For the past several years, Apple Valley Real Estate has been caught up in the same forces that affect real estate nationally. Apple Valley homes have fallen in price and have taken longer to sell on the market. Apple Valley foreclosures have been up as well. In other words, the market data has clearly pointed to a buyer’s market being in place for quite some time. Finally, however, the trend line has reversed, and the market appears to be coming off the recent lows. It is unclear if the bottom of the market has arrived, or just an indication that sellers are in a wait and see mode. Buyers appear to be waiting to see if more inventory will hit the market. The 2nd and 3rd quarter of next year will reveal more of the story.
An inflection point is clearly at hand. A quick glance at the Apple Valley real estate sales figures, reveals a number of interesting trends. The glut of Apple Valley homes listed for sale is finally receding. The September 2011 figures include 306 units for sale. This represents a very heartening fall of 26.6 percent from the equivalent 2010 figures. These 306 properties comprise a 5.3 month supply of housing sales. This number is also down from its 2010 figures and represents a whopping 30.1 percent drop in inventory. What these numbers reveal is a local real estate market that is finally selling more units than are coming onto the market every month. The supply of Apple Valley foreclosures is finally running dry.
This is confirmed by the number of closings for September of 2011. The 59 completed transactions represents an 11.3 percent rise in number of sales. Add in the statistics for average days on market until sale. This has fallen to 122 days, which is a drop of 4.5 percent over the 2010 rate. As a result, this combination of rising sales and shorter time on market tracks nicely with the decrease in number of properties available on both a gross and annualized basis.
While these two sets of numbers signify a turning market, one final set of statistics seem to indicate that now is a very good time to invest in Apple Valley. Even as Apple Valley foreclosures shrink in volume and sales pick up, prices remain at reasonably low levels. Currently monthly sales figures show an approximate 15 percent drop across all indicators as compared to the original asking price. Median sales price, average sales price, and price per square foot all tell the same story of a drop from 2010 levels. Taken on their own, these numbers tell of falling real estate values but offer no clue as to how much further they still have to fall before an absolute market bottom is reached.
To find out how near real estate is to the end of the cycle, a good indicator can be the figures reported for what percentage of the original list price was achieved at sale. The September 2011 market data shows that the percentage has climbed 1.2 percent up to 90.8 percent of list price. This is a very encouraging indicator that Apple Valley real estate is just now turning upwards. Given the excellent schools that most Apple Valley homes enjoy, this area should see a recovery.
For those investors looking at the total picture, the drop in foreclosures, the rise in sales, the great schools and shopping, the decreasing time on market, and the increasing percentage of list price makes it clear that a fantastic window of opportunity is currently open in Apple Valley.
*Market Data Courtesy of Minneapolis Association of REALTORS®