Charming and beautifully combining a rich heritage with a dynamic, contemporary lifestyle, Chaska, Minnesota, is comfortably nestled in the southwest metro area of the Twin Cities. Chaska enjoys a robust and enviable sense of community, all of which is a testament to its adorable small-town charm. The city boasts a population of just under 30,000 residents and enjoys both a measured and sustainable growth rate.
With the flowing water of the Minnesota River flanking it on the east, Chaska offers a picturesque landscape beautified by plenty of green spaces, parks, and lakes, offering innumerable opportunities for outdoor recreation, be it biking, hiking, fishing, or golfing. In fact, the city's award-winning golf course, Chaska Town Course, is a significant draw for golfing enthusiasts; the greens here are regionally renowned and celebrated.
Chaska's stately, historic downtown scene provides many amenities. Quaint shops, mouth-watering dishes at various restaurants, and welcoming events reflect a dynamic, lively community fabric. The city also enjoys excellent schools and easy access to the Southwest Metro Transit system, making commuting to the Twin Cities and other nearby urban areas convenient and stress-free. Moreover, Chaska enjoys a thriving job market and is home to numerous businesses, including several Fortune 500 companies.
Thanks to its rich selection of offerings for residents and visitors alike, mixed with an exciting real estate market, Chaska exemplifies and embodies a thriving, small Midwestern city. If you’re interested in the Chaska real estate scene, read on for an overview of market dynamics and what you can expect.
Trends and tendencies affecting the Chaska real estate market
The data describing the dynamics of the Chaska, Minnesota, real estate market in 2023 points to rising prices and decreasing sales activity. One major trend is the decrease in new listings and closed sales, which are each down by 5% and 24%, respectively, over the past 12 months. This downturn in listings and sales volume implies buyer hesitation, perhaps due to a variety of factors, such as rising interest rates, inflation, fewer homeowners opting to sell, or even a slowdown in new construction.
Housing prices on the rise
Despite the reduction in closed sales and listings, Chaska has experienced a modest increase in both median and average sales prices. Within the past 12 months, the median sales price has risen by 4.7% up to $415,000, with the average sales price also rising by 7.1%.
Time on the market
That being said, a more in-depth look at the data points to indicators of a slight cooling off, where the percent of the original list price received reports a decrease of 2.9%. This means that many sellers are receiving a little less than their original asking price compared to the previous year.
Even further, the number of days that listings are spending on the market until the sale has increased by 85% over the past year, currently sitting at 37 days. What does this mean? Properties remain on the market nearly twice as long as in the same period last year, perhaps signaling that either buyers are becoming choosier or negotiation processes are taking longer.
Supply and demand
Lastly, the inventory data tells an interesting story. There has been a significant increase in the inventory of homes for sale in Chaska (by 54.7%). In addition, there are currently 2.6 months of inventory available, which is up by a considerable 116% compared to June 2022. These data points translate to an expansion in available homes in the Chaska real estate market. Contrast this with the decrease in new listings and closed sales mentioned earlier, and you can see that the more significant supply of available homes is due to properties taking longer to sell.
In sum, the Chaska real estate market is experiencing a state of flux. This takes the form of a downturn in sales activity, blended with hiking property prices and extensive growth in available inventory. Above all, these tendencies underscore the importance of buyers and sellers remaining informed about market trends and, equally important, working with a reliable, skilled real estate professional who can provide guidance.
Forecasting and predicting
Given the above trends evident in the Chaska real estate market, the forecast for the rest of 2023 is cautiously optimistic but also projects some potential changes in market dynamics. The consistent and steady rise in median and average sales prices implies that home values will probably continue to rise throughout the remainder of the year. However, it is worth mentioning that this will occur more gradually than in previous periods. This is positive news for homeowners interested in selling, as there is likely to be a high return on their investment.
However, the market has also shown signs of rebalancing. For example, the increase in days on the market, the drop in closed sales, and the decrease in the percent of the original list price received indicate a dulling of buyer demand or more negotiations regarding pricing. Should this trend keep up, prepare for a gradual shift in the direction of a more balanced market in which neither buyers nor sellers enjoy a definite advantage.
Inventory for buyers, months of supply for sellers
The increased inventory of homes for sale suggests that buyers will benefit from more comprehensive options over the rest of the year. However, it’s important to note that with only 2.6 months of inventory available, this is not a truly balanced market, and these particular scales are still weighted in favor of sellers.
When it comes to closed sales and new listings, the decrease of late could reverse course and rebound should more homeowners decide to take advantage of the strong seller's market and put their properties up for sale.
The value of a high-quality team of real estate professionals
If you want to find your dream property among the homes for sale in Chaska, Minnesota, turn to the expert, well-reputed real estate professionals at Chestnut Realty. The professionals at Chestnut Realty have an unrivaled knowledge of the region's market, vast years of experience, and a steadfast commitment to client satisfaction. Contact the Chestnut Realty team today to get started.
*Header photo courtesy of Chestnut Realty