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 David Arbit, Research Manager at the Minneapolis Area Association of REALTORS®, video produced by Chelsie Lopez.
Monthly Archives: October 2014
Weekly Market Report
Rising home prices and continued housing stability continue to lure new listings
and keep inventory at a comfortable level. Although things like student debt and
lethargic wage growth may provide some obstacles for first-time home buyers,
those on the hunt for homes are still graced by relatively low inflation and low
mortgage rates. The seasonal slows may settle in soon, but the market remains
mostly content.
In the Twin Cities region, for the week ending October 18:
- New Listings increased 1.6% to 1,310
- Pending Sales increased 5.1% to 912
- Inventory increased 6.1% to 18,094
For the month of September:
- Median Sales Price increased 5.1% to $204,999
- Days on Market remained flat at 71
- Percent of Original List Price Received decreased 0.9% to 95.6%
- Months Supply of Inventory increased 18.4% to 4.5
All comparisons are to 2013
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Weekly Market Report
As we turn toward the final and typically quietest quarter of the year, it is easy to wonder if we are destined to lose the stability that we have worked hard for throughout the U.S. However, gloomy considerations are readily put aside after considering a recent investigation by the International Monetary Fund into the real estate markets of other countries. It turns out that our national housing price-to- income ratio is fairly conservative. At this rate, we will soon stop talking about the process of housing recovery and just call it recovered.
In the Twin Cities region, for the week ending October 11:
- New Listings decreased 6.6% to 1,423
- Pending Sales increased 6.8% to 955
- Inventory increased 7.5% to 18,178
For the month of September:
- Median Sales Price increased 5.1% to $205,000
- Days on Market remained flat at 71
- Percent of Original List Price Received decreased 0.9% to 95.6%
- Months Supply of Inventory increased 15.8% to 4.4
All comparisons are to 2013
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Weekly Market Report
Every story needs a hero, and housing’s current starlet is (drum roll, please) inventory. More markets continue to see increases in homes for sale, giving buyers more options and keeping prices from trying to overshadow the popularity of inventory with unsustainable stardom. As autumnal extracurriculars pick up and department store decorations trend towards the mustard palate, sales may drop off some, but the subplots of normalization and stabilization should remain popular with year-over-year inventory increases in the leading role.
In the Twin Cities region, for the week ending October 4:
- New Listings decreased 3.8% to 1,477
- Pending Sales increased 1.7% to 1,063
- Inventory increased 10.9% to 18,696
For the month of September:
- Median Sales Price increased 5.1% to $205,000
- Days on Market remained flat at 71
- Percent of Original List Price Received decreased 0.9% to 95.6%
- Months Supply of Inventory increased 15.8% to 4.4
All comparisons are to 2013
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Price Gains Normalizing as Traditional Sellers Replenish Inventory
For the month of September 2014, inventory in the 13-county Minneapolis–St. Paul metropolitan area rose 8.2 percent from last year, and it was the seventh month in a row of year-over-year inventory gains. Consumers now have 18,250 homes from which to choose. Sellers were more motivated to sell this year, as evidenced by new listing activity increasing 7.2 percent to 6,832. Top-line pending sales decreased a slight 1.3 percent to 4,155, indicative of there being less foreclosure activity entering the market than anything else.
With 4.4 months’ supply of inventory, the absorption rate is consistent with a market transitioning back toward balanced territory, where neither buyers nor sellers have a clear edge. The sales mix continued to skew toward traditional homes that sell in less time and at higher price points. The median sales price rose 5.1 percent to $205,000. That now marks 31 consecutive months of year-over-year price gains.
Prices are driven by several factors such as supply and demand but also changes in the sales mix. Looking more deeply at the numbers, a story emerges. While new listings rose 7.2 percent overall, traditional new listings were up 17.9 percent while foreclosure and short sale new listings fell 42.2 and 42.5 percent, respectively. Similarly, overall pending sales were down 1.3 percent, but traditional pending sales rose 9.2 percent while foreclosure and short sale pendings fell 37.0 and 43.3 percent. Market-wide inventory levels increased 8.2 percent, but traditional inventory was up 23.2 percent while foreclosure and short sale inventory levels fell 38.2 and 47.1 percent.
Despite nearly three straight years of rising prices, the Twin Cities housing affordability index has remained relatively stable. The current reading of 186 indicates that the median household income was 86 percent greater than what’s necessary to qualify for the median-priced home under current interest rates. While the index is below its 2012 peak, it remains above its long-term average.
Buyers have more homes from which to choose than they had at any point in 2013 and half of 2012. A growing share of that inventory falls into the traditional segment. Days on market was perfectly even with last year at 71 days. The median list price rose 6.7 percent to $239,900. Price per square foot rose 4.7 percent to $121.
According to the Bureau of Labor Statistics, the Twin Cities currently has the lowest unemployment rate among major metros in the nation at 3.8 percent. The national rate dropped below 6.0 percent for the first time since 2008.
Weekly Market Report
With the exciting sales pace of summer behind us, and focus now shifting inward toward family, school and other interests for many Americans, the numbers will start to dip in most markets. Seasonal shifts can be a drag, but it can also mean opportunity. Bargain hunters, first-time buyers, empty nesters, investors and younger buyers with no school-aged children are among the crowd that are not necessarily framed by the summer months. New construction is inching upwards, and the national unemployment rate dropped below 6.0 to 5.9 for the first time since 2008, so there’s still plenty of rosy attitude in a balanced market.
In the Twin Cities region, for the week ending September 27:
- New Listings decreased 1.3% to 1,431
- Pending Sales decreased 14.5% to 945
- Inventory increased 10.0% to 18,753
For the month of August:
- Median Sales Price increased 5.3% to $219,000
- Days on Market decreased 2.9% to 68
- Percent of Original List Price Received decreased 0.7% to 96.3%
- Months Supply of Inventory increased 18.4% to 4.5
All comparisons are to 2013
Click here for the full Weekly Market Activity Report. From The Skinny Blog.