“Buyer demand continues to be strong, especially given the supply constraints.”
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Weekly Market Report
For Week Ending February 1, 2020
A newly released report from the U.S. Census Bureau shows in Q4 2019 the national homeownership rate rose to 65.1%. This is the highest level since Q3 2013 when the homeownership rate was 65.3%. For perspective, the national homeownership rate since 2000 peaked at 69.1% in Q1 2005 and was at its lowest at 62.9% in Q2 2016. The increase in the homeownership rate since Q2 2016 represents nearly 2.7 million additional owner-occupied homes.
In the Twin Cities region, for the week ending February 1:
- New Listings increased 4.5% to 978
- Pending Sales increased 6.1% to 904
- Inventory decreased 15.5% to 7,621
For the month of December:
- Median Sales Price increased 7.9% to $278,200
- Days on Market decreased 1.8% to 56
- Percent of Original List Price Received increased 0.5% to 97.3%
- Months Supply of Homes For Sale decreased 15.8% to 1.6
All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Despite tight market Twin Cities real estate activity up in 2019
February 6, 2020
The Twin Cities housing market continued to show steady growth in 2019 according to the annual market wrap-up from the Minneapolis Area REALTORS® and the St. Paul Area Association of REALTORS®. At a joint news conference in St. Paul, the associations announced a growing economy, favorable rates and a persistent scarcity of homes for sale have uplifted home prices for eight consecutive years. Lower mortgage rates helped offset declining affordability brought on by rising home prices.
“In our market, like others across the country, lack of housing inventory has been a recurring theme for buyers. It continued in 2019 as buyers, looking for entry level options and more affordable choices, felt the most pressure. Buyers, however, have remained persistent resulting in gains, both in sales volume and price appreciation,” said Patrick Ruble, President of the Saint Paul Area Association of REALTORS®. “Fortunately, the region’s economy continues to grow, unemployment remains low and we are seeing growth in wages. We have a healthy market and look forward to some of the sticking points, such as the limited inventory, easing in the coming year.”
Sellers reversed three years of declines with a modest 0.2 percent increase in new listings in 2019. Buyers overturned a sales decline in 2018 with a 0.8 percent increase in purchases. The ongoing housing shortage has led to a competitive environment where multiple offers are commonplace, frustrating some consumers. Therefore, sellers are receiving strong offers in near record time. Market times did, however, increase 2.1 percent from 2018 while the ratio of sold to list price declined 0.1 percent. These two metrics could be early indicators of a shifting balance.
“Overall 2019 was a good year for real estate. After a slow start, activity picked up once rates fell back below 4.0 percent mid-year,” said Linda Rogers, President of the Minneapolis Area REALTORS®. “The second half of the year saw consistent sales gains, as record prices and declining affordability were offset by favorable rates and wage growth. Buyers were persistent despite tight inventory—particularly under $300,000. That’s no surprise, as the Twin Cities are a wonderful place to live, work and play.”
Rates remained attractive during the year. Despite starting the year around 4.5 percent, mortgage rates fell to 3.7 by year-end. Single family and new construction sales led the pack; so it’s no surprise that four-bedroom homes and homes over 2,500 square feet saw the largest gains. There’s still a “tale of two markets” dynamic at play: the under $350,000 or first-time buyer segment is severely undersupplied but also in high demand. The move-up market for homes over $500,000 is much better supplied, giving buyers more options and negotiating room.
“The Twin Cities housing market is a reflection of what’s been happening statewide,” said Bob Clark, President of the Minnesota Association of REALTORS®. “Realtors across Minnesota finished the year with slight increases in closings, new listings and continued growth in home prices.”
2019 by the Numbers
Sellers listed 76,345 properties on the market, a 0.2 percent increase from 2018
Buyers closed on 59,843 homes, a 0.8 percent increase from 2018
Inventory levels for December fell 19.6 percent compared to 2018 to 7,431 units
Months Supply of Inventory was down 21.2 percent o 1.5 months
The Median Sales Price rose 5.7 percent to $280,000, a record high
Cumulative Days on Market increased 2.1 percent to 49 days, on average (median of 23)
Changes in sales activity varied by market segment
Single-family sales increased 1.5 percent; condo sales fell 1.7 percent; townhome sales were down 1.4 percent
Traditional sales rose 1.8 percent; foreclosure sales decreased 31.9 percent; short sales fell 35.2 percent
Previously-owned sales increased 0.3 percent; new construction sales rose 6.9 percent
For other year-end residential real estate information and for stand-alone December 2019 data, visit www.mplsrealtor.com.
Weekly Market Report
For Week Ending January 25, 2020
CoreLogic’s latest Single-Family Rent Index report saw the cost of renting single-family homes, including condos, up 3% in November 2019 compared to November 2018. According to the report, rent prices started climbing in 2010 and have stabilized around an annualized rate of 3% since early 2019. With the cost of rent continuing to trend upward, it makes sense that many are considering paying their own mortgage, instead of their landlord’s, by becoming first-time homeowners.
