Shakopee Townhomes Values

Shakopee townhomes for sale have gone on a bit of a roller coaster ride over the last 20 years, they might as well have gone to Valleyfair.  I have analyzed numbers very thoroughly and from a town that had as few as 8 Shakopee townhomes sell back in 1992, to 445 Shakopee townhomes sold in 2005 the townhomes for sale in Shakopee have leveled slightly.

We have seen a lot of new construction in Shakopee after the highway 169 Bloomington Ferry bridge was built in 1996. Up until 1998 Shakopee townhomes had seen only 135 townhomes sold in the previous six years per the Minnesota MLS statistics. Then in 1998, 159 townhomes sold representing almost 35% of the total Shakopee homes sold that year. The average sales price for a Shakopee townhomes in 1998 was $107,890. Average market times were only 60 days and average square footage was for those townhomes in Shakopee was only 1027 sqft, making the average price per sqft to be $105.05.

The Shakopee townhome market exploded from this point on as many more townhomes were to be built. The city temporarily thought about a moratorium of townhomes in Shakopee being built, but then decided not to impose. The number of townhome in Shakopee built in 2001 rose to 249 homes sold representing almost 38% of the total market. Average sales price had climbed to under under $150,000 and the average days on market fell to just 24 days. The boom was definitely here and sqft increased to an average of 1338 per townhome.  The Shakopee real estate market and Shakopee townhome market peaked in 2004-2006. 2004 led to a high of almost  49% of all homes in Shakopee sold that year on the Minnesota MLS to be townhomes. 2005 brought an all time high of townhomes in Shakopee sold through the Minnesota MLS, 445 townhomes. In 2006 values had peaked, with average sales prices just over $192,000, meanwhile average days on market increaseing  48 days more days from the previous year to 107 average days on the market. Through these three years the average price per square foot had almost tripled from 1992 values of $42.57 per sqft, to just over $125 per sqft.

Come 2008, much fewer Shakopee townhomes were selling and bottomed at an eightyear low of only 201 townhome in Shakopee sold that year. Average sales prices had significantly decreased since their peak of just over $192,000 to an average sales price of $161,403. This was over $25,000 less in just a years time than the 2007 average sales price of $186,687. Most assumed this was the worst however Shakopee townhome values again plunged the following year even worse, decreasing on average over $33,500! This brought the average sales price of a Shakopee townhome to $127,782.

We saw signs of hope in 2010 with Shakopee townhome values finally increasing for the first time in three years after a rapid decrease in values to an average of $132,533, but so far in 2011 it appears as though we are seeing a double dip in pricing.I had put together some numbers from the Minnesota MLS and so far in 2011 23 townhomes in Shakopee had sold with an average sales price of $109,718. Days on market had steadily increased over the last 10 years and reached close to the average days on market of 1992 with an average time of 152 days. Per per sqft has dropped to $72.90 per sqft, close to values in 1995-1997. Although we have not had average sales prices fall to those points, our townhomes are much larger today.

There are signs of hope for those looking to buy while starting their home search and those looking to rent their townhome in Shakopee. Shakopee townhomes are priced so aggressive today I feel there is a huge upside potential. You can currently buy cheaper than you could rent townhomes in Shakopee. The rental market is great as well. With Shakopee being relatively close to shopping, Minneapolis, lakes and many activities more and more are moving to the area. Shakopee also has a lot of job opportunity in the area with large companies like Seagate, Mystic Lake, Canterbury, Valleyfair and more. Shakopee has a transit as well for an easy commute to downtown.

Still remain cautious because I see two potential problems we could see down the road. One deals with financing for future buyers, and the other deals with increased association dues. Many current owners who have moved to single family homes are renting their Shakopee townhomes. Some aassociations have become a bit more lenient with their covenants pertaining to how many townhomes can be rented.  Because of this and the increased Shakopee foreclosures and short sales, some Shakopee townhomes down the road may be hard to get bank financing. Lenders look at an area with high foreclosure rates and rental rates as more of a risk and may not offer some loan programs in those development, primarily those legally defined as a condo. Most developments with Shakopee townhomes actually are classified as a condo. If you own a Shakopee townhome, look at your legal description and if you see CIC, likely it is a condo. Those townhomes in Shakopee that have a lot and block, likely are classified as a townhomes. The other area for potential future concern would be  inflated association dues. Some associations are in great standing because they have not had many foreclosures. Stone Meadows one level townhomes for example I know are in great standing while keeping their dues low at $115 per month. Other townhome areas I know have increased their association dues above $200 per month when previously the average was in the $125-150 range.  Some association are charging extra month assn dues if you rent your townhome. I don’t think that is necessarily bad because some area have amenities like community park or pools and hopefully 10-15 years down the road the won’t need to get a bond to replace roofs or siding. Make sure when search for your next home or Shakopee townhome you talk to you local Shakopee Realtor and make certain you review the associations financials and covenants. In Minnesota you have 10 days to review all such documents per a condo/ townhome addendum your Realtor should add to the Minnesota real estate contract.

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