The spectacular housing boom in Plymouth, MN continues unabated. I was just checking the MLS this morning and found that the new homes are still dominating the market. It appears there is almost no interest in older homes priced over $500,000.
My search was in the price range from $500,000 to $800,000. There are 72 homes currently for sale right now. There are 28 homes that are pending meaning they have a contract on the home and they are working their way toward closing. Below is a breakdown of the 28 pending homes by year built:
- 1978 – 1
- 1994 – 1
- 1995 – 1
- 2006 – 1
- 2009 – 1
- 2010 – 1
- 2011 – 22
Source: RMLS 13 County Metro, search run by John Murphy, RE/MAX Results on 5-4-11.
I realize that sellers won’t agree with what I am about to say, and I suspect many agents won’t agree either, but if the market is not interested in older homes, their value proposition needs to significantly change either by taking a price reduction or making some substantial improvements/updates – or both.
I have never seen such a disparity in housing stock as we are seeing now. They can’t build new ones fast enough to meet market demand for new homes priced between $500,000 to $800,000 and they can’t give them away in this price range if the homes are say 15-40 years old of which there are many in Plymouth, MN
[...] race to retirement and want to sell their 4,000 – 5,000 square foot homes in the suburbs. Who will buy these homes? I believe this is part of the difficulty and indigestion we’re experiencing in the market [...]