The Skinny

Weekly Market Activity Report

 

It's the time of year when housing statistics take a back seat to the resolve associated with a fresh calendar year. Diligent tracking of new listings and pending sales counts tends to give way to weight loss plans and personal financial planning. And you know what? That's just great! Spending some time focusing on self just may help make 2014 a banner year to match 2013. But if you want to take a quick glance, the data is here for your perusal. Here's to another great year!

In the Twin Cities region, for the week ending January 4:

• New Listings decreased 18.7% to 678

• Pending Sales decreased 12.4% to 507 •

Inventory decreased 4.9% to 12,368For the month of December:

• Median Sales Price increased 13.7% to $191,000

• Days on Market decreased 20.4% to 86

• Percent of Original List Price Received increased 0.9% to 94.6%

• Months Supply of Inventory decreased 15.6% to 2.7

 

Click Here to View Full Weekly Activity Report

2013 Annual Wrap-Up: Widespread Market Recovery Continues

Lower supply levels, strong demand and higher prices are among the encouraging developments in 2013 that brought about ongoing market recovery. Consumer purchase demand increased notably, reaching levels not seen since 2005. As the active supply of homes for sale fell to an 11-year low, absorption rates improved to levels not seen since before 2003. Low but upwardly-mobile interest rates, affordable prices and record housing affordability resulted in an 8.8 percent increase in home sales for the 13-county metro.                                        

2013 by the Numbers

• Sellers listed 72,128 properties on the market, a 9.4 percent increase from 2012 and the first gain in seven years. • Buyers closed on 53,087 homes, up 8.8 percent from 2012 and the highest figure since 2005.
• Inventory levels dropped 10.5 percent from 2012 to 11,646 units, the lowest level in 11 years.
• Months Supply of Inventory dropped 18.8 percent to 2.6 months, also an 11-year low.
• The Median Sales Price of closed sales rose 14.4 percent to $192,000, marking a five-year high.                       o This measure of home prices is 16.5 percent below its 2006 peak and 28.0 percent above its 2011 valley
• Cumulative Days on Market was down 29.1 percent to 83 days, on average—an eight-year record pace.
• Lender-mediated properties made up a significantly smaller share of overall activity across multiple metrics                       o 21.6 percent of all New Listings were lender-mediated (either foreclosures or short sales), down from 34.7 percent in 2012 and 41.9 percent in 2011                      
o 25.6 percent of all Inventory was lender-mediated, down from 38.8 percent in 2012 and 44.4 percent in 2011                       o 26.4 percent of all Closed Sales were lender-mediated, down from 39.7 percent in 2012 and 50.0 percent in 2011                    

Potent Quotables

“We are quite pleased with the breadth and depth of this recovery. The increase in seller activity was hugely important. Motivated by still-low interest rates, rising rents and more job opportunities, buyers drove home sales to an eight-year high,” said Emily Green, President of the Minneapolis Area Association of REALTORS®.

“As always, market conditions vary from neighborhood to neighborhood, but homeowners are feeling energized by these ongoing improvements,” said Michael Hunstad, President of the Saint Paul Area Association of REALTORS®. “Though markets vary, many areas of the metro are seeing homes selling in record time and with multiple offers.”

Improvements in the local economy will boost the Twin Cities real estate market in 2014. The outlook is positive: job growth is accelerating, interest rates remain attractive and an unemployment rate well below the nation’s are all reasons our region continues to outperform.

December Monthly Skinny Video

December Monthly 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. Video produced by Chelsie Lopez. | CLICK HERE to view in a separate window or just click the embedded clip below:

 

Lighter Foreclosure and Short Sale Load Continues to Help the Market

The 13-county Minneapolis-St. Paul metropolitan area housing market continued to settle itself in November. While some measures of housing demand may suggest a slowdown, most deceleration is the result of a healing lender-mediated (foreclosures and short sales) segment, which made up a smaller share of the residential pie compared to last year.

For the first time in seven months, new listings were lower year over year, declining 5.3 percent to 3,900, but traditional new listings rose 11.1 percent over the same time comparison. Buyers closed on 3,760 homes, a 5.9 percent decrease from last November, even though traditional sales were up 13.6 percent. Twin Citizens have 14,126 properties to choose from – or 5.8 percent fewer than last November.

