9.1 HRSR 05-01-2017 - Laserfiche WebLink

Home Browse Search

FOR -SALE MARKET ANALYSIS • For comparison, the median PSF cost for housing in the Twin Cities is $113 PSF for an existing home and $152 PSF for new construction. Existing construction is about 18% less than the Twin Cities median; however new construction is only about 8% less PSF than the Twin Cities median. Current Supply of Homes on the Market To more closely examine the current market for available owner - occupied housing in Elk River, we reviewed the current supply of homes on the market (listed for sale). Tables FS -5 through FS -8 homes shows currently listed for sale in Elk River. The data was provided by the Regional Multiple Listing Services of Minnesota and is based on active listings in August 2015. MLS listings generally account for the vast majority of all residential sale listings in a given area. Table FS -5 shows the number of listings by property type (i.e. single - family, town home /twinhome, or condominium) while Table FS -6 shows listings by home style. The following points are key findings from our assessment of the active single - family and multifamily homes listed in Elk River. • About 150 homes were listed for sale in Elk River as of August 2015. Single- family homes accounted for 73% of all active listings. The remaining listings are townhomes (27 %). There were no condominiums listed. The median list price in Elk River was $245,960 for single - family homes and $215,725 for multifamily homes). The median sale price is generally a more accurate indicator of housing values in a community than the average sale price. Average sale prices can be easily skewed by a few very high - priced or low- priced home sales in any given year, whereas the median sale price better represents the pricing of a majority of homes in a given market. • Based on a median list price of $245,960, a household would need an income of about $63,225 in order to afford to make monthly housing payments of about $1,581 (assuming a 10% down payment, 4.00% 30 -year fixed mortgage). A household with significantly more equity (in an existing home and /or savings) could put more than 10% down and afford a higher priced home. About 67.8% of Elk River's non - senior households have annual incomes at or above $63,225. • About 21% of listings in Elk River are priced under $175,000 and none of those listings are priced under $100,000. Homes priced from $200,000 to $299,999 account for 45% of those listed in August 2015. Higher priced homes ($300,300 to $399,999) consist of 21% of the listings and those $400,000 constitute 7 %. MAXFIELD RESEARCH & CONSULTING, LLC 67