Home prices rose steadily throughout 2018, even as sales activity was in fluctuation compared to 2017 levels.
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Weekly Market Report
For Week Ending January 12, 2019
The unemployment rate rose by 0.2 percent to finish December 2018 at 3.9 percent. Although the rate went up from the month prior, it was down by 1.2 percent compared to the same month last year. As the nation continues to wrestle with a partial government shutdown that has some people worried about the economy at large, it is important to note that the employment situation at large remains in a relatively strong position.
In the Twin Cities region, for the week ending January 12:
- New Listings increased 14.9% to 1,026
- Pending Sales increased 6.9% to 650
- Inventory increased 2.8% to 7,969
For the month of December:
- Median Sales Price increased 4.0% to $258,000
- Days on Market decreased 6.6% to 57
- Percent of Original List Price Received decreased 0.2% to 96.9%
- Months Supply of Inventory increased 13.3% to 1.7
All comparisons are to 2018
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Weekly Market Report
For Week Ending January 5, 2019
The turn of a calendar year often creates a desire to resolve to do something different. Weight loss through a combination of regular exercise and healthy eating is often at the top of the list, followed by learning a new skill, quitting smoking, reading more, spending more time with loved ones, getting more organized, traveling and saving money. Annual evidence indicates that a bump in listing and buying activity also occurs each January, which appears to be the case again in 2019 for much of the country.
In the Twin Cities region, for the week ending January 5:
- New Listings decreased 4.9% to 809
- Pending Sales increased 0.7% to 553
- Inventory increased 6.0% to 8,209
For the month of November:
- Median Sales Price increased 8.2% to $265,000
- Days on Market decreased 7.1% to 52
- Percent of Original List Price Received decreased 0.1% to 97.3%
- Months Supply of Inventory increased 10.5% to 2.1
All comparisons are to 2018
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Weekly Market Report
For Week Ending December 29, 2018
Although the 2018 U.S. stock market had its worst losses in a decade, employers added 2.64 million jobs in 2018 – the best year since 2015 – as well as 312,000 jobs during December. In addition, average hourly earnings increased 3.2 percent, matching the October 2018 percentage that marked a nearly ten-year high. The unemployment rate rose to 3.9 percent from 3.7 percent but is still historically low. These combined events give the impression of an economy that remains ultimately optimistic but is also recalibrating.
In the Twin Cities region, for the week ending December 29:
- New Listings increased 22.2% to 297
- Pending Sales increased 11.5% to 514
- Inventory increased 0.2% to 8,608
For the month of November:
- Median Sales Price increased 8.2% to $265,000
- Days on Market decreased 7.1% to 52
- Percent of Original List Price Received decreased 0.1% to 97.3%
- Months Supply of Inventory increased 10.5% to 2.1
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Weekly Market Report
For Week Ending December 22, 2018
The last few weeks of the year provide an opportunity for buyers, sellers and real estate practitioners alike to spend time with the family and friends that make owning a home that much more special. It also provides a time to plan for the potential for marginal increases in average household wages, median sales prices for homes, mortgage rates and total available homes for sale in 2019.
In the Twin Cities region, for the week ending December 22:
- New Listings increased 11.1% to 469
- Pending Sales decreased 7.4% to 680
- Inventory increased at 9,053
For the month of November:
- Median Sales Price increased 8.2% to $265,000
- Days on Market decreased 7.1% to 52
- Percent of Original List Price Received decreased 0.1% to 97.3%
- Months Supply of Inventory increased 10.5% to 2.1
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
November Monthly Skinny Video
“Housing is still relatively affordable.”
www.mplsrealtor.com
Weekly Market Report
For Week Ending December 15, 2018
The U.S. Federal Reserve recently raised the benchmark borrowing rate to a range of 2.25 to 2.50 percent. It is the fourth increase in 2018 and brings the rate to its highest level in a decade. As a result, borrowing money will be more expensive, particularly for credit card purchases. Fed Chair Jerome Powell stated that a rate increase at this time was appropriate for a healthy economy. Fed actions do not necessarily affect mortgage rates, but they can be influential.
