sales in Lakeville far exceeded all other suburbs and Luxury Home Sales in Prior Lake were a close second. Eagan Luxury Homes Sales show the best picture for sellers, this is because of how many homes received offers as compared to how many current listings there are in the price range.
Take a look at Eagan Luxury Homes and you’ll see that 6 homes received an offer in one month and there are only 31 active listings. I would calculate that to a 5 month supply of homes, a 5 month supply of homes is considered a balanced inventory by the National Association of Realtors. Compare that to the Burnsville Luxury Home Sales and you’ll see a 12 month supply, making it an extreme buyer’s market last month.
This is only a 1 month snap shot and the pace of Luxury Home Sales can and will change rapidly in Eagan, Lakeville, Burnsville, Apple Valley and all the suburbs as the Spring Market for 2014 ramps up.
Stay tuned for the next Luxury Home Sales Update for February. If you would like to receive these blog posts via email, sign up for our Receive Blog Posts Via Email which you can find in the bottom right hand corner of each webpage.
Call/Text at 612-889-6496 or email me, [email protected], if you have any specific questions regarding the Sale of High End Real Estate in the South of the River Suburbs.