Weekly Market Report

For Week Ending September 2, 2017

Market trends have remained steady for the last couple of years, which has allowed residential real estate to flourish in terms of sales activity and buyer demand. Even when total sales are not measuring forward in year-over-year comparisons, it is evident that the market is responding positively to wider economic indicators. Higher prices, fewer days on market and lower months of supply are all usual indicators of healthy activity.

In the Twin Cities region, for the week ending September 2:

  • New Listings decreased 2.3% to 1,306
  • Pending Sales decreased 4.3% to 1,145
  • Inventory decreased 16.5% to 12,852

For the month of July:

  • Median Sales Price increased 5.6% to $251,650
  • Days on Market decreased 16.4% to 46
  • Percent of Original List Price Received increased 0.8% to 99.1%
  • Months Supply of Inventory decreased 16.1% to 2.6

All comparisons are to 2016

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

Weekly Market Report

For Week Ending August 26, 2017

Conversationally speaking, it has been a busy and exciting summer for residential real estate. Much has been said about low supply, higher prices and speedy sales, but the truth of the matter is that buyers are snatching up desirable homes no matter the trends. Good transactions are occurring with smart lending practices. Although more inventory would be useful, the market is finding a way to succeed.

In the Twin Cities region, for the week ending August 26:

  • New Listings increased 3.7% to 1,499
  • Pending Sales decreased 1.3% to 1,227
  • Inventory decreased 16.4% to 13,010

For the month of July:

  • Median Sales Price increased 5.6% to $251,650
  • Days on Market decreased 16.4% to 46
  • Percent of Original List Price Received increased 0.8% to 99.1%
  • Months Supply of Inventory decreased 16.1% to 2.6

All comparisons are to 2016

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

Weekly Market Report

For Week Ending August 19, 2017

With each passing August day, fewer households with school-aged children are willing to embark upon a big move for fear of unsettling kids from the important routines that lay the groundwork for a good education. But savvy sellers and buyers know that there are good deals to be made in August and well into the school months, as household formations take on many shapes and sizes.

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

  • New Listings increased 3.0% to 1,618
  • Pending Sales decreased 3.8% to 1,244
  • Inventory decreased 16.2% to 12,733

For the month of July:

  • Median Sales Price increased 5.9% to $254,000
  • Days on Market decreased 16.7% to 45
  • Percent of Original List Price Received increased 0.8% to 99.2%
  • Months Supply of Inventory decreased 19.4% to 2.5

All comparisons are to 2016

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

Weekly Market Report

For Week Ending August 12, 2017

The prevailing trends have continued to prevail through the summer, which has not really been a surprise. There have not been any jolting changes in the economy that would affect residential real estate. This includes steady news for factors such as wage growth, unemployment, new construction and mortgage rates. Every locality has its unique challenges, but housing as a whole is performing as expected.

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

  • New Listings increased 1.2% to 1,668
  • Pending Sales decreased 8.0% to 1,195
  • Inventory decreased 17.1% to 12,576

For the month of July:

  • Median Sales Price increased 5.9% to $254,000
  • Days on Market decreased 16.7% to 45
  • Percent of Original List Price Received increased 0.8% to 99.2%
  • Months Supply of Inventory decreased 19.4% to 2.5

All comparisons are to 2016

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

Pricing strong, but shortage continues to hold back market activity

By Erin Milburn on Tuesday, August 15th, 2017

While June 2017 marked an all-time home sales record for the Twin Cities, closed sales retreated slightly in July compared to 2016. A slow-down in sellers listing their homes was a contributing factor, as was low inventory. New listings decreased 3.9 percent from last year to 7,227, and the number of homes for sale decreased 18.3 percent to 12,407. That was the largest inventory decline in five months. Pending sales declined 1.2 percent to 5,661, and closed sales were down 2.6 percent to 6,020. Factoring out foreclosures and short sales, traditional pending sales increased 0.7 percent to 5,484.

Weak supply and robust demand tend to encourage rising prices. The median sales price rose 5.9 percent from last year to $254,000—a new monthly record for July. Home prices have now risen for the last 65 consecutive months. At 44 days on average, homes went under contract 18.5 percent faster than last July. Despite there being fewer of them, sellers who have listed their homes recently are receiving strong offers in less time. The average percent of original list price received at sale was 99.2 percent, 0.8 percent higher than July 2016. The metro area has just 2.5 months of housing supply. Generally, five to six months of supply is considered a balanced market where neither buyers nor sellers have a clear advantage.

