POTW | Fridley

By David Arbit on Monday, July 13th, 2015

Bordering a multitude of cities including Minneapolis, Fridley was first incorporated in 1949. It was originally settled around the time of the construction of the Red River Ox Cart trail in 1844, which traveled along what is now East River Road.

Today, Fridley is home to several large-scale regional employers including Medtronic, Cummins and Target. Its central location and Northstar commuter rail station both serve the community well.

Home prices in the city have been rising since the beginning of 2012, which is consistent with the rest of the metro area. The median home price over the last 12 months is $168,300, a 7.2 percent increase compared to the same period last year.

Ever wonder what closed sales might do next month or in the near future? Simply look at pending sales activity today. This chart shows pending sales broken down into two price ranges: under $170,000 and over $170,000—essentially straddling our median sales price for the area. It appears as though the two trendlines might cross.

To confirm our suspicion, we simply switch to pending sales and we can see that those trendlines have in fact already crossed according to the pending data. This also tells us that there are soon to be more sales above the current median than below, which signals to us that continued price gains are likely.

Looking for more evidence of that? Traditional sales are making up a larger and larger share of the pie while foreclosure and short sales are both losing market share also suggests that more higher-priced homes are selling, which should continue to bolster prices.