We have all been watching the National and Regional Statistics on the housing market. That is great information, but I wanted to demonstrate just how local real estate markets are.
Plymouth, MN has been a better than average market in the Twin Cities through this market downturn, so I am going to do a quick market snapshot of the local market in Plymouth.
The chart to the right is showing NorthStar MLS Active Single Family homes in Plymouth, MN and showing the Pending and also the Sold homes in the last 180days. This is Single Family only and excludes Townhomes, Condos, and mutli-units.
This shows the Supply & Demand along with an Absorption Rate calculation. The Absorption Rate figure gets to be less accurate on a smaller scale like this. If you add 1 or 2 more Actives or 1 or 2 more or less Pending/Solds – the absorption rate changes drastically. So we use it only as a barometer of the current pace of sales.
I calculate my Absorption Rate differently than the other rates you may see out there. I take the Pending and Solds over the last 180 days (6 months) and average them into a monthly figure to calculate how many months it will take to sell the remaining Actives. The reason I do this methodology is I believe it takes out the radical swings from good months to bad months and gives a more reliable figure.
As you can see there is big differences between price ranges just within Plymouth. The price ranges between $0 – $400,000 are in a Sellers Market, while between $400,000 – $500,000 is in a Buyers Market.
Below is a chart showing a visual of the Price Ranges Supply and Demand.
This is helpful if you are considering selling to understand your competition or if you are considering buying. Which price bracket do you think you could negotiate the best the terms on?
The Local markets actually get even more “hyper-local”. Each Price Bracket acts as an individual market and when you dig into that individual price bracket you will discover even more markets. These markets will include: School Districts, neighborhoods, age of home, style, bedrooms, baths, and size. This is where the CMA’s, Comparative Market Analysis, become a valuable tool. If you would like a CMA on your home, I can provide you with a free CMA on your home.
I hope this is enough information to demonstrate the market conditions in Plymouth without going into an in-depth analysis consuming your valuable time.
If you would like to see a Market Update or “snapshot” of another market in the Twin Cities, please make your suggestion in the comments below. I plan to do a few more so they may as well have relevance to you!
- Plymouth, MN Upper Bracket Home Sellers Conundrum (johnmurphyreports.com)
- Homes by Tradition wins two Reggie Awards for Spirit of Brandtjen homes in Lakeville (craigkamman.wordpress.com)
- Twin Cities Weekly Real Estate Market Update, week ending 10/22/2011 (craigkamman.com)