West Savage - Then (2009) and Now

By
Real Estate Agent with Edina Realty

By Chad & Sara Huebener

 

New inventory in West Savage has risen.  Most new listings that have hit the market are either a) relisted homes that previously canceled or expired, and/or b) ramblers, which now make up 36% of total West Savage inventory.  Buyers for the rambler market are working on selling their two-story home right now, so ramblers are competing ferociously for the two-story seller who does plan to buy a rambler as their next home. As a side note, all listed rambler inventory in Woodhill (as of today) is being sold "short." 

 

We thought it would be interesting to look at the August numbers from 2009 to compare with August 2010.   Hesitancy in entering the market was more apparent in 2009 than this year, with only 15 current listings and 4 new listings in 2009.  (That is understandable, as winter of 2008 was rife with foreclosures.)  However sales in 2009 were up, with 8 pendings and 4 solds in August of 2009.  The primary reason we attribute to this interesting set of statistics is the $8000 tax credit (the $6500 tax credit was not in place in August of 2009).  In 2009, first-time homebuyers were purchasing entry-level homes and those sellers could move up (into the West Savage price bracket.)   Beyond that, it's' hard to say.  Foreclosures and short sales cooled significantly this spring when most sellers re-entered the market, but the tax credits went away.  

 

This weekend the Star Tribune presented two cases of underwater homeowners.  One was walking away from the home; the other was opting to stay.   The article discussed underwater homeowners as more likely to not care about their credit if they choose to walk away, or to "behave like renters" and avoid doing home improvements if they choose to stay.   This is a hotly contested and debated topicRenters Our standpoint has always been that if everyone who was underwater chose to walk away, our market would collapse, and those who are underwater and choosing to stay should continue to improve and care for their home as if they had equity. Doing so maintains neighborhood quality and preserves future value for the homeowner. 

 

Single family inventory in Savage has increased.  Scott County (as a whole) inventory has declined.  Our West Savage absorption rate is 8.33.   That means if zero new homes come on the market, it will take 8.33 months to sell our existing inventory.   

 

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