The market-wide median sales price held steady at $195,000 for a third straight month and up 13.4 percent compared to November 2012. Last year, foreclosures and short sales comprised 35.6 percent of all closed sales. In November 2013, these segments made up only 22.1 percent of all sales.

"We are seeing exactly what we want to be seeing," said Andy Fazendin, President of the Minneapolis Area Association of REALTORS® (MAAR). "Lender-mediated activity once commanded heavy market share, and residential real estate is going to be stronger with fewer foreclosure and short sale properties in the system."

Traditional new listings rose 11.1 percent, but foreclosure and short sale new listings fell 36.2 and 42.1 percent, respectively. Traditional closed sales rose 13.6 percent; foreclosure and short sale closings fell 34.7 and 57.6 percent. Traditional homes are selling at a median price of $217,000; foreclosures for $133,851; short sales for $150,000.

On average, homes are spending 75 days on the market – quite brisk relative to the past several years. Sellers are receiving an average of 95.4 percent of their original list price – the highest November ratio since 2005. The Twin Cities metro now has 3.2 months' supply of inventory, which suggests sellers have regained their leverage.

"Some might claim that the recovery is stalling, but the reality is that job growth is gaining momentum and there are fewer distressed properties being listed and sold than at any point in the past five years." said Emily Green, MAAR President-Elect. "We could stand to see this trend continue into 2014."

Weekly Market Activity Report

 

The calendar can sometimes have just as profound an effect on housing data as supply and demand. The 2013 Thanksgiving holiday was a week later than in 2012, causing some peculiar shifts in activity. This serves as a good reminder to watch for calendar oddities just as much as you do economic indicators. Even so, aside from family time and tryptophan, buyers and sellers had a lot to be grateful for this Thanksgiving. Buyers still live in a time of great affordability, and sellers should be thankful for shorter market times, higher prices and less competition.

In the Twin Cities region, for the week ending November 30:

• New Listings decreased 47.0% to 540 • Pending Sales decreased 38.5% to 579 • Inventory decreased 4.5% to 14,582

For the month of November:

• Median Sales Price increased 13.4% to $195,000 • Days on Market decreased 26.5% to 75 • Percent of Original List Price Received increased 1.3% to 95.4% • Months Supply of Inventory decreased 11.1% to 3.2

 

Click Here to View Full Weekly Activity Report

November Monthly Skinny Video

November Monthly 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. Video produced by Chelsie Lopez. | CLICK HERE to view in a separate window or just click the embedded clip below:

 

Weekly Market Activity Report

 

This week, and through the end of the year, you might be watching for much-needed inventory gains that will not arrive due to traditional end-of-year lulls in the marketplace related to holidays and/or colder weather. Nobody wants to sell at the bottom. In general, inventory pools are up in year-over-year comparisons in many areas, suggestive of seller confidence with recent price gains. Overall recovery is unlikely to stall. The pace of price gains and bidding wars may ease, but that's not necessarily a bad thing. Just ask any prospective home buyer.

In the Twin Cities region, for the week ending November 16:

• New Listings decreased 4.2% to 1,003 • Pending Sales decreased 7.3% to 758 • Inventory decreased 3.2% to 15,318

For the month of October:

• Median Sales Price increased 11.4% to $194,900 • Days on Market decreased 27.2% to 75 • Percent of Original List Price Received increased 1.4% to 95.8% • Months Supply of Inventory decreased 12.5% to 3.5

Click Here to View Full Weekly Activity Report

Weekly Market Activity Report

 

Fewer people are out scouting homes now that they're scouting the perfect bird for their Thanksgiving feast. Weekly and monthly seller and buyer activity may be slowing in comparison to last reporting period, but overall markets still show signs of stable recovery. By and large, expect the end of 2013 to look just as juicy and golden as your bird is soon to be.

