Forest Lake, MN Real Estate Market Statistics 1st Quarter 2010

Forest Lake, Minnesota is well known throughout the Twin Cities area. Many people from the city remember the northeast St. Paul suburb fondly from years gone by as a summer vacation spot, an annual ice fishing tournament tradition or as a destination when going for a Sunday a drive in the country. Today, the lakeside cabins have been replaced with year round residences, the fishing tourney is but a memory and the farms are few and far between in this third ring St. Paul suburb. The northern Washington County and east Anoka County community of Forest Lake is now considered an integral part of the Twin Cities.

Real estate in Forest Lake, MN was still selling close to pace with 2009 in first quarter of 2010 especially in the lower price points. A total of 45 properties sold in the Forest Lake Area between January and March. Of these homes, 28 properties, were single family homes while the other 17 were townhomes, condos or twin homes.

The Cumulative Days on Market (CDOM) Statistic ran at 160 days for all homes sold during the year so it was only slightly higher for first quarter 2010 at 161 CDOM. Once again, the average price of homes did see a significant drop from in the first quarter of 2010 The average price of a home sold in Forest Lake was $176,776 in 2009 but in the first quarter of 2010, that average is now $158,756 which is another 10% lower.

Not surprisingly, the price category of under $200,000 is the high point with 35 properties sold during the first quarter of 2010 (19 Single family homes and 16 townhomes/condos). The $8000 tax credit really made an impact in the Forest Lake market as the first time buyer homes under $200,000 are not staying on the market for very long. Inventory is manageable under $200,000 with about 6 months of currently listed homes available for sale. Inventory levels are rising in other price points as homes in the $200,000-400,000 categories have exploded again to over 3 year’s worth of inventory. In the $400,000-500,000 price range, homes have seen drop in inventory levels to where there is about 18 month’s worth of inventory.

However, as for the past few years, the high end homes continue to struggle into 2010. Homes over $500,000 remain are at a complete standstill with zero homes sold in the over half a million price category in the Forest Lake area during the first quarter of 2010. Add that to the one home sold in all of 2009 and it will is difficult to calculate an absorption rate. As most lakeshore homes fall into this category, there is an abundance of high valued lakeshore homes to select from in the Forest Lake area. With one sold in the past 15 months and 34 active listings over $500,000, it will over four DECADES for all the homes to sell if sales continue at this rate.

What does this mean for the home buyer? Homebuyers in 2010 looking for homes under $200,000 will have to make quick decisions on homes in Forest Lake that appear to be good values. Lakeshore and acreage properties priced under $500,000 seem to be attractive to buyers and selling quickly again, so it is important to be prepared to buy when the right property comes onto the market.

A buyer looking to purchase high-end lakeshore in the Forest Lake area, is in the driver’s seat in 2010! With so much inventory, high-end lakeshore sellers must to be flexible on pricing if they want to be the house with the SOLD sign on their yard this summer! NOW might be the perfect time to negotiate a GREAT deal on a lakeshore home! The inventory is awesome…34 homes with are currently active in the Forest Lake area; some are at attractive and affordable price points. Many have been on the market for several months; some have been on the market for years. With the continued low interest rates it could be a great time to negotiate a deal on your piece of Minnesota shoreline!

First Quarter Average Sales Price of all homes sold in Forest Lake:

• All Homes $158,756

• Single Family Homes $182,822

• Townhomes/Condos $119,118

First Quarter Average Cumulative Days on Market in Forest Lake:

• All Homes 161

• Single Family Homes 146

• Townhomes/Condos 186

First Quarter Forest Lake real estate statistics for single family homes:

Under $200,000~ 41 Active Listings, 11 Pending Listings, 19 Sold Listings, 105 CDOM (Lakeshore Subgroup ~ 0 Active, 0 Pending, 0 Sold)

$200,000-$300,000~ 67 Active Listings, 3 Pending Listings, 5 Sold Listings, 134 CDOM (Lakeshore Subgroup ~ 1 Active, 1 Pending, 0 Sold)

$300,000-$400,000 ~ 20 Active Listings, 2 Pending Listings, 2 Sold Listings, 174 CDOM (Lakeshore Subgroup ~ 7 Active, 0 Pending, 0 Sold)

$400,000-$500,000 ~ 13 Active Listings, 0 Pending Listings, 2 Sold Listing, 535 CDOM (Lakeshore Subgroup ~ 5 Active, 0 Pending, 2 Sold)

$500,000 and Up~ 32 Active Listings, 0 Pending Listings, 0 Sold Listings (Lakeshore Subgroup ~ 34 Active, 0 Pending, 0 Sold)

Year End 2009 Forest Lake residential real estate statistics for townhomes and condos:

Under $200,000~ 30 Active Listings, 11 Pending Listings, 16 Sold Listings, 187 CDOM

$200,000-300,000~8 Active Listings, 0 Pending Listings, 1 Sold Listings, 1 CDOM

$300,000-$400,000 ~ 4 Active Listings, 0 Pending Listings, 0 Sold Listings

For additional information on any current Forest Lake real estate listing or for additional information on buying a home in Forest Lake contact Teri Eckholm/ REMAX Specialists directly at 651-336-7073.

35 Active Lakeshore available in the Forest Lake area:

Price range: $175,000-$2,300,000