The Skinny

Weekly Market Activity Report

Science fairs, book swaps and spring sports have kept winter-weary minds off of what superficially appears to be a mixed beginning to what is typically a cheery second quarter. Most economists, however, believe that the coalescence of market normalization, an improving sales mix and good housing starts are all working behind the scenes to alleviate the growing pains of a market in recovery. Housing is already starting to see signs of upward price pressure, rising consumer confidence and some inventory relief.

In the Twin Cities region, for the week ending April 19:

• New Listings decreased 2.8% to 1,571 • Pending Sales decreased 5.3% to 1,227 • Inventory decreased 0.5% to 14,148

For the month of March:

• Median Sales Price increased 7.6% to $189,950 • Days on Market decreased 12.0% to 95 • Percent of Original List Price Received remained flat at 95.0 • Months Supply of Inventory decreased 6.1% to 3.1

Weekly Market Activity Report

 There's no dainty tiptoeing through the tulips this spring, as market flower fields are blooming with speculation. Sales and new listings are up, and hope for a fluorescent spring market is flourishing. An increase in inventory is the desire at this point in the season, as more properties for sale should nudge first-time home buyers to sow their fledgling seeds in the housing market and encourage move-up buyers to say goodbye to familiar flower beds in favor of an upsized plot across town.

In the Twin Cities region, for the week ending April 12:

• New Listings increased 19.9% to 1,925
• Pending Sales increased 1.8% to 1,157
• Inventory decreased 2.4% to 13,736

For the month of March:

• Median Sales Price increased 7.6% to $190,000
• Days on Market decreased 11.1% to 96
• Percent of Original List Price Received remained flat at 95.0
• Months Supply of Inventory decreased 6.1% to 3.1

 

Weekly Market Activity Report

 

April reporting brings hope as tulips and FOR SALE signs begin to brighten the housing landscape. Along with that hope is a little uncertainty about some regions' year-over-year sales and inventory figures. Fear not, however, because rates are still lower than most years in modern memory, there's proof of an improving mix of properties for sale on the national landscape and upward price pressure continues to motivate potential home buyers. Watch listing activity closely for more hints as to what may be unearthed next.

In the Twin Cities region, for the week ending April 5:

• New Listings increased 6.1% to 1,839 • Pending Sales decreased 7.1% to 1,026 • Inventory decreased 3.6% to 13,241

For the month of March:

 • Median Sales Price increased 7.6% to $190,000 • Days on Market decreased 12.0% to 95 • Percent of Original List Price Received remained flat at 95.0 • Months Supply of Inventory decreased 6.1% to 3.1

 

Traditional Segment Blooms, Sellers More Optimistic

After being cooped up for a long, cold winter, homeowners in the 13-county Minneapolis-St. Paul metropolitan area showed renewed signs of optimism in March. Seller activity rose 5.5 percent to 6,492 newly listed homes, a crucial increase toward fueling buyer demand. Inventory levels are still hovering near a 10-year low, but consumers should have more options to choose from this year compared to recent years. Pending sales were 8.4 percent lower, resulting from a desired shift to less foreclosure and short sale activity. Most indicators continue to suggest ongoing recovery and stabilization.

It's imperative to understand market activity by segment. Buyers are now leaning toward traditional purchases first because they are making up a greater share of the marketplace. These properties also tend to be in better condition, many come with warranties and traditional sellers tend to be more cooperative than banks. New traditional listings rose 22.1 percent compared to March 2013, while foreclosure and short sale new listings fell 39.9 and 53.8 percent, respectively.

On the demand side, pending sales declined 8.4 percent to 4,141 properties overall, which still reflects less distressed market activity. Once again, traditional pending sales were up 2.6 percent while pending foreclosure and short sales fell 32.2 and 45.1 percent, respectively. Consumers shopping for homes now have 13,086 properties to choose from – or 4.1 percent fewer than last year at this time, marking the smallest year-over-year decline since November 2013.

"There's a lot of excitement and positive energy out there, especially among sellers," said Emily Green, President of the Minneapolis Area Association of REALTORS® (MAAR). "Some would-be sellers have been lifted out from underwater by rising prices and less competition from foreclosures, while other move-up buyers are also eager to buy."

The lowest price point of the market is evaporating. As a result, the median sales price for the metro rose 7.6 percent to $190,000, marking 25 straight months of year-over-year price gains. Last March, foreclosures and short sales made up 25.2 percent of all new listings. This March, they made up just 13.3 percent. For closed sales, the number fell from 37.6 to 26.6 percent.

On average, homes spent just 95 days on the market, 12.0 percent less than last March. Sellers are receiving an average of 95.0 percent of their original list price. The Twin Cities now has 3.1 months' supply of inventory, suggesting a favorable selling environment. Importantly, interest rates remain affordable and well below their long-term average.

