July is the beginning of the yearly slow in residential real estate sales, which means inventory increases and the buyer pool decreases. According to the Multiple Listing Service (MLS), there are 282 Active Listings, in Chisago County, and 105 of those show price reductions since they were listed. Price reductions started as soon as 10 days on the market, but the majority dropped their price at about 30 days on the market. The median marketing time for the Active listings is 56 days. The median price is $319,900.
There are currently 119 Pending listings on the MLS. This means there is a contract with no contingencies than financing and title work. The median days on market for the Pending sales is 24, and the median list price is $267,000, which is 20% lower than the homes that haven’t sold.
According to the MLS, there were 144 new listings, in July, in Chisago County and 49 of those sold in the same month. Three of those listings were cancelled or expired. Twenty-Five of the July listings were new construction and 7 of those sold. The median list price of the July listings was $292,949 and the median list price, of those that sold, was $243,800.
You can see the homes going on the market have a much higher median price than what the buyers are purchasing (the Pending sales). One reason for the high prices is because March, April, May, and June typically have the most sales, the lowest inventory, and the highest prices because of multiple offers. It usually takes 30-60 days to get most homes closed. Selling prices aren’t disclosed until a sale is closed, so when agents do their market analysis, they are using the high sale prices, in the Spring, which doesn’t take into consideration the current market activity.
There are still many homes that sell quickly. A lot of new construction sales don’t go on the market until they are sold, so they may show up with zero days on the market. There is a shortage of lake homes, first time home-buyer homes, and affordable one level living homes.
New listings normally slow-down in the fall, and many existing listings will expire, which will help reduce the inventory, so the sellers that need to sell should be able to.
An experienced real estate agent will continue to provide you with market data, while you are on the market, to determine if a price reduction could help you achieve your goals.
Ask the Real Estate Agent is a weekly column by Cheryl Kempenich of Coldwell Banker Burnet, who lives and offices in the Chisago Lakes Area. Submit your questions to firstname.lastname@example.org. All information is deemed reliable but not guaranteed. For legal assistance consult an attorney.