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 Emily Green (2014 President, Minneapolis Area Association of REALTORS®), video produced by Chelsie Lopez.
Monday, April 28th, 2014
Science fairs, book swaps and spring sports have kept winter-weary minds off of what superficially appears to be a mixed beginning to what is typically a cheery second quarter. Most economists, however, believe that the coalescence of market normalization, an improving sales mix and good housing starts are all working behind the scenes to alleviate the growing pains of a market in recovery. Housing is already starting to see signs of upward price pressure, rising consumer confidence and some inventory relief.
In the Twin Cities region, for the week ending April 19:
- New Listings decreased 2.8% to 1,571
- Pending Sales decreased 5.3% to 1,227
- Inventory decreased 0.5% to 14,148
For the month of March:
- Median Sales Price increased 7.6% to $189,950
- Days on Market decreased 12.0% to 95
- Percent of Original List Price Received remained flat at 95.0
- Months Supply of Inventory decreased 6.1% to 3.1
All comparisons are to 2013
Click here for the full Weekly Market Activity Report. From The Skinny.
Posted in Weekly Report
Monday, April 21st, 2014
There’s no dainty tiptoeing through the tulips this spring, as market flower fields are blooming with speculation. Sales and new listings are up, and hope for a fluorescent spring market is flourishing. An increase in inventory is the desire at this point in the season, as more properties for sale should nudge first-time home buyers to sow their fledgling seeds in the housing market and encourage move-up buyers to say goodbye to familiar flower beds in favor of an upsized plot across town.
In the Twin Cities region, for the week ending April 12:
- New Listings increased 19.9% to 1,925
- Pending Sales increased 1.8% to 1,157
- Inventory decreased 2.4% to 13,736
For the month of March:
- Median Sales Price increased 7.6% to $190,000
- Days on Market decreased 11.1% to 96
- Percent of Original List Price Received remained flat at 95.0
- Months Supply of Inventory decreased 6.1% to 3.1
All comparisons are to 2013
Click here for the full Weekly Market Activity Report. From The Skinny.
Posted in Weekly Report
Monday, April 14th, 2014
April reporting brings hope as tulips and FOR SALE signs begin to brighten the housing landscape. Along with that hope is a little uncertainty about some regions’ year-over-year sales and inventory figures. Fear not, however, because rates are still lower than most years in modern memory, there’s proof of an improving mix of properties for sale on the national landscape and upward price pressure continues to motivate potential home buyers. Watch listing activity closely for more hints as to what may be unearthed next.
In the Twin Cities region, for the week ending April 5:
- New Listings increased 6.1% to 1,839
- Pending Sales decreased 7.1% to 1,026
- Inventory decreased 3.6% to 13,241
For the month of March:
- Median Sales Price increased 7.6% to $190,000
- Days on Market decreased 12.0% to 95
- Percent of Original List Price Received remained flat at 95.0
- Months Supply of Inventory decreased 6.1% to 3.1
All comparisons are to 2013
Click here for the full Weekly Market Activity Report. From The Skinny.
Posted in Weekly Report
Monday, April 14th, 2014
After being cooped up for a long, cold winter, homeowners in the 13-county Minneapolis-St. Paul metropolitan area showed renewed signs of optimism in March. Seller activity rose 5.5 percent to 6,492 newly listed homes, a crucial increase toward fueling buyer demand. Inventory levels are still hovering near a 10-year low, but consumers should have more options to choose from this year compared to recent years. Pending sales were 8.4 percent lower, resulting from a desired shift to less foreclosure and short sale activity. Most indicators continue to suggest ongoing recovery and stabilization.
It’s imperative to understand market activity by segment. Buyers are now leaning toward traditional purchases first because they are making up a greater share of the marketplace. These properties also tend to be in better condition, many come with warranties and traditional sellers tend to be more cooperative than banks. New traditional listings rose 22.1 percent compared to March 2013, while foreclosure and short sale new listings fell 39.9 and 53.8 percent, respectively.
On the demand side, pending sales declined 8.4 percent to 4,141 properties overall, which still reflects less distressed market activity. Once again, traditional pending sales were up 2.6 percent while pending foreclosure and short sales fell 32.2 and 45.1 percent, respectively. Consumers shopping for homes now have 13,086 properties to choose from – or 4.1 percent fewer than last year at this time, marking the smallest year-over-year decline since November 2013.
“There’s a lot of excitement and positive energy out there, especially among sellers,” said Emily Green, President of the Minneapolis Area Association of REALTORS® (MAAR). “Some would-be sellers have been lifted out from underwater by rising prices and less competition from foreclosures, while other move-up buyers are also eager to buy.”
The lowest price point of the market is evaporating. As a result, the median sales price for the metro rose 7.6 percent to $190,000, marking 25 straight months of year-over-year price gains. Last March, foreclosures and short sales made up 25.2 percent of all new listings. This March, they made up just 13.3 percent. For closed sales, the number fell from 37.6 to 26.6 percent.
On average, homes spent just 95 days on the market, 12.0 percent less than last March. Sellers are receiving an average of 95.0 percent of their original list price. The Twin Cities now has 3.1 months’ supply of inventory, suggesting a favorable selling environment. Importantly, interest rates remain affordable and well below their long-term average.
“Traditional properties are dominating the market again,” said Mike Hoffman, MAAR President-Elect. “As distressed product clears the pipeline, consumers are more likely to embark upon negotiations and transactions with people rather than banks.”
Posted in The Skinny