LOCAL Real Estate Analysis
Lynnhurst, Fulton, and Linden Hills
with data from June 2018
I'm very sorry, but for some reason, my charts disappeared...
scroll down a bit to see the "traders market" analysis.
Imagine these two graphs above, with one laid over the other.
Far less transactions have taken place, since the peak in 2016. Yet prices have increased from 207 to 233.
Might this lead to things being labeled, "overpriced?" {it depends.}*
Sales prices peaked... a few months ago... in our neighborhood. In our price range. Homes like ours.
That's the local story, at the moment.
Here's how I experienced it: I have just sold a GOOD house with a GREAT yard at a reasonable price in THIS NEIGHBORHOOD. We had to drop 10K from $550,000 to get the list price that brought the offer. A lot of people have been saying this is a hot market... But the fact is, It's only a hot market above a certain price point.
A property priced under 350K, in our market -- goes like a hot cake. That's almost land price.
The question is... At what higher price does the market remarkably slow down..?
This much is sure -- It's not the 1 million-dollar price point. It's much, much lower than that...
My listing at 3840 Abbott Ave So was on the market for five weeks, from May until early June...
We dropped from $550 to $540 when five other homes hit the market at 550...
We sold ours. Some of the others have had to drop their price, and still haven't sold. . .
Buyers are wary right now... and sellers are being surprised, when they do not receive more money for their good, and even excellent, homes.
Think about this --- I believe that it's going to be about LAND. If you live at the top of a hill near the lake, that's a LOT better than being on the other side of the hill. Near the library? Great. Near water? Even better.
Minneapolis 2040 is a real thing, with an engine. It's coming our way. We can attempt to affect it's course... But in my opinion, turning it around is unlikely...
My understanding of the 2040 plan -- what is and isn't actually happening... --- is the topic of a future blog.
What I am suggesting here -- is that pricing has just become much more about land, and less about the structures on the land.
And by the way, this rule does not just apply to our neighborhoods, and our prices. 60-foot lots in Longfellow just got a lot more valuable.
{Did you know, btw: it's often quieter, nearer to the freeway..?
HERE'S ONE OTHER FINAL THOUGHT ABOUT LOCAL PRICING
$207 per sq ft to $233 per sq ft.
This is what I call a trader's market.
It does not advantage buyers, nor sellers... But traders.
Who knows how to trade in this market?
Those will be the winners right now.