July 22, 2015 Josh Sprague

Edina MN Market Update

The Edina MN housing market is one of the most stable, fundamentally strong markets in all of Minnesota.  Edina has all the basics of a high demand housing community: a top performing school district; excellent location near downtown, Southwest Minneapolis and the Lakes Area,  and within the 494 corridor; low, stable property taxes and high quality city services; premier shopping and retail at Grandview, Southdale, Galleria, and 50th & France; exemplary parks and recreational assets; and a wonderful variety of quality neighborhoods and housing stock to choose from.

At the end of December, 2014, the Edina, MN market showed its strength and surged forward with a 9% increase in median price over 2013 (from $350,000 to $380,000), and months supply of inventory rising 3% to 3 months (6 months of inventory is considered a balanced market; less than 6 is a seller’s market, more than 6 is a buyer’s market).  The sales momentum continues through June, 2015, the midway point of the 2015 Edina housing market, with a median sales price of close to $400,000.  Here is the chart of statistics year-to-date:

edina-mn-homes-market-update

Two important new developments may be important for Edina, MN home sellers looking to sell in the next few years:  days on market has risen from 85 days to 100 days, and months supply of inventory, the very basic relationship between supply and demand that reflects the trend of the housing market, has risen from 3 months to 5 months of inventory through June.  These two factors together indicate that the pendulum is slowly swinging back towards a more balanced market, after several very strong years of a Seller’s Market in Edina, where inventory was restricted, and demand was pent up and extremely strong at all pricing levels.  The chart below shows the appreciation year-over-year since 2008 in the Edina market.  You can see that the line rose sharply after the 20% price drop in 2009, followed by a continuous increase, and, now, a more stable, consistent rate of growth in price:

edina-mn-homes-market-history

Through the end of the year, and into 2016, we will see continued progress towards a more balanced market.  2015 is still a strong time to sell if you are looking to sell your Edina MN home.

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