For 2020, the National Association of REALTORS’ Chief Economist, Lawrence Yun, sees good news for home prices.
Monday, February 24th, 2020
Posted in Monthly Skinny Video
Monday, February 24th, 2020
February 22, 2020
Latest housing report also shows falling inventory and rising prices
According to the latest housing report from the Minneapolis Area REALTORS® and the Saint Paul Association of REALTORS®, Twin Cities residential real estate started 2020 on solid but still uneven footing. Buyers were eager to ignite the spring market early, spurred by incredibly low mortgage rates and favorable weather, especially compared to last year. Tempering the market are falling inventory and rising prices.
“Buyers were again spoiled by rates that no one expected would be this low,” said Linda Rogers, President of Minneapolis Area REALTORS®. “That’s fueled more sales activity but we’re still missing the inventory piece.”
Sellers listed fewer homes for sale while buyers signed more purchase agreements and closed more deals. As a result, the number of homes for sale was almost 15 percent lower than last January. The supply squeeze wasn’t felt evenly across price points, though. While inventory of homes priced below $250,000 fell, the number of listings priced between $250,000 and $500,000 as well as $500,000 to $1,000,000 increased last month.
“The year is off to a solid start and metro area communities each have a unique story to tell when it comes to housing availability and price,” said Patrick Ruble, President of St. Paul Area Association of REALTORS®.
Some of the most competitive markets experiencing strong price growth are those with relatively higher levels of affordable or entry-level homes, such as Fridley, Vadnais Heights, Richfield, Brooklyn Center and Bloomington. That’s where multiple offers and homes selling for over list price are more common. Both millennial first-time buyers and downsizing empty nesters are competing over this limited supply of affordable homes close to the core cities. The move-up and upper-bracket home price segments are more balanced and better supplied.
January 2020 by the numbers (compared to a year ago)
- Sellers listed 4,330 properties on the market, a 1.8 percent decrease from last January
- Buyers closed on 2,870 homes, a 5.4 percent increase
- Inventory levels declined 14.9 percent to 7,595 units
- Months Supply of Inventory was down 16.7 percent to 5 months (5-6 months is balanced)
- The Median Sales Price rose 4.2 percent to $270,000
- Cumulative Days on Market increased 1.5 percent to 66 days, on average (median of 43)
- Changes in Sales activity varied by market segment
- Single family sales rose 5.5 percent; condo sales fell 3.5 percent; townhome sales rose 11.7 percent
- Traditional sales increased 7.1 percent; foreclosure sales dropped 26.0 percent; short sales fell 52.6 percent
- Previously owned sales were up 5.5 percent; new construction sales climbed 11.1 percent
Posted in The Skinny
Monday, February 17th, 2020
For Week Ending February 8, 2020
The impact of the spread of Coronavirus continues to grow as the 30-year fixed-rate mortgage fell to 3.51% last week. Lawrence Yun, chief economist at the National Association of REALTORS®, explained that the upper-end of the housing market may soften with the temporary loss of Chinese buyers. “China has been the most important source of foreign demand for real estate,” he explained. Until temporary travel bans are lifted, many potential Chinese buyers will be restricted from visiting the U.S., which will in turn reduce the number of active home buyers, particularly at the high end of the market.
In the Twin Cities region, for the week ending February 8:
- New Listings increased 14.1% to 1,315
- Pending Sales increased 18.4% to 960
- Inventory decreased 15.6% to 7,556
For the month of January:
- Median Sales Price increased 4.2% to $270,000
- Days on Market increased 1.5% to 66
- Percent of Original List Price Received decreased 0.1% to 97.0%
- Months Supply of Homes For Sale decreased 16.7% to 1.5
All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Posted in Weekly Report
Thursday, February 13th, 2020
“Buyer demand continues to be strong, especially given the supply constraints.”
Posted in Monthly Skinny Video
Monday, February 10th, 2020
For Week Ending February 1, 2020
A newly released report from the U.S. Census Bureau shows in Q4 2019 the national homeownership rate rose to 65.1%. This is the highest level since Q3 2013 when the homeownership rate was 65.3%. For perspective, the national homeownership rate since 2000 peaked at 69.1% in Q1 2005 and was at its lowest at 62.9% in Q2 2016. The increase in the homeownership rate since Q2 2016 represents nearly 2.7 million additional owner-occupied homes.
In the Twin Cities region, for the week ending February 1:
- New Listings increased 4.5% to 978
- Pending Sales increased 6.1% to 904
- Inventory decreased 15.5% to 7,621
For the month of December:
- Median Sales Price increased 7.9% to $278,200
- Days on Market decreased 1.8% to 56
- Percent of Original List Price Received increased 0.5% to 97.3%
- Months Supply of Homes For Sale decreased 15.8% to 1.6
All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Posted in Weekly Report