Welcome to the first installment of the Real Estate Market Update for Woodbury! I’m John Durham, a RE/MAX Results realtor with the Durham Executive Group right here in Woodbury. Through this blog, my wife Becky and I will bring you the latest trends and market statistics. The Real Estate Market Update will supply you with monthly statistics from the Regional Multiple Listing Service of Minnesota and help you figure out what it means to you as a home owner or buyer. Whether you are considering buying, selling, or just want to get an idea of your home’s value, you will find the information you need to make good decisions. Check back frequently for the lastest news and leave us a comment if you have a question. We’ll be happy to answer it for you!
2012 Real Estate Statistics – Things are Looking Up!
When the Woodbury housing market derailed and we saw it start to deteriorate in the latter part of 2006 and into 2007 no one really knew what to expect. Housing experts across the country talked about how the national housing market would never be the same.
We don’t know what is going to happen on a national level, but what we do know is:
- Woodbury new home construction is reviving;
- Interest rates are still at, or very close to, historic low levels;
- Home prices appear to have hit bottom in 2012, with home prices bouncing their way back upwards.
How soon before home values equal the home prices in 2004 and 2005 is anyone’s guess, but for any potential home seller out there who has been trying to wait out the market, every indication shows it will be many years before the market returns to previous conditions.
The exciting news is that in 2012, Woodbury had a 9.2% median sale price increase along with a reduction in the months’ supply of homes to 3.7 months. Breaking this down further, Woodbury’s zip code 55129 showed a 3.4% average sale price increase with the months’ supply of homes on the market significantly dropping to 4.2 months (see graphs.)
At the end of 2012, we saw dramatic housing data improvements in Woodbury’s zip code 55125, with an average sale price increase of 14.7%. The days on market dropped 27.8% while the months’ supply of homes
decreased 40.4% for a months’ supply of 3.4 months (see attached graph). With a 3.4 months’ supply of homes available to buyers, this means home sellers in zip code 55125 and 55129 are definitely in a sellers’ market situation as we begin 2013.
The months’ supply of homes is vital in the housing market in determining whether it is a sellers’ or a buyers’ market. A balanced Woodbury housing market is achieved when there is a 5-6 month supply of homes on the market. If the months’ supply of homes on the market is more than 6 months, we are in a ‘buyer’s market. If there is less than a 5 months’ supply, the market is called a ‘sellers’ market.
Subsequently, with the supply of homes down significantly, 2013 might be the right time for those who have been trying to wait out the market to list their home. For home buyers, recognize Woodbury home prices are finally pointing upwards and there is a significant increase in the number of multiple offer situations due to the limited supply of homes for sale.
Presented by Durham Executive Group
- John Durham 651-231-2191
- Becky Durham 651-231-2192
* Housing statistics and information provided by John and Becky Durham are based on data available as of January 1, 2013. Data comes from the Regional Multiple Listing Service of Minnesota, Inc. Data deemed reliable but not guaranteed. Powered by 10K Research and Marketing.
John Durham, a RE/MAX Results realtor