Ted Bergstrom

For Week Ending March 28, 2020

This week was heavily influenced by the ongoing impacts from the spread of COVID-19. Washington passed a $2.2 trillion stimulus package and news broke that 3.28 million people filed for unemployment benefits last week—nearly five times the previous weekly record. As more businesses temporarily close due to the growing outbreak, even higher unemployment filings are expected in coming weeks. As many begin or continue to shelter at home, real estate activity is slowing down right along with the rest of the economy.

In the Twin Cities region, for the week ending March 28:

• New Listings decreased 5.8% to 1,422
• Pending Sales decreased 5.4% to 1,131
• Inventory decreased 7.0% to 8,843

For the month of February:

• Median Sales Price increased 6.2% to $281,570
• Days on Market decreased 2.9% to 67
• Percent of Original List Price Received increased 0.3% to 98.0%
• Months Supply of Homes For Sale decreased 11.1% to 1.6

All comparisons are to 2019

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

For Week Ending March 21, 2020

This week Fannie Mae, Freddie Mac, and the FHA suspended all foreclosures and evictions for 60 days in response to the continued COVID-19 outbreak. Further, the Federal Housing Finance Agency (FHFA) annouced that borrowers with loans backed by Fannie Mae and Freddie Mac who face financial difficulties due to COVID-19 may be able to suspend their mortage payments for up to 12 months. Impacted borrowers are urged to reach out to their mortgage companies to discuss their situation.

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

• New Listings increased 16.0% to 1,688
• Pending Sales increased 11.0% to 1,183
• Inventory decreased 7.1% to 8,653

For the month of February:

• Median Sales Price increased 6.2% to $281,500
• Days on Market decreased 2.9% to 67
• Percent of Original List Price Received increased 0.3% to 98.0%
• Months Supply of Homes For Sale decreased 11.1% to 1.6

All comparisons are to 2019

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

For Week Ending March 14, 2020

After hitting a record low last week, rates on 30-year fixed-rate mortgages rose slightly this week according to Freddie Mac. A combination of an increase in rates in the bond market and high demand for refinancing and purchase mortgages contributed to the uptick. Meanwhile, the continued spread of COVID-19 is leading many companies and consumers to change their daily activities. ShowingTime is closely monitoring the situation and releasing daily updates on changes in showing activity: https://www.showingtime.com/impact-of-coronavirus/

In the Twin Cities region, for the week ending March 14:

• New Listings increased 21.7% to 1,713
• Pending Sales increased 16.0% to 1,205
• Inventory decreased 8.7% to 8,364

For the month of February:

• Median Sales Price increased 6.2% to $281,570
• Days on Market decreased 2.9% to 67
• Percent of Original List Price Received increased 0.3% to 98.0%
• Months Supply of Homes For Sale decreased 11.1% to 1.6

All comparisons are to 2019

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

For Week Ending March 7, 2020

A report released this week from property management software firm RealPage predicts a total of 371,000 new apartments to enter the market in 2020, which would be the highest level across the country’s 150 largest apartment markets in three decades. Nationwide there is still a significant housing shortage and so increases in any housing type can help reduce pressure throughout the market.

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

• New Listings increased 31.1% to 1,755
• Pending Sales increased 23.2% to 1,162
• Inventory decreased 11.0% to 8,001

For the month of February:

• Median Sales Price increased 6.2% to $281,500
• Days on Market decreased 2.9% to 67
• Percent of Original List Price Received increased 0.3% to 98.0%
• Months Supply of Homes For Sale decreased 11.1% to 1.6

All comparisons are to 2019

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

For Week Ending February 29, 2020

The U.S. Commerce Department reported this week that new-home sales rose 7.9% in January to a seasonally adjusted annual rate of 764,000 units, which is 18.6% higher than a year ago and the highest monthly sales pace since July 2007. While new-home sales are increasing, new-home inventories fell 6.6% from a year ago and are now the lowest since 2017. The National Association of REALTORS® and others are calling on home builders to increase residential home construction to meet increased demand, but a labor shortage, higher costs of construction and possible supply-chain disruption due to COVID-19 may limit homebuiders’ ability to respond to the increased demand.

