Monday, December 5th, 2016

For Week Ending November 26, 2016

National home prices reached a record high, increasing 0.1 percent from the pre-recession peak in 2006. This height – driven by low inventory, solid demand and responsible lending practices – is much different from the previous high mark. Inflation is also a factor. Interest rates, unemployment, prices and wage trends will continue to be factors to monitor for trend analysis as we reach toward 2017.

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

  • New Listings decreased 6.7% to 502
  • Pending Sales decreased 5.7% to 595
  • Inventory decreased 19.9% to 11,571

For the month of October:

  • Median Sales Price increased 6.5% to $230,000
  • Days on Market decreased 14.3% to 60
  • Percent of Original List Price Received increased 0.8% to 96.9%
  • Months Supply of Inventory decreased 21.2% to 2.6

All comparisons are to 2015

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

Posted in Weekly Report |
Monday, November 28th, 2016

For Week Ending November 19, 2016

With the holiday season in full swing, existing home sales rose for the second straight month to the highest they have been since 2007. This was unexpected, since prices are also at record highs and inventory is still consistently declining. As both incomes and employment figures continue to improve, it would be a welcome surprise to see sales trend higher through to the end of the year.

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

  • New Listings increased 10.9% to 950
  • Pending Sales increased 8.0% to 902
  • Inventory decreased 19.7% to 11,975

For the month of October:

  • Median Sales Price increased 6.5% to $230,000
  • Days on Market decreased 14.3% to 60
  • Percent of Original List Price Received increased 0.8% to 96.9%
  • Months Supply of Inventory decreased 21.2% to 2.6

All comparisons are to 2015

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

Posted in Weekly Report |
Friday, November 25th, 2016

Posted in Monthly Skinny Video |
Monday, November 21st, 2016

For Week Ending November 12, 2016

The sudden elevation in mortgage rates after the election may throw a wrench into the market for both buyers and sellers. Affordability and inventory are already low, and rate spikes coupled with rising prices may keep buyers at bay. In return, potential sellers may forgo selling if they have to lower their asking prices. These are hypothetical situations, of course, and residential real estate is presently performing well.

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

  • New Listings decreased 3.8% to 986
  • Pending Sales decreased 2.7% to 857
  • Inventory decreased 19.0% to 12,334

For the month of October:

  • Median Sales Price increased 6.5% to $230,000
  • Days on Market decreased 14.3% to 60
  • Percent of Original List Price Received increased 0.8% to 96.9%
  • Months Supply of Inventory decreased 21.2% to 2.6

All comparisons are to 2015

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

Posted in Weekly Report |
Monday, November 14th, 2016
By Erin Milburn on Monday, November 14th, 2016

Pending home sales rose 1.6 percent compared to last year and reached their highest level for any October since 2004. Sellers listed 5,249 for-sale properties on the market, 9.5 percent fewer than last October. Closed sales increased 0.8 percent to 4,791. That closed sales figure is between 2004 and 2005 levels. Although home prices have reached their seasonal peak for 2016, the median sales price increased 6.5 percent from last year to $230,000. Buyers are still frustrated by a lack of options. Inventory levels fell 19.0 percent to 12,625 active properties. Additional listings are needed to ease the current supply shortage—especially at the entry-level and first-time buyer price points.

Multiple bids on attractive listings are common in low inventory environments, and homes tend to sell quickly. Days on market until sale fell 14.3 percent to 60 days. The average percent of original list price received at sale was 96.9 percent, 0.8 percent higher than last year. But the median percent of current list price received is 99.6 percent, the highest level since 2005. Months supply of inventory fell 24.2 percent to 2.5 months—the lowest October figure on record since the beginning of 2003. This indicator measures the balance between supply and demand in the marketplace. Generally, five to six months of supply is considered a balanced market. Less than that indicates a seller’s market.

NewListings-PR_2016-10

“Demand is still soaring while listing activity has weakened,” said Judy Shields, Minneapolis Area Association of REALTORS® (MAAR) President. “Partly because of that, we expect prices to remain firm through the winter months barring any unforeseen events.”

The strongest sales activity over the last 12 months is in the $190,000 to $250,000 range, followed by the $250,000 to $350,000 range. Although single family sales dominate the Twin Cities market by number, condo and townhome sales witnessed the largest year-over-year sales increase. Similarly, while previously-owned properties make up the largest share of sales, newly constructed properties had a stronger year-over-year gain.

A healthy Twin Cities labor market has been conducive to housing recovery. The most recent national unemployment rate is 4.9 percent, though it’s a healthier 3.3 percent locally. The Minneapolis-St. Paul-Bloomington metropolitan area has the fourth lowest unemployment rate of any major metro area.

Locally, the 30-year fixed mortgage rate stands at 3.55 percent compared to a long-term average of about 8.0 percent. Rates are still near their lowest levels in three years. Marginally higher rates were widely expected in 2016, but the Federal Reserve hasn’t moved rates since last December. Even though the Fed was widely expected to raise rates this December, market volatility could change that.

“Buyers are still very much motivated by the current environment, it’s weak seller activity that is holding this market back,” said Cotty Lowry, MAAR President-Elect. “As this recovery moves into its sixth year, it’s critical to remember that markets and economies are never ‘due’ for a decline the way the Cubs were ‘due’ for a World Series win. There is usually a reason.”
From The Skinny Blog.

Posted in The Skinny |

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