West Savage Real Estate Blog

JUST SOLD in Trout Run! 8431 - 132nd Lane, Savage

JUST SOLD in Trout Run!   New construction custom rambler backing to a wall of trees!  Beautiful ebony hand-scraped hardwood floors throughtout the main floor.  Main floor office, vaulted master and enormous master bath.  Raised-hearth stone fireplace, custom cabinetry, fully finished basement with family room, bedroom, bath and two storage rooms.   Stunning views of the clifftop! 

Completed November 2012.  

SOLD AT $325,000+

 

Market Update for the Week Ending November 17

This year, there's a lot to be thankful for beyond the traditional holiday bird.  Home buyers can be thankful for record-low mortgage rates. Sellers can be thankful for the possibility of getting more
money in less listing time. Some homeowners are thankful for the housing recovery because it may alleviate underwater situations.  Tryptophan doesn't seem to be slowing buyer and seller optimism.  

In the Twin Cities region, for the week ending November 17:

• New Listings increased 11.4% to 1,046

• Pending Sales increased 9.8% to 843

• Inventory decreased 29.4% to 14,770

For the month of October:

• Median Sales Price increased 14.8% to $175,000

• Days on Market decreased 25.2% to 103

• Percent of Original List Price Received increased 3.5% to 94.5%

 

2012 Profile of Home Buyers and Sellers

Every year we take a look at the demographics of buyers and sellers from the previous year, and compare it to buyers and sellers from this year.    Each year the demographics shift and change. This year, however, we noted very few changes relative to the previous year, which is interesting considering the market saw vast changes this year.   Here are the demographics of buyers and sellers in 2012.

TYPCIAL CHARACTERISTICS OF BUYERS IN 2012

• 39% of buyers were first-time buyers, a slight rise from those in 2011.
• The typical buyer was 42 years old. 
• 65% of recent home buyers were married couples—the highest share since 2001. Conversely there was the lowest share of single buyers since 2001.
• The typical home buyer searched for 12 weeks and viewed 10 homes—a decline from 12 homes in prior year, which speaks to the tightened inventory in many areas.
• The median income of 2012 buyers was $78,600.  The median income of first-time buyers was $61,800 among first time buyers and $93,100 among repeat buyers.

  

TYPICAL CHARACTERISTICS OF THE HOMES PURCHASED IN 2012: 

• The typical home purchased in 2012 had 1900 square feet, 3BR, 2BA and was built in 1992. 
• Like last year, New Home Sales made up only 16% of the home buyer market.
• 79% of buyers purchased a detached, single-family home.
• The top three factors influencing neighborhood choice were quality of the neighborhood, closeness to job, and overall affordability.

THE HOME SEARCH PROCESS - and FINANCING A HOME IN 2012:

• For 41% of home buyers, the first step in the home search process was looking online.  This number was 35% last year, demonstrating a rise in the use of the internet.
• The typical buyer searched for 12 weeks and viewed 10 homes. 
• 87% of buyers financed their home purchase.
• 96% of first time buyers financed their home, compared to 81% of repeat buyers.
• Half of all buyers reported making sacrifices in personal spending and luxury items in order to be able to afford their new home purchase.
• 23% of buyers reported the mortgage application process was somewhat more difficult than expected, and 17% reported it was much more difficult than they expected. 

 TYPCIAL CHARACTERISTICS OF SELLERS IN 2012

• 46% of sellers traded up their home in 2012 for a larger home, while 62% chose newer homes.
• The typical seller lived in their home for 9 years before selling.  This tenure is up from 2007, when the typical seller lived in their home for only 6.
• 88% of sellers were assisted by a real estate agent.
• 60% of recent sellers report reducing their asking price at least once. 
• 40% of sellers offered incentives to attract buyers, including paying for closing costs and home warranties.

When comparing the 2012 Profile of Home Buyers and Sellers to the 2011 Profile, sellers are still doing what it takes to attract buyers to their home.   The buyer demographic is aging a bit, as we see more Boomers transition into retirement/maintenance-free living.  

JUST SOLD! 3BR Renovated Rambler at 621 S. Broadway St.

JUST SOLD!   621 S. Broadway Street! 

This 3 bedroom rambler is situated on a lot next to an unbuildable wooded property with mature trees.  The main floor has been completely renovated, with a brand new maple kitchen with stainless steel appliances, wide-plank Manchurian walnut hardwood flooring throughout, new fixtures, and fresh paint.  The main floor full bath has been fully renovated with a new tub, sink and stool, and new ceramic tile flooring. 

The lower level is unfinished and awaits your touches.  The home has a new roof (2010,) new garage door and opener (2011,) new decorative landscaping rock, and a new energy-efficient A/C.   The home is connected to city water and sewer, yet still offers a well for watering.   The lower level freezers, washer and dryer, and garage cabinets are all included.    With close proximity to town and 169, this home is conveniently located, yet private!   

View our VIRTUAL TOUR and ONLINE FLYER for 621 S. Broadway Street.  

Offered at $179,900.   SOLD at $177,000.

621 S. Broadway Street is proudly marketed by Chad & Sara Huebener of Edina Realty.  For more information or to request a private showing, call 952-212-3597.  

