As we transition into the new year, the market inventory continues to remain low, with only three active listings in West Savage, two pending sales, and four closed transactions. In The Pointe neighborhood, there is one active listing, one pending sale, and one recently closed sale. The home on Nevada Circle is active with an accepted offer contingent on inspection. You’ll also notice 8800 McColl Drive just sold – this is one of the four homes on a private drive that overlooks the bluff on the north side of McColl. This home was bank-owned and sold for $70,000 over list price.
In taking a look at the month’s supply of inventory, we ran numbers for Savage and Prior Lake. The latest reports show that when looking at the existing and new construction housing stock priced from $350,000-$400,000, there is a 2.2 month supply in both Savage and Prior Lake, indicating a market in favor of sellers in this price range. That number balances out for homes priced between $400,000-$500,000, with 5.3 months of inventory available in Savage, and 4 months of inventory available in Prior Lake.
The new construction inventory in Savage is sitting a little longer on the market. Savage’s new builds priced between $400,000-$500,000 are on the market an average of 164 days, compared with only 55 days for existing properties. Prior Lake new construction between $400,000 and $500,000 shows a much lower market time of 37 – simply because there are far fewer homes available. Savage’s new construction priced from $500,000 to $600,000 shows fewer days on market, at only 66 days. This is likely because most of these homes are under contract before they are recorded on the MLS (compared to the $400,000 to $500,000 price range, where the new construction listings are entered in great volumes to entice the larger pool of buyers often found in this pricepoint to come and explore the development.)
Lastly, both Savage and Shakopee are offering new construction between $350,000 - $400,000. Some of these are splits, most have unfinished lower levels, and most are simplistic in design, yet all offer buyers an opportunity to get into a new home for under $400,000 should that be their goal.