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

• New Listings increased 8.0% to 1,395
• Pending Sales increased 12.2% to 1,083
• Inventory decreased 13.1% to 7,785

For the month of January:

• Median Sales Price increased 4.2% to $270,000
• Days on Market increased 3.1% to 67
• Percent of Original List Price Received decreased 0.1% to 97.0%
• Months Supply of Homes For Sale decreased 11.1% to 1.6

All comparisons are to 2019

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

For Week Ending February 22, 2020

The ShowingTime Showing Index® for January saw a 20.2 percent year-over-year increase in showing traffic nationwide. All regions of the country were up double-digits from the year before, with the Midwest Region up 15.7 percent and the West Region, up 34.1 percent. As showing activty is a leading indicator for future home sales, the 2020 housing market is off to a strong start.

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

• New Listings increased 31.4% to 1,269
• Pending Sales increased 20.8% to 1,073
• Inventory decreased 14.4% to 7,734

For the month of January:

• Median Sales Price increased 4.2% to $270,000
• Days on Market increased 3.1% to 67
• Percent of Original List Price Received decreased 0.1% to 97.0%
• Months Supply of Homes For Sale decreased 11.1% to 1.6

All comparisons are to 2019

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

For Week Ending February 15, 2020

According to the latest REALTORS® Confidence Index Survey of more than 8,000 real estate respondents, one in four home sales faced a settlement delay in December 2019. Seventy-one percent closed on time and four percent were canceled altogether. The biggest reasons cited for a delayed closing were issues related to financing (37%), appraisal issues (19%), and home inspection/environmental issues (17%).

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

• New Listings increased 9.6% to 1,156
• Pending Sales increased 13.9% to 967
• Inventory decreased 14.8% to 7,692

For the month of January:

• Median Sales Price increased 4.2% to $270,000
• Days on Market increased 3.1% to 67
• Percent of Original List Price Received decreased 0.1% to 97.0%
• Months Supply of Homes For Sale decreased 11.1% to 1.6

All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

For Week Ending February 8, 2020

The impact of the spread of Coronavirus continues to grow as the 30-year fixed-rate mortgage fell to 3.51% last week. Lawrence Yun, chief economist at the National Association of REALTORS®, explained that the upper-end of the housing market may soften with the temporary loss of Chinese buyers. “China has been the most important source of foreign demand for real estate,” he explained. Until temporary travel bans are lifted, many potential Chinese buyers will be restricted from visiting the U.S., which will in turn reduce the number of active home buyers, particularly at the high end of the market.

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

• New Listings increased 14.1% to 1,315
• Pending Sales increased 18.4% to 960
• Inventory decreased 15.6% to 7,556

For the month of January:

• Median Sales Price increased 4.2% to $270,000
• Days on Market increased 1.5% to 66
• Percent of Original List Price Received decreased 0.1% to 97.0%
• Months Supply of Homes For Sale decreased 16.7% to 1.5

All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

For Week Ending February 1, 2020

A newly released report from the U.S. Census Bureau shows in Q4 2019 the national homeownership rate rose to 65.1%. This is the highest level since Q3 2013 when the homeownership rate was 65.3%. For perspective, the national homeownership rate since 2000 peaked at 69.1% in Q1 2005 and was at its lowest at 62.9% in Q2 2016. The increase in the homeownership rate since Q2 2016 represents nearly 2.7 million additional owner-occupied homes.

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

• New Listings increased 4.5% to 978
• Pending Sales increased 6.1% to 904
• Inventory decreased 15.5% to 7,621

For the month of December:

• Median Sales Price increased 7.9% to $278,200
• Days on Market decreased 1.8% to 56
• Percent of Original List Price Received increased 0.5% to 97.3%
• Months Supply of Homes For Sale decreased 15.8% to 1.6

All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

For Week Ending January 25, 2020

CoreLogic’s latest Single-Family Rent Index report saw the cost of renting single-family homes, including condos, up 3% in November 2019 compared to November 2018. According to the report, rent prices started climbing in 2010 and have stabilized around an annualized rate of 3% since early 2019. With the cost of rent continuing to trend upward, it makes sense that many are considering paying their own mortgage, instead of their landlord’s, by becoming first-time homeowners.

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

• New Listings decreased 5.2% to 916
• Pending Sales decreased 0.9% to 795
• Inventory decreased 14.9% to 7,751

For the month of December:

• Median Sales Price increased 8.2% to $279,000
• Days on Market decreased 1.8% to 56
• Percent of Original List Price Received increased 0.5% to 97.3%
• Months Supply of Homes For Sale decreased 15.8% to 1.6

All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.