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 Carson Brooks (2014 Secretary, Minneapolis Area Association of REALTORS®), video produced by Chelsie Lopez.
Monday, March 24th, 2014
Spring is finally beginning to show its face after a long, cold winter in many parts of the country. Generally, housing activity is waking up as well. It’s been a slow start to the selling season thus far, but many believe this has more to do with the weather and lack of inventory than it does demand. Any gains may be moderate compared to a year ago, but most experts agree that market normalcy and stabilization are upon us.
In the Twin Cities region, for the week ending March 15:
- New Listings decreased 0.9% to 1,462
- Pending Sales decreased 13.1% to 912
- Inventory decreased 8.2% to 12,475
For the month of February:
- Median Sales Price increased 14.4% to $183,000
- Days on Market decreased 10.8% to 99
- Percent of Original List Price Received decreased 0.2% to 93.6%
- Months Supply of Inventory decreased 12.5% to 2.8
All comparisons are to 2013
Click here for the full Weekly Market Activity Report. From The Skinny.
Posted in Weekly Report
Monday, March 17th, 2014
More daylight should help bring more hours of long-desired activity to the housing market. As the spring market dawns, sellers may see prices continue to rise and more homes should find their way to market. As long as the economy continues to gain momentum and mortgages remain low, previously underwater sellers and eager buyers should find opportunities to talk business.
In the Twin Cities region, for the week ending March 8:
- New Listings increased 6.5% to 1,454
- Pending Sales decreased 14.7% to 821
- Inventory decreased 9.4% to 12,118
For the month of February:
- Median Sales Price increased 14.4% to $183,000
- Days on Market decreased 10.8% to 99
- Percent of Original List Price Received decreased 0.2% to 93.6%
- Months Supply of Inventory decreased 12.5% to 2.8
All comparisons are to 2013
Click here for the full Weekly Market Activity Report. From The Skinny.
Posted in Weekly Report
Monday, March 17th, 2014
Minneapolis, Minnesota (March 12, 2014) – The 13-county Minneapolis-St. Paul metropolitan area housing market was negatively affected by the extreme winter. Inventory levels are also still hovering at a 10-year low, meaning consumers have far less product to purchase than in recent years. Another factor dragging down the headline numbers is the shift away from distressed homes and back toward traditional activity. Most indicators continue to suggest ongoing recovery, stabilization and normalization. Spring will offer better clues as to the health of the Twin Cities housing market.
Although new listings declined 5.0 percent to 4,616 overall, seller activity is likely to pick up during the spring and summer months. Additionally, and as has been the case for 22 consecutive months, new listings in the higher-priced traditional segment rose 9.1 percent over the same period, while foreclosure and short sale new listings fell 34.5 and 54.6 percent, respectively.
On the demand side, closed sales were down 14.0 percent to 2,465 properties overall, which speaks to the low number of weather-impeded purchase agreements entered into during January. Once again, traditional closed sales were up 6.7 percent while foreclosure sales and short sales fell 33.4 and 61.9 percent, respectively. Consumers shopping for homes now have 11,975 properties to choose from – or 9.6 percent fewer than February 2013.
“It was an interesting month,” said Emily Green, President of the Minneapolis Area Association of REALTORS® (MAAR). “While the market shifts back toward where it was before the bubble, we expect to see foreclosures and short sales become less prevalent, which can dilute overall numbers. Then you have the weather.”
As a result of this shift, the median sales price for the metro rose a strong 14.4 percent to $183,044, officially marking 24 straight month of year-over-year median price gains. Last February, foreclosures and short sales comprised 43.9 percent of all closed sales. This February, these segments made up 30.3 percent of all sales. Traditional homes are selling at a median price of $210,000; foreclosures for $131,100; short sales for $150,000.
On average, homes spent just 99 days on the market, 10.8 percent less than last year. Sellers are receiving an average of 93.5 percent of their original list price. The Twin Cities now has 2.8 months’ supply of inventory, suggesting a favorable selling environment. Importantly, interest rates remain affordable and well below their long-term average.
“The fundamentals haven’t changed.” said Mike Hoffman, MAAR President-Elect. “Our local economy is diverse and growing and so is our population. It’s important not to read too much into minor fluctuations like this.”
Posted in The Skinny
Monday, March 10th, 2014
Extreme winter weather may be partly responsible for sluggish durable goods sales, consumer spending, business inventories and exports. As more income goes toward heating bills, four-wheel alignments, frozen pipes and other winter expenses, there is less (or no) remaining discretionary income. Several southern cities were paralyzed by winter storms, costing the economy billions in lost productivity, while consumers were forced to hunker down for much of the winter in the Midwest and Northeast. Consumers should be more than ready for warmer days ahead.
In the Twin Cities region, for the week ending March 1:
- New Listings decreased 12.6% to 1,245
- Pending Sales decreased 8.6% to 901
- Inventory decreased 9.1% to 12,079
For the month of February:
- Median Sales Price increased 14.4% to $183,044
- Days on Market decreased 10.8% to 99
- Percent of Original List Price Received decreased 0.3% to 93.5%
- Months Supply of Inventory decreased 12.5% to 2.8
All comparisons are to 2013
Click here for the full Weekly Market Activity Report.From The Skinny.
Posted in Weekly Report