Weekly Market Report

For Week Ending November 26, 2022

The share of first-time homebuyers has fallen to an all-time low, with first-time buyers making up 26% of all buyers for the fiscal year ending June 2022, while the age of the typical first-time buyer increased to 36 years old, an all-time high, according to the National Association of REALTORS® Profile of Home Buyers and Sellers, which has been published since 1981. Higher borrowing costs and a lack of affordable housing have forced many buyers out of the market this year, and inflation and rising rents have made it more difficult to save up for a down payment.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING NOVEMBER 26:

  • New Listings decreased 10.4% to 456
  • Pending Sales decreased 39.8% to 515
  • Inventory increased 12.3% to 8,205

FOR THE MONTH OF OCTOBER:

  • Median Sales Price increased 4.6% to $355,500
  • Days on Market increased 33.3% to 36
  • Percent of Original List Price Received decreased 2.0% to 98.3%
  • Months Supply of Homes For Sale increased 33.3% to 2.0

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Weekly Market Report

For Week Ending November 19, 2022

Housing supply continues to grow nationwide, as higher borrowing costs cause home sales to slow. According to Realtor.com’s Monthly Housing Market Trends Report, the national inventory of active listings increased 33.5% year-over-year in October, the highest inventory level since 2020. As a result, local buyers may find they have more options to choose from, and with homes spending more days on market compared to the same period last year, a bit more time to shop around as well.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING NOVEMBER 19:

  • New Listings decreased 1.8% to 975
  • Pending Sales decreased 42.6% to 671
  • Inventory increased 11.6% to 8,536

FOR THE MONTH OF OCTOBER:

  • Median Sales Price increased 4.6% to $355,500
  • Days on Market increased 33.3% to 36
  • Percent of Original List Price Received decreased 2.0% to 98.3%
  • Months Supply of Homes For Sale increased 26.7% to 1.9

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Weekly Market Report

For Week Ending November 12, 2022

Homeownership was up slightly in the third quarter of 2022, with the percentage of owner-occupied households rising 0.6 points from the same period last year to 66% nationally, according to Federal Reserve Economic Data (FRED). The homeownership rate has continued to increase despite higher sales prices and a significant increase in mortgage rates this year, illustrating that buyer demand persists, especially in markets where the median listing prices were below the national median.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING NOVEMBER 12:

  • New Listings decreased 23.2% to 866
  • Pending Sales decreased 42.8% to 691
  • Inventory increased 8.6% to 8,732

FOR THE MONTH OF OCTOBER:

  • Median Sales Price increased 4.6% to $355,500
  • Days on Market increased 33.3% to 36
  • Percent of Original List Price Received decreased 2.1% to 98.2%
  • Months Supply of Homes For Sale increased 26.7% to 1.9

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Higher rates continue to cool sales while prices continue their ascent

  • Buyer activity dropped 37.7 percent with 3,611 pending sales
  • Median sales price of Twin Cities homes rose 4.7 percent to $356,002
  • 30-Year mortgage rates are averaging around 7.0 percent, the highest since 2002

(November 15, 2022) – According to new data from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, pending sales were down by over a third in October compared to last year. The decline in buyer activity is largely a response to increased mortgage interest rates and many completing purchases in the last couple years. Meanwhile, home prices continue their ascent.

SALES & LISTINGS

Several rate hikes by the Federal Reserve have had their desired effect: to slow borrowing activity and slow the demand for capital. This has significantly cooled home sales activity across the nation, including in the Twin Cities. In October, buyers saw their mortgage interest rates increase to 7.1 percent, a 20-year record. Facing higher monthly payments (about 35.0 percent higher), buyers were reluctant to sign contracts. Pending sales fell 37.7 percent to 3,611 purchase agreements and 4,035 transactions closed, down 33.5 percent. The Twin Cities has not seen a year-over-year decline in demand this substantial since the summer of 2010.

“We quickly forget how the last two years were extraordinary and historic years for housing. There will always be a lull after that. But these rates are exacerbating this,” according to Denise Mazone, President of Minneapolis Area REALTORS®. “The reality is that this is a more typical market but doesn’t feel that way compared to the last few years. Sellers getting 104.0% of their list price in 4 hours with 40 offers is neither normal nor sustainable.”

Seller activity was also down as many hesitated to become buyers and trade in their favorable rates for higher payments. Softer demand has meant homes spend more time on the market—36 days on average or nine days longer than last October but one day longer than 2020. Sellers listed 5,019 properties on the market, 19.7 percent fewer than this time in 2021. Those that did list tended to accept a smaller share of their asking price, averaging 98.2 percent of list price.

INVENTORY & HOME PRICES

The median home price in the Twin Cities increased by 4.7 percent to $356,002. While up, the increase is down from some double-digit price gains in 2020 and 2021. In fact, it’s the smallest increase since the onset of the pandemic. Although the rate of price growth is slowing, prices continue rising as both the homes and buyers in the market skew toward higher price points. Inventory levels remain tight despite the recent shifts toward a more balanced market. The softening in demand has been met with a similar decline in new listings, keeping the balance relatively tight.

