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FOR -SALE MARKET ANALYSIS Introduction Maxfield Research and Consulting LLC analyzed the for -sale housing market in Elk River by analyzing data on single - family and multifamily home sales and active listings; identifying pending for -sale developments; and conducting interviews with local real estate professionals, developers and planning officials. Overview of For -Sale Housing Market Conditions Table FS -1 presents home resale data on single - family and multifamily housing in Elk River from 2000 through June 2015. The data was obtained from the Regional Multiple Listing Services of Minnesota and shows annual number of sales, median and average pricing, average days of market, cumulative days on market, and percentage of sales that are lender- mediated (i.e. short -sale or foreclosure). It should be noted that lender- mediated sales were not categorized until July 2008 and the cumulative days on market were not calculated until 2006. Table FS -2 breaks down resale activity from Table FS -1 into single - family and multifamily resales. The following are key points observed from our analysis of this data. Like across the Twin Cities Metro Area and the nation, pricing peaked in 2005 & 2006 at the height of the real estate boom. The average and median sales price plateaued at roughly $254,000 and $234,900 respectively. For comparison, the Twin Cities Metro Area median sales priced peaked at $230,000 in 2006. Between 2000 and 2005, the median sales price increased annually from $159,000 to $234,900, a gain of 48 %. However, from 2005 to 2010 the median sales price declined to $160,000 ( -32%). Since 2010, home resale prices have increased significantly rising to $209,975 (31 %). Sales prices increased between 2009 and 2010, mostly a result of the first -time homebuyer tax credit that was available in the second half of 2009 through September 2010. The tax credit also spurred transaction activity, resulting in nearly 400 sales in 2009 (17% over 2008 sales). However, the sales price was at its lowest in 2009 at $132,000. Since 2011; the median sales prices has rising annually and is at $209,975 ( +59%). • The average number of resales has averaged about 405 sales annually during the last decade. So far through June 2015, the number of sales has averaged 391. The years of 2013 and 2014 showed substantial improvement in sales from early this decade. • The number of lender- mediated properties accounted for over one -half of all home transactions between 2008 and 2012; peaking in 2010 and 2011 at 70 %. Since 2012, the number has come down substantially and was at about 12% through the first half of 2015. MAXFIELD RESEARCH & CONSULTING, LLC 59