“The market is always adjusting to changing conditions,” said Cotty Lowry, Minneapolis Area Association of REALTORS® (MAAR) President, “Although we saw a nice gain in new construction listings in July, that segment is typically a few years behind and is a drop in the bucket compared to the existing resale market where sellers have felt stuck with nowhere to go.”
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Not only is the move-up market less competitive than the entry-level price points, but move-up sellers are getting strong offers on their homes in record time. Because of the fast pace of the market and lack of inventory, it’s extremely rare for sellers to carry two mortgages for more than a month.

A thriving and diverse local economy has been conducive to housing recovery, as job growth is key to new household formations. The most recent national unemployment rate is 4.3 percent, though it’s 3.5 percent locally. The Minneapolis–St. Paul region has a resilient economy with a global reach, a talented workforce, top notch schools, exposure to the growing technology and healthcare fields, 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 3.9 percent recently, still well below its long-term average of around 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. Additional inventory is needed in order to offset declining affordability brought on by higher prices and interest rates.

“The fact that buyers are hardly phased by the lack of inventory speaks to the appeal of homeownership and of our region,” said Kath Hammerseng, MAAR President-Elect. “The current environment calls for additional patience, persistence and compromise, but Minnesotans are known for those traits.”

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 August 5, 2017

As we reach into August, we’ll begin to see the volume of activity wane in anticipation of the school year. Although not every buyer or seller has children, it’s no secret that homeownership is a popular housing option for those with kids. In bulk, this has historically been enough of a factor for turning down the summer’s market heat before lower temperatures take hold.

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

  • New Listings decreased 0.5% to 1,787
  • Pending Sales decreased 3.6% to 1,285
  • Inventory decreased 16.9% to 12,541

For the month of June:

  • Median Sales Price increased 7.0% to $259,000
  • Days on Market decreased 16.1% to 47
  • Percent of Original List Price Received increased 0.8% to 99.5%
  • Months Supply of Inventory decreased 13.3% to 2.6

All comparisons are to 2016

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

Weekly Market Report

For Week Ending July 29, 2017

A favorable economy has kept buyers active amidst a summer of stiff competition that has led prices upward and often over the asking price. The latest recorded national unemployment rate of 4.3 is historically low and has served as a general indicator of a strong economy. If wage growth shifts into overdrive from its current state of patient increases, we may see even higher prices or, conversely, more willingness by sellers to increase the inventory pool.

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

  • New Listings decreased 2.3% to 1,686
  • Pending Sales decreased 4.7% to 1,300
  • Inventory decreased 16.9% to 12,645

For the month of June:

  • Median Sales Price increased 7.0% to $259,000
  • Days on Market decreased 16.1% to 47
  • Percent of Original List Price Received increased 0.8% to 99.5%
  • Months Supply of Inventory decreased 13.3% to 2.6

All comparisons are to 2016

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

Seasonal Adjustments

By David Arbit on Friday, August 4th, 2017

Given the fact that the school year is about a month away (yikes) and we’ve already had our first preview of fall weather, it feels like a good time to talk about seasonality. First of all, whatever you do, don’t use the term “seasonably adjusted.” Second of all, don’t make matters worse by talking about the “seasonably adjusted medium sales price.” That’s not a thing.

All kidding aside, both agents and the public have a vested interested in knowing how and when listings, inventory levels, purchase agreements and closed sales ebb and flow throughout the year. Ever been asked the question or wondered “when do the most new listings come on the market?” Or “when do buyers write the most offers?” Or how about “what month tends to have the greatest number of homes for sale?”

These are legitimate and important questions that can inform a variety of market-related strategies. Technically, April sees the highest volume of new listings, but buyers have the greatest number of choices in July. Signed purchase agreements peak in June along with closed sales. The shape of the seasonal curves can also be revealing. Seller activity tends to ramp up quickly in March and April and then quiet down rapidly starting in October. New listings are front-loaded in the first half of the year. Buyer activity, particularly pending sales, tends to follow more of a “normal” or even distribution throughout the year.
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From The Skinny Blog.

Weekly Market Report

For Week Ending July 22, 2017

Residential real estate activity has remained robust through the summer months so far. New listing and sales activity may not always land exactly where desired or expected from week to week, but it is clear by gradually increasing prices and ongoing low inventory that buyer demand has not weakened.

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

  • New Listings increased 0.9% to 1,842
  • Pending Sales decreased 6.3% to 1,297
  • Inventory decreased 17.2% to 12,555

For the month of June:

  • Median Sales Price increased 7.0% to $259,000
  • Days on Market decreased 16.1% to 47
  • Percent of Original List Price Received increased 0.8% to 99.5%
  • Months Supply of Inventory decreased 13.3% to 2.6

All comparisons are to 2016

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