Eagan, MN real estate

Eagan, Minnesota Real Estate Market Monthly Update – July, 2008

The new real estate sales numbers through the end of July for the Twin Cities and all of our various suburbs are out! In today’s blog entry, we wanted to take a look at the great city of Eagan, Minnesota. Eagan is located southeast of downtown Minneapolis. It is very close to 35E, 494 and Cedar Ave, with close proximity to both St. Paul and Minneapolis.

First of all, let’s see what happened in the month of July in 2008 compared to July of 2007 for overall real estate activity. This past July, there were 142 new listings put onto the MLS, a decrease of 9% compared to 2007. Closed sales in Eagan were down 31.7%, with 56 properties closing in July of 2008. The average sales price did drop by 8.3%, going from $274,277 to $251,462. The percent of list original list price received at the time of sale dropped 0.3%, going from 95.2% to 94.9%. In Eagan, the average days on market is up 4.1% to 117 days. Thankfully, the overall inventory level for single family homes in Eagan was down 23.6% in July of 2008, with 211 properties on the MLS. The townhome and condo market also saw a sizable decrease in active listings for sale in July of 2008 (10.1%.)

Let’s now look at year to date numbers, comparing January through July of 2007 to 2008 at the same time. New listings put onto MLS are down 15.7%, with 998 new listings being processed this year. Closed sales are down by 19.5%, with 380 properties closing here in 2008. The average sales price did drop as well, from $266,105 to $249,118. This is a 6.4% year over year drop. The percent of original list price received at the time of sale dropped 3.3%, from 96.5% to 93.2%. In Eagan, the average days on market increased by 31%, going from 112 to 147 days.

In conclusion, these numbers are not great news of course. With closed sales down almost 20% year over year, and the average sales price down over 6%, there definitely has been a “correction” that has taken place. As a buyer of course, these market conditions are creating a plethora of opportunities. And the knowledge that the Twin Cities market as a whole has stable fundamentals for long term growth: population increases projected and a solid job base as well. As a seller, realize that homes in Eagan are selling, just not at the same pace as last year. Patience is crucial in this market.