"Traditional properties are dominating the market again," said Mike Hoffman, MAAR President-Elect. "As distressed product clears the pipeline, consumers are more likely to embark upon negotiations and transactions with people rather than banks."

Weekly Market Activity Report

As April encroaches and spring feels more official, so does the possibility of a brightened, exciting housing market. Even though some areas across the country have seen a pause in buyer activity, the fundamentals remain positive. Traditional home buyers are apt to bud like a spring mix of lavender, peonies and tulips. And home prices are rising as surely as soil is being tilled for another fruitful season, adding even more to those warm fuzzy feelings sure to come.

In the Twin Cities region, for the week ending March 29:

• New Listings increased 18.4% to 1,599 • Pending Sales decreased 5.6% to 1,101 • Inventory decreased 5.5% to 13,056

For the month of February:

• Median Sales Price increased 14.4% to $183,000 • Days on Market decreased 10.8% to 99 • Percent of Original List Price Received decreased 0.2% to 93.6% • Months Supply of Inventory decreased 9.4% to 2.9

Weekly Market Activity Report

This spring, investors are expected to play a less dominant role since there are fewer attractive bargains to be had. This allows room for younger families and individuals fed up with rent hikes. The affordability picture has come down but remains attractive, pressured by rising but not fully recovered prices and slightly higher rates. Despite some inventory shortages, several local markets are in balanced territory heading into the peak selling season. In the Twin Cities region, for the week ending March 22: • New Listings increased 2.6% to 1,490 • Pending Sales decreased 6.9% to 1,010 • Inventory decreased 6.8% to 12,791 For the month of February: • Median Sales Price increased 14.4% to $183,000 • Days on Market decreased 10.8% to 99 • Percent of Original List Price Received decreased 0.2% to 93.6% • Months Supply of Inventory decreased 12.5% to 2.8

Weekly Market Activity Report

Spring is finally beginning to show its face after a long, cold winter in many parts of the country. Generally, housing activity is waking up as well. It's been a slow start to the selling season thus far, but many believe this has more to do with the weather and lack of inventory than it does demand. Any gains may be moderate compared to a year ago, but most experts agree that market normalcy and stabilization are upon us.

In the Twin Cities region, for the week ending March 15:

• New Listings decreased 0.9% to 1,462 • Pending Sales decreased 13.1% to 912 • Inventory decreased 8.2% to 12,475

For the month of February:

• Median Sales Price increased 14.4% to $183,000 • Days on Market decreased 10.8% to 99 • Percent of Original List Price Received decreased 0.2% to 93.6% • Months Supply of Inventory decreased 12.5% to 2.8

 

March Skinny Video

Where has the Twin Cities real estate market been and where is it heading? This monthly summary provides an overview of current trends and projections for future activity. Narrated by Carson Brooks (2014 Secretary, Minneapolis Area Association of REALTORS®), video produced by Chelsie Lopez.

Weekly Market Activity Report

More daylight should help bring more hours of long-desired activity to the housing market. As the spring market dawns, sellers may see prices continue to rise and more homes should find their way to market. As long as the economy continues to gain momentum and mortgages remain low, previously underwater sellers and eager buyers should find opportunities to talk business.

In the Twin Cities region, for the week ending March 8:

• New Listings increased 6.5% to 1,454 • Pending Sales decreased 14.7% to 821 • Inventory decreased 9.4% to 12,118

For the month of February:

• Median Sales Price increased 14.4% to $183,000 • Days on Market decreased 10.8% to 99 • Percent of Original List Price Received decreased 0.2% to 93.6% • Months Supply of Inventory decreased 12.5% to 2.8

Old Man Winter, Low Inventory and Fewer Foreclosures Weigh on Sales

Minneapolis, Minnesota (March 12, 2014) – The 13-county Minneapolis-St. Paul metropolitan area housing market was negatively affected by the extreme winter. Inventory levels are also still hovering at a 10-year low, meaning consumers have far less product to purchase than in recent years. Another factor dragging down the headline numbers is the shift away from distressed homes and back toward traditional activity. Most indicators continue to suggest ongoing recovery, stabilization and normalization. Spring will offer better clues as to the health of the Twin Cities housing market.

Although new listings declined 5.0 percent to 4,616 overall, seller activity is likely to pick up during the spring and summer months. Additionally, and as has been the case for 22 consecutive months, new listings in the higher-priced traditional segment rose 9.1 percent over the same period, while foreclosure and short sale new listings fell 34.5 and 54.6 percent, respectively.

On the demand side, closed sales were down 14.0 percent to 2,465 properties overall, which speaks to the low number of weather-impeded purchase agreements entered into during January. Once again, traditional closed sales were up 6.7 percent while foreclosure sales and short sales fell 33.4 and 61.9 percent, respectively. Consumers shopping for homes now have 11,975 properties to choose from – or 9.6 percent fewer than February 2013.

