Weekly Market Report

For Week Ending May 6, 2017

As we get closer to summer, more houses are put up for sale, as tends to happen around this time each year. Yet it’s not as many homes for sale as 2016, and last year did not have as much available to buy as in 2015. The downward trend continues, which can have an affect on total sales. Homes listed when move-in ready and priced well are being snapped up quickly. In fact, despite lower inventory, many REALTORS® report that they are busier than last year and closing plenty of sales.

In the Twin Cities region, for the week ending May 6:

  • New Listings increased 5.7% to 2,341
  • Pending Sales decreased 4.4% to 1,507
  • Inventory decreased 18.9% to 11,012

For the month of April:

  • Median Sales Price increased 6.5% to $246,000
  • Days on Market decreased 20.5% to 58
  • Percent of Original List Price Received increased 1.2% to 99.2%
  • Months Supply of Inventory decreased 21.4% to 2.2

All comparisons are to 2016

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

IMPRESSIVE BUYER ACTIVITY, CONSIDERING THE DRAMATIC LISTING SHORTAGE

By Erin Milburn on Friday, May 12th, 2017

Compared to April 2016, new listings in the Twin Cities declined 8.3 percent while pending sales decreased 8.5 percent. Given that there were about 20.0 percent fewer homes for sale, a modest decrease in signed purchase agreements compared to last year reflects a shortage of listings and not necessarily declining demand. Days on market is still down and the number of showings per listing rose compared to last April. Buyers are still eager to purchase a home, but supply side constraints are weighing on sales activity. Those shopping for homes have 10,916 properties from which to choose in the metro area, the lowest April reading since 2003.

Low supply and high demand environments tend to drive prices higher. The median sales price rose 6.3 percent from last April to $245,500. Multiple offers on updated, turn-key properties are common in low inventory environments. Properties also tend to sell quickly and for close to or above list price. Average days on market until sale fell 20.5 percent to 58 days compared to 73 in April 2016. It’s worth noting that the median days on market for April was a brisk 21 days—a 10-year record pace. The average percent of original list price received at sale was 99.2 percent, 1.2 percent higher than last year. Similarly, the median percent of original list price received at sale was 100.0 percent, meaning half the sales closed for less than full list price while the other half closed for over list price. The Twin Cities has only 2.2 months of housing supply—the lowest April reading since 2003. Generally, five to six months of supply is considered a balanced market where neither buyers nor sellers have a clear advantage.

“Any agent or house hunter can confirm that buyers are in no way disappearing,” said Cotty Lowry, Minneapolis Area Association of REALTORS® (MAAR) President. “But we are seeing signs that the shortage of listings is starting to hold back our demand indicators such as pending [sales] and closed sales. Despite fewer listings, we still saw more showings per listing.”

A healthy and diverse local economy has been conducive to housing recovery. The most recent national unemployment rate is 4.4 percent, though it’s 3.8 percent locally. The Minneapolis–St. Paul region has a resilient economy with a global reach, a talented workforce, top notch schools and a quality of life that’s enabled one of the highest homeownership rates in the country.

The average 30-year fixed mortgage rate has declined from 4.3 percent to 4.0 percent lately, still well below a long-term average of about 8.0 percent. Excluding any surprising data or events, the Federal Reserve is likely to increase their target federal funds rate at least once more this year. Wage and inventory growth are key to offsetting affordability declines brought on by higher rates.

“The shortage of supply in our market is showing up in several ways beyond price gains, quick markets times and multiple offers,” said Kath Hammerseng, MAAR President-Elect. “Additional inventory is key to sustaining our housing recovery and is critical to maintaining a healthy and accessible marketplace.”

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.

From The Skinny Blog.

Weekly Market Report

For Week Ending April 29, 2017

Much of the news surrounding the housing market is about climbing prices and continued decreases in inventory on a year-over-year basis. Although prices have been rising steadily, we are only now beginning to reach pre-recession price levels on a national basis, and that’s not the rule for all homes and communities. If demand stays strong, unemployment rates continue to dwindle and wages keep consumer confidence high, the market should remain active and interesting.

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

  • New Listings increased 0.1% to 1,873
  • Pending Sales decreased 9.6% to 1,443
  • Inventory decreased 19.8% to 10,901

For the month of March:

  • Median Sales Price increased 6.9% to $237,400
  • Days on Market decreased 15.3% to 72
  • Percent of Original List Price Received increased 1.3% to 98.1%
  • Months Supply of Inventory decreased 19.2% to 2.1

All comparisons are to 2016

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

Weekly Market Report

For Week Ending April 22, 2017

It is a lucrative time to sell a home, and it would appear that it will remain that way for the time being. Houses that show well and are priced correctly have been selling quickly, often at higher prices than asking. Thus far, buyers are proving to be resilient in 2017, keeping the home-purchasing momentum up even amidst the mounting competition that comes with the annual spring market.

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

  • New Listings increased 4.7% to 2,037
  • Pending Sales decreased 9.8% to 1,409
  • Inventory decreased 21.5% to 10,625

For the month of March:

  • Median Sales Price increased 6.9% to $237,400
  • Days on Market decreased 15.3% to 72
  • Percent of Original List Price Received increased 1.3% to 98.1%
  • Months Supply of Inventory decreased 19.2% to 2.1

All comparisons are to 2016

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

Weekly Market Report

For Week Ending April 15, 2017

In light of the low inventory and affordability situation this year, it was a good surprise to see existing home sales hit a national 10-year high. It isn’t a surprise, however, to see multiple offers on a home within a few days of being on the market. Buyer demand is high and will continue to be for the foreseeable future, so it was also welcome news that builder confidence and housing starts were up as well.