In the Twin Cities region, for the week ending December 15:
- New Listings increased 9.5% to 702
- Pending Sales decreased 6.7% to 723
- Inventory increased 1.0% to 9,487
For the month of November:
- Median Sales Price increased 8.2% to $265,000
- Days on Market decreased 7.1% to 52
- Percent of Original List Price Received decreased 0.1% to 97.3%
- Months Supply of Inventory increased 10.5% to 2.1
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Long-awaited inventory gains finally arrive
By David Arbit on Tuesday, December 18th, 2018
For the first time since April 2015, there were more homes listed for sale in the Twin Cities metro than the same month the year prior. After years of strong buyer activity and weak seller activity, the tides seem to finally be shifting. Seller activity has been accelerating since the middle of this year. Meanwhile, the last four months all showed year-over-year decreases in pending sales. Unit sales volumes are still healthy, though there is some downward pressure brought on by tight inventory and rising prices and rates. The market is decelerating, but not yet contracting. Prices continue to rise, and homes are selling in less time. But absorption rates and the ratio of sold to list price are starting to ease. That’s good news for buyers, even though sellers still have strong negotiating power.
The number of active listings for sale has increased compared to the prior year. Buyers haven’t seen inventory gains in over 3.5 years. Months supply also ticked up to 2.1 months, suggesting the market is still tight but it is rebalancing and normalizing. After increasing in October and November, rates have settled back down around September levels. The lack of supply is especially noticeable at the entry-level prices, where multiple offers and homes selling for over list price are commonplace. The move-up and upper-bracket segments are less competitive and—for the most part—much better supplied. Inventory could double while sales remain stable and we’d still have less than 5 months of supply.
November 2018 by the Numbers (compared to a year ago)
Sellers listed 3,992 properties on the market, a 12.6 percent increase from last November
Buyers closed on 4,629 homes, a 0.9 percent decrease
Inventory levels for November rose 2.3 percent compared to 2017 to 10,181 units
Months Supply of Inventory was increased 10.5 percent to 2.1 months
The Median Sales Price rose 8.2 percent to $265,150, a record high for November
Cumulative Days on Market declined 7.1 percent to 52 days, on average (median of 31)
Changes in Sales activity varied by market segment:
Single family sales fell 1.1 percent; condo sales jumped 18.7 percent; townhome sales declined 3.3 percent
Traditional sales rose 1.3 percent; foreclosure sales sank 44.1 percent; short sales fell 42.9 percent
Previously-owned sales were down 3.2 percent; new construction sales ramped up by 28.7 percent
From The Skinny Blog.
Weekly Market Report
For Week Ending December 8, 2018
The month of December often equates to a full-scale slowdown in residential real estate, as thoughts shift from buying homes to buying gifts and plane tickets to visit family and friends. This year could be different. The Federal Reserve is set to raise interest rates one more time in 2018. Interest rate hikes don’t necessarily create mortgage rate hikes, but they can. This may cause more purchase offers ahead of deeper affordability concerns in 2019.
In the Twin Cities region, for the week ending December 8:
- New Listings increased 1.4% to 773
- Pending Sales decreased 8.3% to 716
- Inventory increased 2.1% to 9,994
For the month of November:
- Median Sales Price increased 8.2% to $265,000
- Days on Market decreased 7.1% to 52
- Percent of Original List Price Received decreased 0.1% to 97.3%
- Months Supply of Inventory increased 5.0% to 2.1
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Weekly Market Report
For Week Ending December 1, 2018
While recent stock market activity has displayed some heart-pounding drops and rallying rises, that volatility has not created the same tidal waves within residential real estate. Increasing home prices and mortgage rates have indeed created a sense of immediacy for some buyers and turned others away due to affordability concerns, but these decisions appear to be rooted in longer-term trends rather than the effects of a media headline or presidential tweet.
In the Twin Cities region, for the week ending December 1:
- New Listings increased 7.0% to 877
- Pending Sales decreased 9.0% to 904
- Inventory increased 1.5% to 10,437
For the month of October:
- Median Sales Price increased 8.6% to $265,000
- Days on Market decreased 7.7% to 48
- Percent of Original List Price Received increased 0.2% to 97.9%
- Months Supply of Inventory remained flat at 2.4
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.