Bemidji Summer In Review

Summer in Northern Minnesota is always busy.  If you've ever spent a winter in Minnesota, you know that once summer hits you better enjoy every moment to the fullest before winter strikes again!  Between catching every ray of sun I could and selling houses there wasn't much time left over to blog, but the good news is I'm back!  I'm sure you are wondering how the Bemidji real estate market fared this summer. The verdict is in and it was better than last year!  Many real estate agents in the Bemidji area believe we have hit rock bottom and we are on our way back up, or that at least we have leveled out.  I analyzed the MLS statistics for residential home sales in Bemidji between May-August 2012 comparing it to that same time period last year and this is what I found.

Bemidji Summer 2012 vs Summer 2011:

13% less homes were listed
3% more homes sold
6% increase in average sales price
148 average days on market- no change

The most interesting statistic I found was the change in the average sales price.  The average sales price of a single family home in Bemidji rose from $154,006 last summer to $163,894. I believe that this is due to the fact that home buyers are able to get a larger mortgage than in past years because of the unbelievably low interest rates.  In 2010, the average sales price in Bemidji price was $149,241.  What this means to me is that buyers are spending more on their home.  It does not necessarily mean that homes are appreciating; however supply and demand can effect appreciation.  A lack of quality inventory in a certain price range can result in a buyer paying more for a home because of lack of a better option and possible multiple offers.  National statistics show that homes are still depreciating by 3% per year.  Hopefully this will be the last year that we see a negative change.  Here's to enjoying the fall and looking forward to positive changes in the future!