REAL ESTATE PRICES
HOW'S ALL THE NEW CONSTRUCTION
WORKING OUT FOR THE
VALUE OF YOUR HOME?
NOT VERY WELL.
A friend in the real estate business recaps February 2020 data from the MLS:
"New construction in Wayzata schools was at 4.7 months of supply, which is down 13% relative to last year, but still a high number relative to surrounding school districts. Osseo Schools is at 2.9 months of supply and Robbinsdale is at 3.3. Supply is down in both districts relative to last year.
For previously owned homes Wayzata is sitting at 2.6 months of supply, up 4% compared to this time last year. The rest of the Twin Cities is at 1.9 months of supply for existing homes on the market which is pretty much flat to last year. Osseo is at 1.5 and Robbinsdale is at 1.3.
The biggest issue is in homes in the $600,000-$800,000 range. We continue to see new construction in this range, increasing the months of supply in existing homes and lowering their value. I have come up against this time and again while trying to sell clients' homes in the northern part of Plymouth where they have been in the home for 5 years and are barely able to sell for what they purchased due to new construction still going up all around them.
In the $600,000 to $800,000 range there is 4.4 total months of supply, up 15.8% to last year for previously owned homes. The median sales price is down about (1.3%) to LY and when you look back to 2017 it's down (2.2%). New construction continues to be built within $10,000 of the average price of existing homes. New construction prices are flat to LY and sitting at 4.6 months of supply.
In summary, we have a highly desirable school district that builders want to build in and they keep on building. But we are much higher than surrounding communities in terms of months of supply. These numbers do not include all of the upcoming developments that are also being built, as the data only includes what is currently listed on the MLS. So I expect the amount of new construction is actually higher than the 4.7 months of supply. "