REALTORS® consider February 15 the opening of spring market. Sellers typically see it differently – i.e. they associate it with visible greening grass! The reality is probably somewhere in the middle, and each year it fluctuates depending on the snowfall and the weather. This year sellers are trying the market early, and for some it has paid off. Some big homes have sold in West Savage in the past month!
We are noticing two clear trends so far this year:
1) The $300K market is moving. This segment of the market was stagnant during the foreclosure crisis, because as buyers purchased entry-level foreclosures, the transaction essentially “stopped.” i.e. these vacant homes had no sellers to move “up.” We are now seeing the $300K wheel turning nicely.
2) The senior market is very active. Seniors, particularly the 70+ demographic, are looking to downsize and simplify life. This is translating into a need for more one-level living townhomes, with or without basements.
Single family inventory in Savage has risen a bit, while townhome inventory in Savage has fallen. (Perhaps this is a testament to point #2 above.) Single family inventory Scott County (as a whole) has risen, while Scott County townhome inventory has remained unchanged. Our West Savage absorption rate is 2.40. That means if zero new homes come on the market, it will take 2.40 months to sell our existing inventory.
Comments