In the Twin Cities region, for the week ending November 9:

• New Listings increased 11.4% to 1,132 • Pending Sales decreased 3.1% to 819 • Inventory decreased 3.2% to 15,517

For the month of October:

• Median Sales Price increased 11.4% to $195,000 • Days on Market decreased 27.2% to 75 • Percent of Original List Price Received increased 1.4% to 95.8% • Months Supply of Inventory decreased 12.5% to 3.5

 

Click Here to View Full Weekly Activity Report

Traditional Market Share Dominates as Sellers Re-enter the Scene

Minneapolis, Minnesota (November 12, 2013) – The Minneapolis-St. Paul metropolitan housing market continued along the path toward recovery in October. While some measures suggest a slowing in the pace of recovery, this deceleration is primarily the result of a healing distressed segment. Sellers felt more confident as new listings rose 15.1 percent to 6,102, marking the seventh consecutive year-over-year increase in monthly seller activity. Buyers closed on 4,495 homes, a modest 1.9 percent increase over last October. Consumers have 15,556 properties from which to choose – or just 3.7 percent fewer than last October, but 19.2 percent more than in January 2013. The market-wide median sales price was unchanged from September 2013 at $195,000, but was up 11.4 percent compared to October 2012. In October 2011, foreclosures and short sales together comprised 46.2 percent of all closed sales. In October 2013, these two segments made up only 21.5 percent of all sales. For new listings, the same October figure dropped from 42.4 percent in 2011 to 19.5 percent of all new listings in 2013. “The slight decrease in pending sales activity is entirely attributable to declines in the number of contracts signed on foreclosure and short sale properties,” said Andy Fazendin, President of the Minneapolis Area Association of REALTORS® (MAAR). Traditional pending sales activity was up 19.7 percent while foreclosure and short sale contracts were down about 33.7 and 50.8 percent, respectively. Closed sales increased 1.9 percent overall, but traditional closed sales rose 23.6 percent. Foreclosure sales and short sales were down 32.9 and 50.0 percent, respectively. New listings rose 15.1 percent overall, but traditional seller activity increased 39.0 percent higher as foreclosure and short sale new listings fell 24.4 and 50.1 percent, respectively. On average, homes are spending 75 days on the market – the quickest October pace in seven years. Sellers are receiving an average of 95.8 percent of their original list price – the highest October ratio since 2006. The Twin Cities metro now has 3.5 months’ supply of inventory, which suggests sellers are regaining their leverage. “We are within the final phases of market recovery,” said Emily Green, MAAR President-Elect. “Supply levels are stabilizing and regenerating, which means buyers have more choices and balance is being restored.” All information is according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from NorthstarMLS. MAAR is the leading regional advocate and provider of information services and research on the real estate industry for brokers, real estate professionals and the public. MAAR serves the Twin Cities 13-county metro area and western Wisconsin. 10K Research and Marketing, LLC is a wholly owned subsidiary of MAAR. ###

Weekly Market Activity Report

 

Nationally, we are starting to see some of the impact of the government shutdown on the housing market. Applications for government mortgage products dropped to the lowest level since 2007, according to a release from the Mortgage Banker's Association. This was while overall applications were up marginally. Most FHA lenders  were able to process loans while Veterans Administration loans were slowed considerably and USDA Rural Development financing was cut off entirely. That said, there was still plenty of activity locally, much of it positive.

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

• New Listings increased 16.3% to 1,291
• Pending Sales decreased 11.4% to 867
• Inventory decreased 3.9% to 16,275

For the month of September:

• Median Sales Price increased 11.7% to $195,000
• Days on Market decreased 29.7% to 71
• Percent of Original List Price Received increased 1.8% to 96.5%
• Months Supply of Inventory decreased 14.0% to 3.7

Click Here to View Full Weekly Activity Report

Weekly Market Activity Report

 

Home price gains and housing demand are still a year-over-year improvement, but activity is beginning to moderate as the seasons change. With the possibility of

further rate and price increases, some buyers are still motivated, but urgency tends to wane when holiday decorations start going up. Recovery continues, but the

pace is stabilizing. Yet that's a good thing, since harmful corrections usually follow when the market moves too far too fast.

