Why this is important
Median home prices (the point at which half the homes sold are above and half are below) and the median assessed market values (the point at which half the assessed values are above and half are below) are indicators of the health of the housing market. They correlate to the tax base provided by the households and the affordability of the housing stock.
What the data show
The median sales price1 for residential property in Dakota County has been consistently higher than in the 13-county Metropolitan Statistical Area over the last decade. Not including foreclosures, decreasing median home prices between 2007 and 2012 suggests that foreclosures are not the only factor driving down home prices in the County. Weakened demand due to lack of access to credit or an over-supply of homes for sale could also drive down prices. The median sales price of residential property (not include foreclosures) in Dakota County increased 2.3% between 2012 and 2013 – sign of economic recovery. When sales of foreclosed homes are included, Dakota County home prices seem to be mirroring a trend seen across the metropolitan area as a whole. Between 2007 and 2011, home prices decreased 32% in Dakota County, similar to a 33% decrease across the metropolitan area. However, there are signs of recovery in home values. Over the last two years, home prices increased 28% and 27% in Dakota County and the metro area, respectively.
This chart shows sales prices by range, at the time of the sale closing, for residential properties in Dakota County from January 2005 to January 2014. The number of closed sales for residential properties (at closing) below $144,899 has decreased since mid-2012, while closed sales for properties above $144,900 increased in 2012 and continued into the first part of 2014. In January 2014, there were 1,534 closed sales for properties below $144,899. The 2012 and 2013 estimated median home values in Dakota County were $170,359 and $200,000, respectively.2 According to the Minneapolis Area Association of Realtors, there were 1,233 sales of foreclosed properties in Dakota County in January 2014.
1 Including single-family detached, condominiums, new construction, previously owned, foreclosures and short-sales.
2 Minneapolis Area Association of Realtors – 2013 Annual report on the Twin Cities Housing Market