With the Olympics in full swing, many are noting that housing has already medaled in several arenas. Sellers waiting for firmer prices should take a fresh look at the data. Buyers nervous about a declining market should do the same. Key changes continue to take place that set the stage for a more meaningful recovery. And you thought interest rates couldn’t get any lower? Mortgage rates hit a fresh record low last week, scraping in at 3.65 percent on a 30-year fixed. That’s cheap money, if ever there were such a thing.
In the Twin Cities region, for the week ending July 21:
- New Listings increased 1.2% to 1,382
- Pending Sales increased 22.7% to 1,145
- Inventory decreased 30.7% to 17,174
For the month of June:
- Median Sales Price increased 10.3% to $178,750
- Days on Market decreased 22.0% to 113
- Percent of Original List Price Received increased 4.0% to 95.1%
- Months Supply of Inventory decreased 43.0% to 4.5
It’s been a relatively pleasant year for the business of residential real estate. Case in point, the June 2012 NAHB/Wells Fargo Housing Market Index (HMI) rose to its highest level since May 2007. And for the first time since 2005, housing is on track for being a net positive contributor to national GDP in 2012. Speaking on behalf of America, it’s about time. Throw in some real price gains, and you can expect holdout buyers to be less afraid of buying and sellers to be less afraid of listing.
In the Twin Cities region, for the week ending July 14:
- New Listings increased 6.2% to 1,536
- Pending Sales increased 13.4% to 1,125
- Inventory decreased 30.7% to 17,188
For the month of June:
- Median Sales Price increased 10.4% to $179,000
- Days on Market decreased 21.9% to 113
- Percent of Original List Price Received increased 4.1% to 95.1%
- Months Supply of Inventory decreased 43.3% to 4.5
With the second quarter now in the books, seasonal peaks and valleys should start to become apparent. Even if activity begins to slow for the remainder of 2012, gains are still likely when compared to the same time last year. Housing demand has been strong, supply levels have been falling and prices are turning a corner in many local markets. Keep a watchful eye toward market times, percent of list price received at sale and months of supply. Percent of new listings and closed sales that are in foreclosure or short sale status also serve as market indicators.
In the Twin Cities region, for the week ending July 7:
- New Listings decreased 21.9% to 970
- Pending Sales increased 24.6% to 892
- Inventory decreased 30.8% to 17,134
For the month of June:
- Median Sales Price increased 10.4% to $179,000
- Days on Market decreased 22.0% to 113
- Percent of Original List Price Received increased 4.0% to 95.1%
- Months Supply of Inventory decreased 44.0% to 4.5
Summer heat waves roll across the northland as election season also heats up. Meanwhile, as the mercury and partisan rhetoric both escalate, residential real estate continues to show signs consistent with market recovery. For the current round of numbers, both buyer and seller activity levels were higher than last year at this time. Buyers have been taking advantage of historic affordability levels for some time, but renewed seller confidence is a more recent development and some would even call it an encouraging omen, as long as supply levels don’t exceed a prior apex.
In the Twin Cities region, for the week ending June 30:
- New Listings increased 0.1% to 1,414
- Pending Sales increased 20.4% to 1,194
- Inventory decreased 31.0% to 17,417
For the month of June:
- Median Sales Price increased 10.4% to $179,000
- Days on Market decreased 22.0% to 113
- Percent of Original List Price Received increased 4.0% to 95.0%
- Months Supply of Inventory decreased 44.7% to 4.4