“Between changing rates, inflation, an election and a possible recession, there’s a lot of uncertainty in the air right now,” said Mark Mason, President of the Saint Paul Area Association of REALTORS®. “Despite all that, our region still has thousands of eager buyers every month searching for their next home.” October ended with 8,756 homes for sale, 5.1 percent more than last year. Weaker buyer activity has shifted our industry back towards a more balanced marketplace (4-6 months of supply), but buyers should understand we are still in a seller’s market. Month’s supply of inventory rose 26.7 percent to 1.9 months.

LOCATION & PROPERTY TYPE

Market activity varies by area, price point and property type. New home sales fell 18.3 percent while existing home sales were down 33.8 percent. Single family sales fell 32.2 percent, condo sales declined 36.4 percent and townhome sales were down 33.1 percent. Sales in Minneapolis decreased 30.0 percent while Saint Paul sales fell 33.4 percent. Cities like Corcoran, Elko New Market, St. Paul Park and Belle Plaine saw the largest sales gains while Princeton, Centerville, East Bethel and North St. Paul all had notably lower demand than last year.

For more information on weekly and monthly housing numbers visit www.mplsrealtor.com or www.spaar.com

OCTOBER 2022 HOUSING TAKEAWAYS (COMPARED TO A YEAR AGO)

  • Sellers listed 5,019 properties on the market, a 19.7 percent decrease from last October
  • Buyers signed 3,611 purchase agreements, down 37.7 percent (4,035 closed sales, down 33.5 percent)
  • Inventory levels grew 5.1 percent to 8,756 units
  • Month’s Supply of Inventory rose 26.7 percent to 1.9 months (4-6 months is balanced)
  • The Median Sales Price rose 4.7 percent to $356,002
  • Days on Market rose 33.3 percent to 36 days, on average (median of 22 days, up 57.1 percent)
  • Changes in Sales activity varied by market segment
    • Single family sales decreased 32.2 percent; Condo sales were down 36.4 percent & townhouse sales fell 33.1 percent
    • Traditional sales declined 33.1 percent; foreclosure sales rose 45.0 percent; short sales were unchanged from last year
    • Previously owned sales decreased 33.8 percent; new construction sales declined 18.3 percent


From The Skinny Blog.

Weekly Market Report

For Week Ending November 5, 2022

With the average 30-year fixed-rate mortgage hovering around 7%, interest in adjustable-rate mortgages (ARM) continues to grow, as buyers look to save money any way they can. Freddie Mac reports the rate for a 5/1 ARM was a full point lower than the popular 30-year loan the week ending 11/4/22, while the share of homebuyers applying for ARMs has increased significantly since the start of the year, representing about 12% of total applications, according to the Mortgage Bankers Association.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING NOVEMBER 5:

  • New Listings decreased 22.4% to 965
  • Pending Sales decreased 37.4% to 751
  • Inventory increased 7.8% to 8,858

FOR THE MONTH OF SEPTEMBER:

  • Median Sales Price increased 6.3% to $362,100
  • Days on Market increased 39.1% to 32
  • Percent of Original List Price Received decreased 2.3% to 98.9%
  • Months Supply of Homes For Sale increased 18.8% to 1.9

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Weekly Market Report

For Week Ending October 29, 2022

Seller profits are beginning to ease, as home sales dip and sales prices soften nationwide. According to ATTOM, profit margins on median-priced single-family home and condo sales fell 3% from the second to the third quarter of 2022 in nearly 70% of the 186 metropolitan areas tracked, representing the largest quarterly decline since 2011. Despite the drop, investment returns remain historically high, with profits up compared to the same period last year.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING OCTOBER 29:

  • New Listings decreased 21.7% to 1,055
  • Pending Sales decreased 41.2% to 794
  • Inventory increased 5.4% to 9,015

FOR THE MONTH OF SEPTEMBER:

  • Median Sales Price increased 6.3% to $362,050
  • Days on Market increased 39.1% to 32
  • Percent of Original List Price Received decreased 2.3% to 98.9%
  • Months Supply of Homes For Sale increased 18.8% to 1.9

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Weekly Market Report

For Week Ending October 22, 2022

As the housing market rebalances, many homeowners are finding they’re having to put more effort into selling their home to get the best deal possible compared to earlier in the pandemic, when conditions were different and a “For Sale” sign would often fetch multiple offers. Trends have changed, and with home sales down nationally, local REALTORS® are reporting a rise in price reductions, seller concessions, and homebuying contingencies, with a growing number of sellers needing to make repairs prior to sale.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING OCTOBER 22:

  • New Listings decreased 20.8% to 1,105
  • Pending Sales decreased 34.2% to 827
  • Inventory increased 4.6% to 9,059

FOR THE MONTH OF SEPTEMBER:

  • Median Sales Price increased 6.3% to $362,100
  • Days on Market increased 39.1% to 32
  • Percent of Original List Price Received decreased 2.3% to 98.9%
  • Months Supply of Homes For Sale increased 18.8% to 1.9