"The Monthly Skinny" - November 2012

West Savage Update - November 2012

Last month we mentioned that a lot of sellers are prepping their home for spring market.  It's always been what Minnesotans looking to sell "do."  And then, just this week, the Regional MLS of Minnesota released data that shows the percentages of homes that sell in the 13-county metro area based on month.  READ:  Season.  

It was in intriguing chart and one that contained a few surprises.

• Of the total housing inventory that sells in the 13-county metro area, 10% sells in May, 10% sells in June, and 10% sells in August.  No surprise there. 
• Of the total housing inventory that sells in the 13-county metro area, 7% sells in December, 6% sells in January and 7% sells in February.  

We all know people move year-round.  But what was so surprising is that the difference in the percentage of total sales in the summer vs. the winter is not nearly as drastic as we often believe.   If you would like to view the complete chart click here.     

Both single family and townhome inventory in Savage is steady from last month.  Scott County (as a whole) single family inventory has drastically fallen, but townhome inventory is pretty consistent.    

Our West Savage absorption rate is 2.36.   That means if zero new homes come on the market, it will take 2.36 months to sell our existing inventory.  This is still an amazingly low figure.

JUST SOLD on McColl Pond! 13538 Maryland Avenue, Savage

JUST SOLD!   13538 Maryland Avenue in Savage!   This four bedroom walkout two story is situated on a quiet and serene lot backing to McColl Pond.  

The main floor offers a kitchen with hardwood floors and a large, walk-in pantry, a sunken family room with a gas fireplace and built-ins,and an enormous 20x18 deck.   The family room, powder bath, and mud/laundry room also lies on the main floor. 

The second floor offers three bedrooms and two full bathrooms , including a private master bath with dual sinks, separate shower and whirlpool tub.  The finished walkout basement includes a bedroom, family room, ¾ bath and storage area. 

The home offers solid-core doors, updated lighting, a central vacuum system and 9-foot ceilings. The yard is fully fenced and includes an in-ground sprinkler system.  

Offered at $310,900.  

SOLD at $308,100.

 View our VIRTUAL TOUR for this home!

13538 Maryland Avenue in Savage is proudly marketed by Chad and Sara Huebener of Edina Realty.  For more information or to request a private showing call 952-212-3597. 

Homes Sell All Year Long

Last month we mentioned that a lot of sellers are prepping their home for spring market. It's always been what Minnesotans looking to sell "do." And then, just this week, the Regional MLS of Minnesota released data that shows the percentages of homes that sell in the 13-county metro area based on month. READ: Season.

It was in intriguing chart and one that contained a few surprises.
• Of the total housing inventory that sells in the 13-county metro area, 10% sells in May, 10% sells in June, and 10% sells in August. No surprise there.
• Of the total housing inventory that sells in the 13-county metro area, 8% sells in November and 7% sells in December.

We all know people move year-round. But what was so surprising is that the percentage of total sales in the summer vs. the winter is not nearly as drastic as we often believe. If you would like to view the complete chart, see below.

Trend to Watch: Housing Inventory Shortage?

If you've been tracking the market lately, you've noticed that the market is much more improved today than it was in recent years past, with home sales rising and prices inching upwards.   The inventory of existing homes is at its lowest level in seven years.

Falling inventory is causing home prices to rise higher and faster than most housing analysts anticipated.   The national median price of transacted homes was up 9.5 percent in August. 

As winter approaches, inventory will decline, as is typical for this time of year.   After Thanksgiving, the market quiets a bit in terms of new inventory, and we expect this year will be no exception.  Historically, housing inventory is 15% lower in the winter months, and this number is probably a little higher in Minnesota.   Last year, housing inventory was 25% lower in the winter. 

Lawrence Yun, Chief Economist of the National Association of REALTORS, hopes this trend will not continue this year for the reason that home values rising much faster than income growth cuts into affordability. 

That said, that is precisely what he believes we have coming.  Distressed properties will decline in volume due to fewer borrowers being seriously delinqent.  And home construction, while up, is still at only half of its historic average.   (Though locally, we have seen hotbeds of activity in the area.)   The traditional seller who has been holding off to sell and eventually makes the jump, will be turning around and purchasing another home.  All these factors have an impact on inventory levels remaining low. 

Of course spring market will produce more listings and create an inventory jump.  The trend we are watching for through the winter and into spring is a housing inventory shortage.

SOLD SUBJECT TO INSPECTION in West Savage! 3.56 Acre Blufftop Estate at 8800 McColl Drive

SOLD SUBJECT TO INSPECTION!   

Unsurpassable location!   This amazingly private rambler is nestled on the Minnesota River Bluff on 3.56 acres of wooded privacy in West Savage!  Located on a private road of 4 homes, few even know this home exists!

This property features a large open floor plan with wood-beamed ceilings, walls of windows, two fireplaces, a sun porch, five bedrooms and four baths.  Huge storage area, and wonderful circular drive. 

This home is just down the (private) road from (and not to be confused with) the 9.25 acre estate we sold last October, at 8900 McColl Drive.  

Scheduled to close mid-late December 2012.