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.
Monthly Archives: February 2015
Weekly Market Report
For Week Ending February 14, 2015
As we hit February, mortgage rates continue to remain low, bringing about a high dosage of optimism to the market. While some reports attempt to dissect drops in builder confidence with a negative-bent attitude, low rates seem prepped to steer potential buyers toward getting their own set of house keys, curbing the pessimism of market naysayers.
In the Twin Cities region, for the week ending February 14:
- New Listings increased 12.1% to 1,298
- Pending Sales increased 15.6% to 920
- Inventory decreased 3.7% to 12,410
For the month of January:
- Median Sales Price increased 8.5% to $195,000
- Days on Market increased 7.5% to 100
- Percent of Original List Price Received increased 0.2% to 93.7%
- Months Supply of Inventory remained flat at 2.9
All comparisons are to 2014
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Weekly Market Report
For Week Ending February 7, 2015
Nationally, housing starts are off to a good start in 2015, with new projects ahead of last year at this time. Before the confetti cannons come out, this doesn’t necessarily mean that sellers can start asking more and that buyers will immediately have more to choose from. But this does bode well for increased confidence throughout the residential real estate marketplace. Balance means a lighter ebb and flow of various market metrics rather than astronomical gains and losses. This is positive.
In the Twin Cities region, for the week ending February 7:
- New Listings increased 25.4% to 1,496
- Pending Sales increased 14.3% to 881
- Inventory decreased 5.1% to 12,104
For the month of January:
- Median Sales Price increased 8.5% to $195,000
- Days on Market increased 8.6% to 101
- Percent of Original List Price Received increased 0.2% to 93.7%
- Months Supply of Inventory remained flat at 2.9
All comparisons are to 2014
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Strong Start to Year Sets Tone for 2015
By Aubray Erhardt on Thursday, February 12th, 2015
The Twin Cities regional housing market started 2015 on an enthusiastic but not overly dramatic note. Both seller activity and pending buyer activity increased relative to January 2014. Sellers introduced 4,497 new listings to the marketplace, 5.9 percent more than last year. Buyers entered into 2,986 purchase agreements, 7.8 percent higher than the pending sales count at this time last year. Inventory levels were lower, down 6.3 percent to 11,926 homes currently on the market. Many in the industry are expecting more inventory as we approach the spring market—both in a month-to-month sense as well as year-over-year.
The median sales price rose 8.5 percent to $195,000, the strongest gain since last February. This increase marks 35 consecutive months of year-over-year median price gains. Price per square foot—perhaps a more telling figure—rose 6.6 percent to $118. Absorption rates were dead-even with last January. Months supply of inventory was flat at 2.9 and still suggests the arc of the market is bending toward sellers. That said, today’s landscape is slightly less competitive than in past months. Partly as a result, days on market until sale rose 7.5 percent to 100 days.
Digging deeper, the trend of less foreclosure and short sale activity continued. Traditional pending sales rose a significant 21.9 percent, while foreclosure and short sale pending sales each fell about 25 percent. That changing mix of product has helped catalyze the nearly three straight years of price gains seen in the region.
“Both buyers and sellers appear confident and energized and the traditional segment enjoyed a strong start to the year,” said Mike Hoffman, President of the Minneapolis Area Association of REALTORS® (MAAR). “The steady, ongoing improvement and normalization we saw in January could be indicative of the year as a whole but only time will tell.”
Surprisingly, interest rates have again sunk below the 4.0 percent mark. Historically and persistently low mortgage rates tend to spur purchase demand. This highly attractive financing environment can potentially offset home price increases and also encourages renters to consider homeownership. The Twin Cities housing affordability index of 206 remained stable. This means that the median household income was 106 percent higher than the necessary income needed to qualify for the median-priced home under current interest rates.
Another factor motivating home buyers is the dramatically improving jobs scene—both locally and nationally. In December, the Bureau of Labor Statistics reported that the Twin Cities again had the lowest unemployment rate of any major metro in the nation at 3.3 percent. At 5.6 percent, the national rate is the lowest it’s been since June 2008. Private job creation is accelerating and figures from past months have been revised upward.
“Consumers seem excited about the upcoming spring market,” said Judy Shields, MAAR President-Elect. “Weather permitting, we’re expecting a strong turnout for both buyers and sellers. It should be an exciting year!”
Weekly Market Report
The U.S. economy continues on its journey upward. Not only have gas prices hit multi-year lows, but wages have experienced gains not seen since 2008. As the year picks up steam, and whether you hang out with the bears or bulls of market recovery prognostication (not Chicago sports teams), one cannot deny that the economy is in a more stable position than it has been in years.
In the Twin Cities region, for the week ending January 31:
- New Listings increased 8.5% to 1,012
- Pending Sales increased 16.0% to 886
- Inventory decreased 5.6% to 12,202
For the month of January:
- Median Sales Price increased 8.5% to $195,000
- Days on Market increased 7.5% to 100
- Percent of Original List Price Received increased 0.2% to 93.7%
- Months Supply of Inventory remained flat at 2.9
All comparisons are to 2014
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Weekly Market Report
Up, down and all around, mortgage rates and regulations will likely be hot topics this year. Rates should stay low through 2015, but consumers and finance experts believe we’re at or near rate bottoms. The implication of low rates should be that more people will be able to reach homeownership status in the coming year, but it will be interesting to see if regulatory standards loosen up or tighten further based on buyer demand.
In the Twin Cities region, for the week ending January 24:
- New Listings increased 15.8% to 1,058
- Pending Sales increased 3.1% to 675
- Inventory decreased 6.4% to 12,149
For the month of December:
- Median Sales Price increased 5.2% to $200,000
- Days on Market increased 3.5% to 89
- Percent of Original List Price Received decreased 0.6% to 94.1%
- Months Supply of Inventory increased 3.4% to 3.0
All comparisons are to 2014
Click here for the full Weekly Market Activity Report. From The Skinny Blog.