Is the Stillwater Market Going to Crash? #mondaymarketupdate
The following is a transcript from this video:
Hey everyone! Roddy MacDonald here with
Edina Realty. Today is May 4th so... May the 4th be with you! Today I just want to
talk about what we're all thinking about which is the real estate market, how's it
doing? Considering it is the beginning of May we can take a look back at April's
numbers, and figure out where do we stand? You know, during this whole coronavirus thing
that's been going on a lot of folks have been wondering, is this going to cause
a housing crash, a recession in the housing industry and what's that going
to look like for me. Now I've been telling you, if
you've been listening, or have asked me that you're going to be just fine. There's
way too much demand in the marketplace for this whole thing to just fall apart.
So today we're going to take a look at a few stats and kind of paint a picture of
what that looks like for you. So, the first thing that I want to look at is
the median days on market. Now this is in 55082 which is Stillwater,
Stillwater Township, Grant. This essentially paints a picture of what
we're looking at market wide in the St. Croix Valley. The first statistic is
median days on market for resale properties. So, resale would be you if you
own a house and you were thinking about selling it. It's just everything except
for new construction. And we're sitting at 33 median days on market, which if
you've watched the market over the past ten years that's a fantastic number. That
means that things are selling at a good pace. you don't have to worry about long
marketing times if you are priced appropriately. The next stat is median
sales prices. So, even with that number we’re taking a look at median sales
prices were up a little bit. We're at 351k, last month it was 350k. So next thing
that we want to look at is showings which obviously showings are down in
this pandemic that we're in. Most people are locked in place at their homes.
But I want to say that it's really not that big of a deal, because even if
showings are down, you know on average one showing a month, we're doing really
well as a marketplace with virtual showings and virtual open houses. And
since we are down from last year’s numbers at this time by one showing a
month, it's probably the people that weren’t pre-qualified and maybe
shouldn't have been looking at the house anyways. So, I think that's a good stat.
The last statistic that we should look at is the month supply. So, a months'
supply is this: Essentially, it’s representative of the demand in the
marketplace. And with this statistic the lower the number the better. Back in 2010
when I first got started in real estate, months' supply rates were 12, 14... So, there was a lot of inventory on the market it was
not moving. But ever since then it's just been steadily dropping. And you can see
here that the numbers, again, are showing a lot of promise. That's why I tell
people so if we're sitting right now at a 2.7 on months' supply that means if
nothing else came on the market today, it would take 2.7 months for all of
the inventory to sell off. And that’s a drastically low number. That's a
very good number. Anything under four would be considered a seller's market so
we are still very highly in a seller’s market. And as you can see the trend is
to continue going down. So, the end of multiple offers and 15 showings
in the first weekend, those days are not gone. And if you, in fact, we're looking at
potentially selling and you'd like to do a virtual price analysis of your home, we
can set that up. Just give me a call anytime, stop by the website, shoot me an
email, shoot me up private message, however you
want to get in contact with me. Thanks!