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. Video produced by Chelsie Lopez.
Monthly Archives: June 2013
Weekly Market Report
Sellers are finally starting to catch up with strong buyer demand, but at the rate that homes are being snatched up, the influx of new listings will need to be more than a short-term addition. Rising home prices, fewer days on market and more homes being sold all support a positive public opinion about real estate. The following local stats should shed invaluable quantitative support for that warm fuzzy feeling residential real estate is handing out.
In the Twin Cities region, for the week ending June 8:
- New Listings increased 23.2% to 1,951
- Pending Sales increased 12.0% to 1,329
- Inventory decreased 21.7% to 14,569
For the month of May:
- Median Sales Price increased 14.8% to $194,000
- Days on Market decreased 29.8% to 87
- Percent of Original List Price Received increased 2.5% to 97.0%
- Months Supply of Inventory decreased 30.6% to 3.4
Click here for the full Weekly Market Activity Report.From The Skinny.
Pending Sales Levels Highest Since June 2005
Minneapolis, Minnesota (June 12, 2013) – May was an impressive month for the 13-county Twin Cities residential real estate market. With 5,872 pending sales, buyer demand continued its ascent, surging 18.5 percent to its highest level since June 2005. Seller activity was also up, as new listings rose 26.2 percent to 8,332 units, representing the largest gain in new listings since January 2006 and the highest number since April 2010. Buyers have 14,375 properties to choose from – 22.3 percent fewer than in May 2012 but 11.6 percent more than in January 2013.
The median sales price for the metro area rose 15.1 percent to $194,450. That’s the highest median sales price since August 2008. A shift in product type is driving this improvement. As recently as February 2011, foreclosures and short sales occupied 61.5% of all sales activity. In May 2013, these two distressed segments together comprised just 26.9 percent of all sales. The percentage of all new listings that were distressed in May 2013 fell to 18.6 percent, its lowest level since September 2007.
“With the recent disparity between massive buyer demand and sluggish seller supply, it is encouraging to see a substantial increase in traditional listings,” said Andy Fazendin, President of the Minneapolis Area Association of REALTORS® (MAAR).
Although new listings were up 26.2 percent overall, traditional new listings were up 49.9 percent, while foreclosure new listings were down 15.4 percent and short sale new listings were down 43.4 percent. With 15 straight months of year-over-year price gains, multiple-offer situations and just 3.4 months’ supply of inventory, the market landscape that once favored buyers has tilted toward sellers.
The traditional median sales price was up 7.3 percent to $220,000; the foreclosure median sales price was up 18.7 percent to $137,700; the short sale median sales price was up 4.4 percent to $141,000. On average, traditional homes sold in 78 days, foreclosures sold in 87 days and short sales lagged at 174 days.
“This is still about product mix. We once filled our grocery bag with ramen noodles,” said Emily Green, MAAR President-Elect. “Today we’re buying organic, grass-fed sirloin steaks. Grocery prices haven’t increased much, but
the value of what we’re buying has. Traditional homes tend to be of a higher quality and better maintained than foreclosures or short sales.”
Weekly Market Report
Interest rates are on the rise, but further increases should be incremental and gradual without harming housing demand. All the same, some buyers might feel an extra pinch to act soon if economic and jobs data continues on a path of improvement. Ultra-low rates will not remain the rule of the day if the economy gives the Fed no reason to maintain its quantitative easing (money printing) stimulus policies.
In the Twin Cities region, for the week ending June 1:
- New Listings increased 23.6% to 1,713
- Pending Sales increased 22.8% to 1,180
- Inventory decreased 23.1% to 14,349
For the month of May:
- Median Sales Price increased 15.1% to $194,450
- Days on Market decreased 29.8% to 87
- Percent of Original List Price Received increased 2.5% to 97.0%
- Months Supply of Inventory decreased 30.6% to 3.4
Click here for the full Weekly Market Activity Report.From The Skinny.
Weekly Market Report
Although buyers are still in the market for higher inventory levels, sellers remain happy with their multiple-offer situations and short days on the market. As the product mix shifts away from distressed properties and towards traditional sellers, the U.S. housing market finds itself in a place it hasn’t been in a while – healthfully competitive. Pocket listings and shadow inventory provide something for the media to talk about, but for now, the market seems strong enough to hold up to any casual cannon fodder aimed its way.
In the Twin Cities region, for the week ending May 25:
- New Listings increased 29.8% to 1,799
- Pending Sales increased 18.8% to 1,382
- Inventory decreased 24.6% to 14,169
For the month of April:
- Median Sales Price increased 12.0% to $182,000
- Days on Market decreased 28.1% to 97
- Percent of Original List Price Received increased 2.8% to 96.0%
- Months Supply of Inventory decreased 36.0% to 3.2
Click here for the full Weekly Market Activity Report.From The Skinny.