Average Sale Price for Homes Continues Long Term Slump in Inver Grove Heights

On the surface, it looks like a bit of welcome good news for the local housing market: The average sales price of homes in Inver Grove Heights rose by 23.2 percent this August, compared to the same month last year.

But pan back to take in the bigger picture, and the statistics aren't quite as rosy. Year to date in 2011, the average sale price for homes in Inver Grove Heights has fallen roughly 7 percent compared to the same period last year—from $206,009 in 2010 to $190,943 so far this year.

Those numbers came from the Minneapolis Area Association of Realtors monthly Housing Market Update report, which tracks regional and local trends and sale numbers. According to the report, the average number of days a home stays on the market until it is sold has increased 2.4 percent over the year to date last year.

The inventory of homes for sale in Inver Grove is also up slightly compared to last August—which is bad news, since those numbers are an indication of supply and demand and thus, home prices.

The August report isn't all gloom and doom: So far this year, the number of homes sold in Inver Grove Heights is has risen marginally from the year to date in 2010—a lone bright point in an otherwise dreary local market.

Regionally, the decline in the average sale price for homes so far this year was down 7.7 percent, compared to the same time period last year, while the average number of days on the market rose from 125 to 146.

However, regional absorption rates—often a precursor to price movement—showed improvement for the second consecutive month, according to a press release issued by the Minneapolis Association of Realtors. There are currently 7.1 months supply of inventory, the release said, which is just outside of the ideal range of 5 to 6 months often used as the measure for a balance between supply and demand. That's down 18.9 percent from last August and marks both the largest decline and lowest level in 18 months.

"Less inventory means less competition among sellers in a marketplace slowly transitioning from the buyer's favor to one of balance," said Brad Fisher, the president of the Minneapolis Area Association of Realtors.

To view the reports, click on the images in the upper right portion of this page.