Ted Bergstrom

For Week Ending July 10, 2021

As sales prices surge, housing affordability continues to decline, despite historically low interest rates. According to the National Association of REALTORS® Housing Affordability Index, the median family income increased by only 1.2% in May, while the monthly mortgage payment rose to $1,204, a 20% gain compared to a year ago. Homeowners are allocating more of their income toward their mortgage, putting additional strain on consumers’ pocketbooks amid rising inflation, as the Consumer Price Index jumped 5.4% in the year through June, according to the Labor Department, the largest year-over-year gain since August 2008.

In the Twin Cities region, for the week ending July 10:

• New Listings decreased 7.8% to 1,751
• Pending Sales decreased 30.1% to 1,103
• Inventory decreased 32.6% to 6,709

For the month of June:

• Median Sales Price increased 14.8% to $350,000
• Days on Market decreased 52.4% to 20
• Percent of Original List Price Received increased 4.5% to 104.1%
• Months Supply of Homes For Sale decreased 42.9% to 1.2

All comparisons are to 2020

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

For Week Ending July 3, 2021

Mortgage applications decreased 1.8% last week, falling to the lowest level since January 2020, according to the Mortgage Bankers Association’s seasonally adjusted index, with declines noted in both refinance and purchase applications. Rising home prices and low inventory are responsible for the decline, even as mortgage rates remain low, causing experts to speculate whether the roaring housing market is finally cooling down.

In the Twin Cities region, for the week ending July 3:

• New Listings decreased 1.9% to 1,343
• Pending Sales increased 4.3% to 1,610
• Inventory decreased 33.5% to 6,906

For the month of April:

• Median Sales Price increased 16.6% to $344,000
• Days on Market decreased 41.5% to 24
• Percent of Original List Price Received increased 4.4% to 104.0%
• Months Supply of Homes For Sale decreased 50.0% to 1.1

All comparisons are to 2020

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

For Week Ending June 26, 2021

The U.S. Department of Labor reported unemployment claims fell to 364,000 for the week ending June 26, down 51,000 from the previous week’s revised total and the lowest level for initial jobless claims since the pandemic began. Nationwide, the existing-home median sales price set a new record high of $350,300, a 23.6% year-over-year increase, according to the National Association of REALTORS®. Some economists are predicting an increased supply of homes for sale in coming months, which may help to moderate home price increases later in the year.

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

• New Listings increased 5.4% to 1,827
• Pending Sales decreased 3.9% to 1,598
• Inventory decreased 34.2% to 6,898

For the month of April:

• Median Sales Price increased 16.6% to $344,000
• Days on Market decreased 41.5% to 24
• Percent of Original List Price Received increased 4.4% to 104.0%
• Months Supply of Homes For Sale decreased 50.0% to 1.1

All comparisons are to 2020

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

For Week Ending June 12, 2021

U.S. median rental prices increased 5.5% year over year for an average of $1,527 in May, exceeding pre-pandemic figures and putting rents at their highest level in two years, according to realtor.com’s Monthly Rental Report. Meanwhile, after months of record highs, lumber prices have finally begun falling, with futures for July delivery down 41% since May’s record high, their biggest ever weekly loss, Bloomberg reports. Still, demand for housing remains strong as ever, with mortgage and refinance applications up from the previous week, according to the Mortgage Bankers Association.

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

• New Listings increased 9.5% to 1,894
• Pending Sales increased 4.6% to 1,531
• Inventory decreased 42.4% to 6,109

For the month of April:

• Median Sales Price increased 16.6% to $343,750
• Days on Market decreased 41.5% to 24
• Percent of Original List Price Received increased 4.4% to 104.0%
• Months Supply of Homes For Sale decreased 54.5% to 1.0

All comparisons are to 2020

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

For Week Ending June 5, 2021

Fannie Mae’s new refinancing program, RefiNow™, which offers qualifying homeowners with a Fannie Mae-owned mortgage new options for refinancing their loans, officially starts on June 5th. Borrowers at or below 80% of the area’s median income may qualify for this new program, which can lower interest rates and reduce monthly payments by $50 or more. Homeowners can learn more about qualifications and their options by contacting their lender or visiting KnowYourOptions.com.

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

• New Listings decreased 3.5% to 1,704
• Pending Sales decreased 21.3% to 1,185
• Inventory decreased 44.3% to 5,892

For the month of April:

• Median Sales Price increased 10.2% to $336,250
• Days on Market decreased 34.0% to 31
• Percent of Original List Price Received increased 3.4% to 103.3%
• Months Supply of Homes For Sale decreased 47.6% to 1.1

All comparisons are to 2020

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