“It was an interesting month,” said Emily Green, President of the Minneapolis Area Association of REALTORS® (MAAR). “While the market shifts back toward where it was before the bubble, we expect to see foreclosures and short sales become less prevalent, which can dilute overall numbers. Then you have the weather.”

As a result of this shift, the median sales price for the metro rose a strong 14.4 percent to $183,044, officially marking 24 straight month of year-over-year median price gains. Last February, foreclosures and short sales comprised 43.9 percent of all closed sales. This February, these segments made up 30.3 percent of all sales. Traditional homes are selling at a median price of $210,000; foreclosures for $131,100; short sales for $150,000.

On average, homes spent just 99 days on the market, 10.8 percent less than last year. Sellers are receiving an average of 93.5 percent of their original list price. The Twin Cities now has 2.8 months’ supply of inventory, suggesting a favorable selling environment. Importantly, interest rates remain affordable and well below their long-term average.

“The fundamentals haven’t changed.” said Mike Hoffman, MAAR President-Elect. “Our local economy is diverse and growing and so is our population. It’s important not to read too much into minor fluctuations like this.”v

Weekly Market Activity Report

Early 2014 data is telling us that the trend is still one of improvement, albeit not at the speedy pace we'd prefer. Spring hasn't arrived yet and we'll have to weather a few more months of unpredictable weather before the sing-song tempo of May markets return. Although we await warmer days ahead, there's no need to wait to gear up for a headier market. Remaining on top of weekly trends and using data to bolster marketing efforts makes for a winner dinner.

In the Twin Cities region, for the week ending February 22:

• New Listings decreased 10.5% to 1,051
• Pending Sales decreased 17.5% to 726
• Inventory decreased 8.9% to 12,089

For the month of January:

• Median Sales Price increased 11.6% to $178,500
• Days on Market decreased 12.3% to 93
• Percent of Original List Price Received remained flat at 93.5
• Months Supply of Inventory decreased 12.5% to 2.8

 

Weekly Market Activity Report

With the first days of February under our belts, it's safe to say that housing has managed to weather the heart of winter with little issue. Although 2014 activity may appear sluggish compared to gangbuster 2013, housing has stabilized and should continue to find moderate footing. Look for some signs of inventory and sales activity thawing, but keep your jacket handy as activity always varies by location and segment. In the Twin Cities region, for the week ending February 8: • New Listings decreased 3.0% to 1,193 • Pending Sales decreased 8.8% to 794 • Inventory decreased 10.2% to 11,809 For the month of January: • Median Sales Price increased 12.4% to $179,850 • Days on Market decreased 12.3% to 93 • Percent of Original List Price Received remained flat at 93.5 • Months Supply of Inventory decreased 15.6% to 2.7

Weekly Market Activity Report

Optimistic housing start stats encourage rumors that 2014 should be another year of recovering. Activity may not be volatile enough to garner bold headlines, which suits residential real estate markets just fine. The steady-as-she-goes pace and quietly consistent good news should bring out a few more previously underwater sellers to list their homes. Keep an eye out for fresh inventory and keen interest from hungry buyers.

In the Twin Cities region, for the week ending January 25:

• New Listings decreased 11.9% to 914

• Pending Sales decreased 13.0% to 663

• Inventory decreased 8.6% to 12,050

For the month of December:

• Median Sales Price increased 13.1% to $190,000 • Days on Market decreased 20.4% to 86

• Percent of Original List Price Received increased 1.0% to 94.7%

• Months Supply of Inventory decreased 15.6% to 2.7

 

January Skinny Video

Where has the Twin Cities real estate market been and where is it heading? This monthly summary provides an overview of current trends and projections for future activity. Narrated by Andy Fazendin (2013 President, Minneapolis Area Association of REALTORS) and Emily Green (2014 President, Minneapolis Area Association of REALTORS®), video produced by Chelsie Lopez.

 

 

Weekly Market Activity Report

 

 

 

Some say the big story of 2014 will be higher interest rates, some say it will be more inventory while others say it will be less foreclosure activity. The truth is likely to be an amalgamation of all of the above. The year 2013 was marked by variable but steady job growth, a good leading indicator of market activity. While consumers may be uneasy about higher rates, economic improvements can potentially offset any negative impact on affordability. The seasoned agent will recall a time when plenty of consumers were vying for properties when rates were double and triple what they are now.

 

In the Twin Cities region, for the week ending January 18:

 

• New Listings decreased 8.3% to 989

• Pending Sales decreased 24.8% to 591

• Inventory decreased 9.5% to 11,918

 

For the month of December:

 

• Median Sales Price increased 13.1% to $190,050

• Days on Market decreased 20.4% to 86

• Percent of Original List Price Received increased 1.0% to 94.7%

• Months Supply of Inventory decreased 15.6% to 2.7

 

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