Monthly Archives: January 2017

Weekly Market Report

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For Week Ending January 21, 2017

The number of existing homes sold in 2016 was 5.4 million, which exceeded the 5.25 million sold in the previous year and is now the highest in a decade. Declining inventory and affordability are both going to be closely surveyed this year, as a continuation of those trends could negatively impact sales. For now, prices are still running higher and days on market are still lower, both indicative of healthy demand.

In the Twin Cities region, for the week ending January 21:

  • New Listings increased 12.8% to 1,025
  • Pending Sales increased 4.0% to 730
  • Inventory decreased 25.3% to 8,379

For the month of December:

  • Median Sales Price increased 3.9% to $228,000
  • Days on Market decreased 10.1% to 71
  • Percent of Original List Price Received increased 0.6% to 96.0%
  • Months Supply of Inventory decreased 26.1% to 1.7

All comparisons are to 2016

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

Weekly Market Report

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For Week Ending January 14, 2017

In winter, it is not uncommon for housing starts to tail off, but 2016 closed on an uptick and became the best year for housing starts since 2007. Granted, multifamily homes have been driving the increase in recent years, while single-family starts and building permits are mildly down. Yet there is warranted optimism for new single- family home building in 2017.

In the Twin Cities region, for the week ending January 14:

  • New Listings decreased 4.8% to 931
  • Pending Sales decreased 7.0% to 622
  • Inventory decreased 25.6% to 8,347

For the month of December:

  • Median Sales Price increased 4.1% to $228,500
  • Days on Market decreased 10.1% to 71
  • Percent of Original List Price Received increased 0.6% to 96.0%
  • Months Supply of Inventory decreased 26.1% to 1.7

All comparisons are to 2016

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

2016 Annual Wrap-Up: Home Prices Reach Record High and Home Sales Reach 11-year High

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By Erin Milburn on Tuesday, January 17th, 2017

The big story of 2016 was twofold: the median sales price reached an all-time high; while closed sales reached an 11-year high. Closed sales nearly broke their all-time record, but fell 0.3 percent short of their all-time 2004 high. Seller activity declined 1.1 percent. Near-record sales activity combined with flat-to-weaker seller activity created a supply shortage. Active housing supply levels fell to a 14-year low. This shortage has created a competitive environment where multiple offers have become more common. Sellers are receiving strong offers in record time, but this fast-paced market can frustrate some consumers. Days on market fell to a 10-year low. Absorption rates fell to 1.6 months of supply at year-end, a record low. Foreclosure activity fell for a fifth straight year and is back below 2007 levels. Although single-family homes made up about 75.0 percent of all sales, both townhomes and condos showed a stronger increase in sales. Similarly, previously-owned homes made up about 93.0 percent of sales but new construction showed a much stronger increase.

2016 by the Numbers

Sellers listed 76,531 properties on the market, a 1.1 percent decrease from 2015
Buyers closed on 59,988 homes, a 6.2 percent increase from 2015 and the highest figure since 2005
Inventory levels for December fell 26.3 percent to 8,197 units compared to 11,125 in 2015—a 14-year low
Months Supply of Inventory was down 30.4 percent to 1.6 months, also a 14-year low
The Median Sales Price rose 5.5 percent to $232,000, which is an all-time record high
Cumulative Days on Market declined 15.8 percent to 64 days, on average (median of 33)—a 10-year record low
Changes in sales activity varied dramatically by market segment

  • Single-family sales rose 5.1 percent; condo sales rose 9.5 percent; townhome sales rose 9.9 percent
  • Traditional sales rose 10.0 percent; foreclosure sales fell 25.0 percent; short sales fell 31.1 percent
  • Previously-owned sales rose 5.7 percent; new construction sales rose 14.9 percent

Poignant Quotables

“The most important achievement of 2016 was erasing the losses in prices and equity caused by the downturn. As sales surpassed their 10-year high, Twin Citizens demonstrated that they are just as committed to homeownership as ever. There are some manageable challenges, but a favorable affordability picture, attractive rates, job growth and wage growth will continue to sustain a healthy real estate market,” said Cotty Lowry, President of the Minneapolis Area Association of REALTORS®.

“We reached some key milestones last year, and hope to continue with this momentum in 2017. It is a great time for those considering listing their home, as buyers are looking for more options. With median sales price at an all-time high, now is a great time to find out the current value of your home,” said Tina Angell, President of the St. Paul Area Association of REALTORS®.
From The Skinny Blog.

Weekly Market Report

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For Week Ending January 7, 2017

If predictions hold true – a continuing inventory crunch, moderate price gains, higher mortgage rates – 2017 will likely be in favor of the seller. On the other end of the spectrum, deals may be harder to come by if the largest potential group of buyers, the millennials, do not start wading into the buying pool with more fervor.

In the Twin Cities region, for the week ending January 7:

  • New Listings decreased 15.1% to 969
  • Pending Sales decreased 21.1% to 555
  • Inventory decreased 25.5% to 8,298

For the month of December:

  • Median Sales Price increased 4.1% to $228,500
  • Days on Market decreased 10.1% to 71
  • Percent of Original List Price Received increased 0.6% to 96.0%
  • Months Supply of Inventory decreased 26.1% to 1.7

All comparisons are to 2016

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

Weekly Market Report

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For Week Ending December 31, 2016

At the outset of 2017, we are watching for upward movement in some of the same areas that we were watching in 2016. Inventory remains a key metric, as continued decreases may push out potential buyers, especially if mortgage rates continue to increase. However, buying a home is still considered more affordable than renting in two-thirds of the country according to the 2017 Rental Affordability Report by ATTOM Data Solutions.

In the Twin Cities region, for the week ending December 31:

  • New Listings decreased 7.5% to 384
  • Pending Sales decreased 14.9% to 474
  • Inventory decreased 24.9% to 9,049

For the month of December:

  • Median Sales Price increased 4.1% to $228,500
  • Days on Market decreased 10.1% to 71
  • Percent of Original List Price Received increased 0.6% to 96.0%
  • Months Supply of Inventory decreased 30.4% to 1.6

All comparisons are to 2015

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

Weekly Market Report

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For Week Ending December 24, 2016

As we look toward 2017, the entirety of the U.S. housing market has never been worth as much as it is right now. Housing stock value grew to $29.6 trillion in 2016, regaining all of the value that was lost during the last recession. An upward trend in mortgage rates, mortgage credit and new construction are all common predictions for 2017.

In the Twin Cities region, for the week ending December 24:

  • New Listings increased 32.5% to 359
  • Pending Sales increased 28.1% to 606
  • Inventory decreased 23.9% to 9,469

For the month of November:

  • Median Sales Price increased 5.5% to $231,400
  • Days on Market decreased 15.1% to 62
  • Percent of Original List Price Received increased 0.8% to 96.7%
  • Months Supply of Inventory decreased 24.1% to 2.2

All comparisons are to 2015

Click here for the full Weekly Market Activity Report. From The Skinny Blog.