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

  • New Listings decreased 17.8% to 1,612
  • Pending Sales decreased 6.7% to 1,374
  • Inventory decreased 20.1% to 10,574

For the month of March:

  • Median Sales Price increased 7.0% to $237,500
  • Days on Market decreased 14.1% to 73
  • Percent of Original List Price Received increased 1.3% to 98.1%
  • Months Supply of Inventory decreased 19.2% to 2.1

All comparisons are to 2016

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

Trading places? Seller activity up; signed purchase agreements down

By David Arbit on Monday, April 17th, 2017

Seller activity rose 1.3 percent compared to March 2016. The number of signed purchase agreements declined 3.0 percent, though the number of closed sales rose 8.3 percent. Housing demand has outpaced supply, thus continuing the trend of falling active listings. In March, inventory levels fell about 20.0 percent compared to 2016 levels. Those shopping for homes have 10,213 properties from which to choose in the metro area. Given that figure stands near a 15-year low and demand has reached an 11-year high, affordably-priced homes that are listed often fetch full-price offers or better in record time.

These market conditions tend to drive prices higher. The median sales price increased 7.0 percent from last March to $237,500. Multiple offers on attractive, turn-key properties in the most desirable neighborhoods and school districts are common in low inventory environments. Properties also tend to sell quickly and for close to or above list price. Average days on market until sale fell 14.1 percent to 73 days compared to 85 in March 2016. It’s worth noting that the median days on market for March was a brisk 34 days. The average percent of original list price received at sale was 98.1 percent, 1.3 percent higher than last March. Similarly, the median percent of last list price received at sale was 100.0 percent. The Twin Cities has only 2.0 months of housing supply—the lowest March reading since 2003. Generally, five to six months of supply is considered a balanced market where neither buyers nor sellers have a clear advantage.MAAR-March-2017-Stats-News-Release-702x489

“Buyers were still very active during the first quarter,” said Cotty Lowry, Minneapolis Area Association of REALTORS® (MAAR) President. “This is encouraging as households adjust to marginally higher borrowing costs, though it’s likely a lack of listings that’s suppressing even stronger gains.”

A thriving local economy has been conducive to housing recovery. The most recent national unemployment rate is 4.5 percent, though it’s 4.2 percent locally. The Minneapolis–St. Paul region has a diversified and resilient economy with a talented workforce that’s enabled one of the highest homeownership rates in the country.

The average 30-year fixed mortgage rate has declined from 4.3 percent to 4.1 percent lately, still well below a long-term average of about 8.0 percent. Barring any unforeseen events, the Federal Reserve is likely to increase their target federal funds rate at least once more this year. Wage and inventory growth are key to offsetting affordability declines brought on by higher rates.

“We’re still seeking a healthier balance in the marketplace that enables all participants to achieve their goals,” said Kath Hammerseng, MAAR President-Elect. “It’s essential to bring additional options to buyers, particularly in the more affordable price brackets.”

From The Skinny Blog.

Weekly Market Report

For Week Ending April 8, 2017

With both inventory and months of supply struggling to keep up with demand, it will not be unusual to see some weeks where pending sales post a year-over-year decline, especially if new listings droop below the standards set during the prior year. Meanwhile, we can continue to expect to see sales prices forge their way upward and affordability shrink downward in what is expected to be a pleasant spring and summer for sellers.

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

  • New Listings increased 1.4% to 2,013
  • Pending Sales decreased 9.1% to 1,337
  • Inventory decreased 21.7% to 10,188

For the month of March:

  • Median Sales Price increased 7.0% to $237,500
  • Days on Market decreased 14.1% to 73
  • Percent of Original List Price Received increased 1.3% to 98.1%
  • Months Supply of Inventory decreased 19.2% to 2.1

All comparisons are to 2016

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

Weekly Market Report

For Week Ending April 1, 2017

Confidence in buying a home has fallen according to the Fannie Mae Home Purchase Sentiment Index after hitting an all-time index high in February. Continuing price increases and low inventory are easy answers for why the index fell. The good news is that an improved employment outlook and higher wages are major factors toward purchasing a home, and demand is not expected to abate.

In the Twin Cities region, for the week ending April 1:

  • New Listings decreased 3.9% to 1,874
  • Pending Sales decreased 5.2% to 1,303
  • Inventory decreased 21.7% to 10,003

For the month of February:

  • Median Sales Price increased 7.7% to $223,250
  • Days on Market decreased 14.6% to 82
  • Percent of Original List Price Received increased 1.4% to 96.5%
  • Months Supply of Inventory decreased 28.0% to 1.8

All comparisons are to 2016

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

Weekly Market Report

For Week Ending March 25, 2017

During the first quarter of 2017, housing affordability has clearly become an issue for some buyers, as prices continue to rise amidst strong demand. Even so, pending sales figures have generally remained positive across the nation. A better balance between high-price inventory and starter homes being sold would be the most beneficial situation for the marketplace.

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

  • New Listings increased 6.3% to 1,584
  • Pending Sales decreased 4.9% to 1,292
  • Inventory decreased 23.0% to 9,874

For the month of February:

  • Median Sales Price increased 7.6% to $223,000
  • Days on Market decreased 14.6% to 82
  • Percent of Original List Price Received increased 1.4% to 96.5%
  • Months Supply of Inventory decreased 28.0% to 1.8

All comparisons are to 2016

Click here for the full Weekly Market Activity Report. From The Skinny Blog.