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Weekly Market Report

For Week Ending October 15, 2022

Median national rents fell slightly to $1,759 in September, marking the second consecutive month rents have dropped, according to a recent report from Realtor.com. Although median rents remain 7.8% higher than a year ago, it represents the smallest year-over-year increase and the slowest annual rate of growth since June 2021, suggesting the rental market may be cooling after the record-breaking pace of the last two years.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING OCTOBER 15:

  • New Listings decreased 14.0% to 1,266
  • Pending Sales decreased 37.3% to 835
  • Inventory increased 4.0% to 9,071

FOR THE MONTH OF SEPTEMBER:

  • Median Sales Price increased 6.3% to $362,050
  • Days on Market increased 39.1% to 32
  • Percent of Original List Price Received decreased 2.3% to 98.9%
  • Months Supply of Homes For Sale increased 18.8% to 1.9

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Rates push sales down further as home prices continue to grow

  • Buyer activity dropped 29.7 percent for pending sales and 23.9 percent for closings
  • Median sales price of Twin Cities homes rose 6.3 percent to $362,000
  • Sellers received 98.9 percent of their original list price, on average

(September 16, 2022) – According to new data from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, pending sales were down by over a quarter in September compared to last year. Sellers also accepted a smaller share of their asking price as their listings took longer to sell. Despite this, the homes that are selling are transacting at higher price points than last year.

Sales & Listings

Higher mortgage rates and historically strong demand in 2021 have pushed closed home sales down by double digits for four straight months. Last month had 3,969 signed purchase agreements, 29.6 percent short of 2021 levels and the lowest September figure since 2014. As the hyper-demand from the buying frenzy of the past two years wanes, those who remain in the market have regained some leverage.

“Our buyers can pause and breathe a bit— they no longer feel compelled to skip inspection or go way over list price,” according to Denise Mazone, President of Minneapolis Area REALTORS®. “But some sellers think they’re in the same position they were in a year ago, while some buyers think they’re going to get deals like it’s 2010. As usual, the truth is somewhere in the middle.”

Seller activity was down as many sellers remain apprehensive about also becoming buyers. Softening demand has meant homes linger on the market a bit longer—31 days on average or 34.8 percent longer than last September. Fewer homeowners are willing to relinquish their interest rates and list their homes. Sellers listed 6,002 properties on the market, 17.8 percent fewer than this time in 2021. Those that did list their homes tended to accept a smaller share of their asking price. But, they get to purchase in a less frenzied market.

Inventory & Home Prices

The median home price in the Twin Cities increased by 6.3 percent to $362,000. While still up, the growth is down from double-digit price gains seen in 2020 and 2021 and is the second smallest increase in two years. Although the rate of price growth is slowing, prices remain firm and resilient in the face of declining buyer activity. Housing supply levels remain tight, despite the recent market shifts. And, the softening in demand has been accompanied by a decline in new listings, so both sides have downshifted in tandem without creating the sort of asymmetry or imbalance that could abruptly shake up prices.

“Some might see a disconnect between lower demand and strong pricing right now.” said Mark Mason, President of the Saint Paul Area Association of REALTORS®. “While prices remain firm and resilient, the rebalancing we’ve seen means sellers shouldn’t expect dozens of offers at 10 percent or more above list price on the same day they list. Buyers may feel like they have a greater likelihood of success.”

September ended with 9,002 homes for sale, only 3 more units than last year. The momentum has been shifting back towards a more balanced marketplace (4-6 months of supply), but buyers should understand we are still in a seller’s market. Month’s supply of inventory rose 18.8 percent to 1.9 months.

Location & Property Type

Market activity varies by area, price point and property type. New home sales fell 0.2 percent while existing home sales were down 24.4 percent. Single family sales fell 22.1 percent, condo sales declined 19.8 percent and townhome sales were down 26.3 percent. Sales in Minneapolis decreased 14.7 percent while Saint Paul sales fell only 10.1 percent. Cities like Pine City, Corcoran, Rush City and Delano saw the largest sales gains while Clear Lake, Centerville, St. Anthony and River Falls all had lower demand than last year.

September 2022 Housing Takeaways (compared to a year ago)

  • Sellers listed 6,002 properties on the market, a 17.8 percent decrease from last September
  • Buyers signed 3,964 purchase agreements, down 29.7 percent (4,860 closed sales, down 23.9 percent)
  • Inventory levels were flat at 9,002 units
  • Month’s Supply of Inventory rose 18.8 percent to 1.9 months (4-6 months is balanced)
  • The Median Sales Price rose 6.3 percent to $362,000
  • Days on Market rose 34.8 percent to 31 days, on average (median of 19 days, up 58.3 percent)
  • Changes in Sales activity varied by market segment
    • Single family sales decreased 22.1 percent; Condo sales were down 19.8 percent & townhouse sales fell 26.3 percent
    • Traditional sales declined 23.1 percent; foreclosure sales rose 60.9 percent; short sales were up 50.0 percent (from 2 to 3)
    • Previously owned sales decreased 24.4 percent; new construction sales declined 0.2 percent


From The Skinny Blog.