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Average Home Price in Golden Valley Rises 8.7% in 2012

New numbers show the Golden Valley housing market made a comeback in 2012 and realtors expect the trend to continue in 2013.

Realtors say 2012 has been, and 2013 will likely continue to be, the closest thing to a boom market the Twin Cities region has seen in almost a decade: Prices are up, the average amount of time homes spend on the market is way down, and the number of foreclosures, which tend to depress prices overall, has fallen considerably.

Now, all the market needs is more sellers.

“We’re very encouraged by the recovery we saw in 2012,” said Andy Fazendin, president of the Minneapolis Area Association of Realtors (MAAR), at a news conference to announce the organization’s annual market-results survey. With the area’s economy recovering and interest rates at historic lows, “we clearly saw behavior (among buyers) change from the start of 2012 to the end of 2012.”

The result: The average sale price of a home in Golden Valley rose 8.7 percent during 2012 to $254,006. The increase follows a drastic 15 percent drop in prices last year.

The number of days homes spent on the market dropped dramatically: In Golden Valley the average home sale now requires 121 days, a 27 percent drop from the 166 days required to sell a home at the end of 2011.

Even with the spectacular rebound in prices, however, prices have a long way to go before returning to the values of the past decade. The Twin Cities’ region overall median price at the end of 2012 was $167,900. That’s way up from the $150,000 median of a year earlier, but at its peak in 2006, the median hit $230,000.

As a result, many homeowners are apparently still reluctant to list their properties for sale, Fazendin said. Inventory is at a 10-year low, and some people who want to buy homes “are writing four or five offers (and) still not getting a house.”

In Golden Valley, there were 113 homes for sale at the end of 2012, down 30 percent from last year.

Fazendin believes the problem will self-correct, however.

“Sellers soften trail buyers” in getting excited about the market, he said. In 2013, he expects the median price across the region to grow an additional 8 percent to 13 percent, which should result in more “For Sale” signs sprouting up.

The recovering market should also prompt a big increase in new home construction across the region, said Kate Beckman, president of the St. Paul Area Association of Realtors.

“We’ve seen a great increase in activity,” Beckman said. “We believe new construction could surge 25 to 35 percent in 2013.

There’s a lot of “pent up excitement among our agents,” she added. “We had full parking lots in our offices in December. That’s unusual.”

Chris Deutsch January 18, 2013 at 07:48 PM
Indeed, the average sale price in my hometown of Golden Valley for 2012 for all types of homes combined was $254,006. As a Realtor, I find it better to look at the median sale price, (the price where half of homes sold for more and half sold for less) which in Golden Valley was $218,500 for 2012. Using the average price, the data can be skewed. For example, one sale of a mansion for a million dollars (like the bank-owned one at 1801 Noble, currently listed for the bargain price of $1.3 million) can wildly raise the average sale price. Here is a breakdown of the median sale price of Golden Valley homes by property type for 2012 in GV: Median price for all property types combined (houses, condos and townhomes) was $218,500, an increase of 9.8% over 2011. Single-Family Detached: $239,750 +15% Condos: $126,000, +55% Townhomes: $130,400 +4% As of today, there were 90 homes for sale, of which, 25 are “pending” (meaning they they’re set to close). The inventory of homes for sale in the Golden Valley area is at a record low, which will encourage higher prices as all kinds of buyers scurry to find their dream home. It has become a sellers market. Here is a link to the source I created for today’s statistical analysis: http://thething.mplsrealtor.com/Service/s/mlp-I8J/0.png

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