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

• New Listings increased 17.9% to 1,536
• Pending Sales increased 2.4% to 1,037
• Inventory decreased 6.2% to 16,074

For the month of September:

• Median Sales Price increased 11.7% to $195,000
• Days on Market decreased 29.7% to 71
• Percent of Original List Price Received increased 1.8% to 96.5%
• Months Supply of Inventory decreased 16.3% to 3.6

 

Click Here to View Full Weekly Activity Report

Home Prices Continue Their Ascent as Inventory Searches for Bottom

Recovery continued across the Minneapolis-St. Paul metropolitan housing market even with our first taste of fall weather. Sellers regained some enthusiasm as new listings rose 19.3 percent to 6,372, marking the sixth consecutive year-over-year increase in monthly seller activity.

Buyers closed on 4,667 homes, a 14.5 percent increase over last September. Consumers have 15,968 properties from which to choose – 7.1 percent fewer than September 2012 but 22.5 percent more than in January 2013.

The overall median sales price stood at $195,000, up 11.7 percent compared to September 2012. Three factors have coalesced to attain higher sales prices: less supply, more demand and a sales mix that’s returning to traditional sales and away from foreclosures.

In September 2011, foreclosures and short sales together comprised 46.1 percent of all closed sales. In September 2013, these two segments made up only 21.9 percent of sales.

“Median sales prices have increased for 19 consecutive months in year-over-year comparisons,” said Andy Fazendin, President of the Minneapolis Area Association of REALTORS® (MAAR). “Rising rents, affordable prices and low interest rates continue to drive sales increases.”

While closed sales were up 14.5 percent overall, traditional buyer activity was up 37.3 percent. Foreclosure sales and short sales were down 27.3 and 30.0 percent, respectively.

Similarly, new listings were up 19.3 percent overall, but traditional seller activity rallied 42.6 percent higher as foreclosure and short sale new listings fell 29.6 and 42.6 percent, respectively.

Homes are selling in an average of 71 days, continuing a low-number trend from last month that we haven’t seen around here for more than six years. Sellers are receiving an average of 96.5 percent of their original list price – the highest September ratio since 2005. The Twin Cities is at 3.6 months’ supply of inventory for September 2013.

The traditional median sales price rose 4.4 percent to $217,000; the foreclosure median sales price was up 8.0 percent to $134,900; the short sale median sales price increased 10.9 percent to $145,250.

“With price gains continuing and multiple-offer situations still common, market recovery and stability has been the order of the day,” said Emily Green, MAAR President-Elect. “Activity should begin its season slowdown, but we expect year-over-year activity to remain positive.”

Weekly Market Activity Report

 

Higher interest rates, rising prices and a budget standoff in Washington haven’t shaken consumer sentiment regarding housing. Buyers continue to riffle through existing inventory for options, keeping an eye out for new listings. A sense of normalcy is returning to the real estate ethos after more than a decade of extreme ups and downs. It’s a big week for economic and housing news, so keep your eyes and ears tuned for any changing headlines.

In the Twin Cities region, for the week ending September 21:

• New Listings increased 13.3% to 1,469
• Pending Sales decreased 5.5% to 970
• Inventory decreased 6.8% to 16,249

For the month of August:

• Median Sales Price increased 16.9% to $207,900
• Days on Market decreased 34.0% to 70
• Percent of Original List Price Received increased 2.0% to 97.0%
• Months Supply of Inventory decreased 18.2% to 3.6

Click Here to View Full Weekly Activity Report

September Monthly 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. Video produced by Chelsie Lopez. | CLICK HERE to view in a separate window or just click the embedded clip below:

Weekly Market Activity Report

 

A pendulum spends little time in the middle. It tends to overswing center and hang out at the extreme before changing directions. Apply that to housing. Two or three years ago, almost no one would have foreshadowed concern over affordability, yet that's what some are cautioning against in an environment of rising prices and interest rates. It would take further increases to truly rattle confidence and sentiment, but it's wise to monitor the market recovery's dual-edged saber.

In the Twin Cities region, for the week ending September 7:

• New Listings increased 18.6% to 1,511
• Pending Sales decreased 4.5% to 857
• Inventory decreased 8.9% to 15,891

For the month of August:

• Median Sales Price increased 16.9% to $207,900
• Days on Market decreased 34.0% to 70
• Percent of Original List Price Received increased 2.0% to 97.0%
• Months Supply of Inventory decreased 18.2% to 3.6

 

Click Here to View Full Weekly Activity Report