In the Twin Cities region, for the week ending January 25:
- New Listings decreased 5.2% to 916
- Pending Sales decreased 0.9% to 795
- Inventory decreased 14.9% to 7,751
For the month of December:
- Median Sales Price increased 8.2% to $279,000
- Days on Market decreased 1.8% to 56
- Percent of Original List Price Received increased 0.5% to 97.3%
- Months Supply of Homes For Sale decreased 15.8% to 1.6
All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Weekly Market Report
For Week Ending January 18, 2020
The Mortgage Bankers Association reported that applications for home purchases rose 16% last week, reaching its highest level since 2009. Applications to refinance also grew, increasing a stunning 43% last week and are 109% higher than a year ago, the MBA reports. The sharp increases in both purchase and refinance applications are spurred by lower rates providing incentives for both buyers and existing homeowners to act.
In the Twin Cities region, for the week ending January 18:
- New Listings decreased 14.3% to 904
- Pending Sales increased 2.5% to 734
- Inventory decreased 14.3% to 7,770
For the month of December:
- Median Sales Price increased 8.2% to $279,000
- Days on Market decreased 1.8% to 56
- Percent of Original List Price Received increased 0.5% to 97.3%
- Months Supply of Homes For Sale decreased 21.1% to 1.5
All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Weekly Market Report
For Week Ending January 11, 2020
Freddie Mac reported that the average 30-year fixed-rate mortgage dropped to 3.64% this week, the lowest level in three months and down from 4.45% one year ago. Additionally, conforming and FHA loan limits have increased for 2020. Increased loan limits coupled with low rates, will give more buyers the ability to purchase a wider range of properties. These changes, along with the continued strong labor market, is likely to spur buyer demand even in the face of a constrained supply of homes for sale throughout much of the country.
In the Twin Cities region, for the week ending January 11:
- New Listings decreased 4.9% to 998
- Pending Sales decreased 12.2% to 592
- Inventory decreased 15.2% to 7,624
For the month of December:
- Median Sales Price increased 8.0% to $278,600
- Days on Market decreased 1.8% to 56
- Percent of Original List Price Received increased 0.4% to 97.2%
- Months Supply of Homes For Sale decreased 21.1% to 1.5
All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Weekly Market Report
For Week Ending January 4, 2020
With the start of the New Year, the real estate market turns more active across mostof the country. Sellers connect with agents, resulting in a pop of new listings, followed by renewed interest by buyers, which leads to an increase in pending sales. This pattern is seen every year and 2020 should be no different. We’re starting off the year with continued low interest rates, low unemployment, and rising rents nationally. This sets us up for a strong start to 2020 and plenty of optimism for the coming spring market.
In the Twin Cities region, for the week ending January 4:
- New Listings decreased 17.9% to 683
- Pending Sales decreased 7.0% to 546
- Inventory decreased 12.8% to 8,064
For the month of November:
- Median Sales Price increased 5.6% to $279,900
- Days on Market decreased 1.9% to 51
- Percent of Original List Price Received increased 0.2% to 97.5%
- Months Supply of Homes For Sale decreased 4.5% to 2.1
All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Weekly Market Report
For Week Ending December 28, 2019
Data from the Census Bureau’s Survey of Construction (SOC) and the National Association of Home Builders shows that 62.5 percent of all new construction homes started in 2018 were built as part of a community or homeowner’s association, up from 47.6% in 2009. These associations are typically created when the developments are built to maintain common areas of the developments and to enforce private deed restrictions, which often detail requirements for the exterior appearance and upkeep of properties.
In the Twin Cities region, for the week ending December 28:
- New Listings decreased 15.6% to 259
- Pending Sales decreased 3.7% to 495
- Inventory decreased 14.0% to 8,354
For the month of November:
- Median Sales Price increased 5.6% to $279,900
- Days on Market decreased 1.9% to 51
- Percent of Original List Price Received increased 0.2% to 97.5%
- Months Supply of Homes For Sale decreased 4.5% to 2.1
All comparisons are to 2018
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Weekly Market Report
For Week Ending December 21, 2019
As we close out the last weeks of the year, both buyers and sellers turn their focus from the transacting of homes to preparations for celebrating the holidays with their family and friends. Renewed interest by both buyers and sellers will come in the New Year and with it, the expectations for a strong housing market in 2020.
In the Twin Cities region, for the week ending December 21:
- New Listings increased 6.1% to 524
- Pending Sales decreased 1.3% to 706
- Inventory decreased 13.1% to 8,805
For the month of November:
- Median Sales Price increased 5.6% to $279,900
- Days on Market decreased 1.9% to 51
- Percent of Original List Price Received increased 0.2% to 97.5%
- Months Supply of Homes For Sale decreased 9.1% to 2.0
All comparisons are to 2018
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
November Monthly Skinny Video
Prices increased in year-over-year comparisons, and this will likely remain the case for the rest of the year.