Where has the Twin Cities real estate market been and where is it heading? This monthly summary provides an overview of current trends and projections for future activity. Narrated by David Arbit, Research Manager at the Minneapolis Area Association of REALTORS®, video produced by Chelsie Lopez.
Monday, September 15th, 2014
Normalization is the word of the day when describing real estate markets these days. Market recovery has taken hold in most parts of the nation, and as those markets approach prior peaks, price growth may come in line with more normal historical levels. In the short-term, this may mean some metrics exhibit year-over- year declines, but the long-term trend is still higher. While everyone is entitled to their theories, the slow-but-steady path we’ve seen in recent months is beginning to match a pattern we have seen for decades.
In the Twin Cities region, for the week ending September 6:
- New Listings increased 9.0% to 1,653
- Pending Sales increased 1.4% to 879
- Inventory increased 9.7% to 18,320
For the month of August:
- Median Sales Price increased 5.3% to $219,000
- Days on Market decreased 2.9% to 68
- Percent of Original List Price Received decreased 0.7% to 96.3%
- Months Supply of Inventory increased 15.8% to 4.4
All comparisons are to 2013
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Posted in Weekly Report
Monday, September 15th, 2014
By Aubray Erhardt on Thursday, September 11th, 2014
Inventory in the 13-county Minneapolis-St. Paul metropolitan area is up 8.7 percent from last year. August was only the sixth month of year-over-year inventory gains. Consumers now have 18,205 homes from which to choose. New listings were flat, increasing just 0.1 percent to 6,958, while market-wide pending sales decreased 7.0 percent to 4,802. Overall closed sales were down 7.3 percent from last year to 5,291 units.
With 4.4 months supply of inventory, the absorption rate is consistent with a transitioning market approaching balanced territory. Sellers are still seeing multiple offers on quality listings but buyers don’t have to compete quite as hard over limited supply. The sales mix continued to favor traditional homes that sell in less time and at higher price points. The median sales price rose 5.3 percent to $219,001. That’s the highest August median sales price since 2007, and the 30th consecutive year-over-year increase.
Prices hinge upon a variety of factors, including supply and demand but also changes in market share based on area or segment. While new listings rose only 0.1 percent overall, traditional new listings rallied 10.9 percent higher while foreclosure and short sale new listings fell 49.3 percent and 46.6 percent, respectively. Similarly, overall closed sales were down 7.3 percent, but traditional closed sales rose 4.6 percent while foreclosure and short sale closings fell 50.4 percent and 58.0 percent. Market-wide inventory levels increased 8.7 percent but traditional inventory surged 24.5 percent while foreclosure and short sale inventory levels both fell dramatically.
Contrary to most economists’ forecasts, interest rates remain lower than last year. That’s helped buyers take advantage of the attractive affordability environment. The Twin Cities housing affordability index was mostly flat, down just 1.1 percent from last August to 176 – meaning the median household income was 176 percent of what is necessary (or 76 percent greater than the minimum needed) to qualify for the median-priced home under current interest rates. While the affordability index is below its peak in 2012, it remains well above its long-term average.
Those shopping for homes now have the largest pool of traditional properties to choose from since mid-2010. A growing share of activity now falls into the more desirable traditional segment – 90.6 percent of new listings, 89.4 percent of closed sales and 88.0 percent of all inventory. Those are the highest figures since April 2007, August 2007 and July 2007, respectively. Days on market fell 2.9 percent to 68 days; the median list price rose 6.9 percent $235,000; and price per square foot rose 5.3 percent to $126.
Posted in The Skinny
Tuesday, September 9th, 2014
The Bureau of Labor Statistics reported in August that total nonfarm payroll employment increased by more than 200,000 in July, and the national unemployment level is holding relatively steady at 6.2 percent. Combined with a reported increase in consumer confidence by Reuters, the U.S. economy is looking pretty spiffy. So long as quality paying jobs continue to be added to the mix and housing policy remains welcoming to those who want to buy and sell, there is reason to remain optimistic about residential real estate.
In the Twin Cities region, for the week ending August 30:
- New Listings increased 0.6% to 1,365
- Pending Sales decreased 10.8% to 1,087
- Inventory increased 9.9% to 18,627
For the month of August:
- Median Sales Price increased 5.3% to $219,001
- Days on Market decreased 2.9% to 68
- Percent of Original List Price Received decreased 0.8% to 96.2%
- Months Supply of Inventory increased 15.8% to 4.4
All comparisons are to 2013
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Posted in Weekly Report
Tuesday, September 2nd, 2014
As summer begins to wane, the total number of home sales will gradually drop like the leaves of fall. And although autumn is nearing, that doesn’t necessarily mean that the changing of the season will bring market chills. Because even as sales drop, sales prices are still mostly on the rise and inventory is stabilizing all across the country. And let’s not forget that lower sales figures are also due to fewer distressed properties on the market.
In the Twin Cities region, for the week ending August 23:
- New Listings increased 3.5% to 1,539
- Pending Sales increased 4.5% to 1,175
- Inventory increased 10.1% to 18,755
For the month of July:
- Median Sales Price increased 3.4% to $215,000
- Days on Market decreased 5.6% to 68
- Percent of Original List Price Received decreased 0.7% to 96.8%
- Months Supply of Inventory increased 15.8% to 4.4
All comparisons are to 2013
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Posted in Weekly Report