The real estate market is a constant topic of discussion, especially with recent headlines suggesting a drop in the median asking price of homes compared to last year. While it's easy for buyers and sellers to think that home prices are falling, the truth is more subtle. In Otter Tail County home values are on the rise, even if the median price seems lower. Let’s delve into what's truly influencing the market here, so you can navigate it confidently without falling prey to misleading headlines.
Homes Are Getting Smaller
One major factor contributing to the decrease in median asking price is the size of homes being listed. The median price is influenced by the types of homes available for sale, and currently, Otter Tail County is seeing an uptick in smaller, more affordable homes on the market. There's been a 5% increase in homes priced between $200,000 and $399,000, while those priced above $400,000 have seen a 2.8% decrease.
Another major factor is the amount of homes that are actively listed. Otter Tail County homes that are actively listed with 2,500 square feet or less have doubled since February 2024, totaling 188. This shift towards smaller homes brings down the median price, but it doesn’t equate to a drop in actual home values.
Rising Price Per Square Foot
To grasp the true value trend in the housing market, consider the price per square foot—it’s a far better measure of property value. In Otter Tail County homes that have recently sold are at a price per sq foot of $165.40. This number is up 5% compared to a year ago.
This data is from FLEXMLS based on OTC Jan 1st, to Oct 15th of 2024 and 2023.
This increase reflects a healthy and growing market.
The Takeaway
A lower median price doesn’t necessarily denote a decline in the value of Otter Tail County homes. It's primarily due to the presence of more compact, cost-effective homes in the current market. Focus should remain on the price per square foot, which continues to climb, signaling sustained value growth for homeowners. If you're curious about home values specific to your area, I recommend reaching out to a local real estate expert for tailored guidance and insights.
