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Weekly Market Report
For Week Ending May 19, 2018
According to the National Association of REALTORS®, existing home sales were down 2.5 percent for the nation as a whole in April. While local trends do not necessarily coincide with national trends, a holistic outlook can often explain the general state of feelings regarding residential real estate. Sales have been lower in year-over-year comparisons in the hottest submarkets due to low inventory and a speed to sale that is faster than the market can replenish itself.
In the Twin Cities region, for the week ending May 19:
- New Listings increased 8.9% to 2,279
- Pending Sales decreased 10.2% to 1,437
- Inventory decreased 22.6% to 9,768
For the month of April:
- Median Sales Price increased 9.0% to $267,000
- Days on Market decreased 10.2% to 53
- Percent of Original List Price Received increased 0.8% to 99.9%
- Months Supply of Inventory decreased 20.8% to 1.9
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Slightly less activity yet higher prices in less time
By David Arbit on Tuesday, May 22nd, 2018
Housing demand is strong and supply is low. That’s been the story for a few years. But there is some early evidence that things could be starting to loosen up. That said, buyers shopping this spring will still face stiff competition. The lack of inventory combined with rising prices is encouraging some sellers to stay put; however, the move up market offers a bit more inventory. This combined with historically low interest rates creates a perfect opportunity for homeowners looking to move up.
In April, sellers listed 7.2 percent fewer homes on the market—the sixth consecutive month of declines compared to a year ago. Largely due to the shortage, closed sales declined 5.2 percent compared to the prior year. For-sale housing inventory was 25.1 percent lower than April 2017. This shortage, which is particularly acute at the entry-level prices, has created a competitive environment where multiple offers and homes selling for over list price have become more common. Sellers are often receiving strong offers close to their original list price quickly, which can sometimes frustrate home buyers.
New construction closed sales rose 13.2 percent compared to last April. Although single family homes made up about 73.0 percent of all sales, townhomes and condos have seen stronger demand lately. Similarly, previously-owned homes made up about 90.0 percent of sales, but new construction showed a much stronger increase in pending and closed purchase activity. The average time on market is still 53 days, reminding sellers that they still need to stage and price their homes well.
April 2018 by the Numbers (compared to a year ago)
• Sellers listed 7,321 properties on the market, a 7.2 percent decrease
• Buyers closed on 4,635 homes, a 5.2 percent decrease
• Inventory levels for April fell 25.1 percent compared to 2017 to 8,958 units
• Months Supply of Inventory was down 25.0 percent to 1.8 months
• The Median Sales Price rose 8.6 percent to $266,000, a record high for April
• Cumulative Days on Market declined 10.2 percent to 53 days, on average (median of 18)
• Changes in Sales activity varied by market segment
Single family sales declined 6.4 percent; condo sales rose 3.0 percent; townhome sales rose 1.0 percent
Traditional sales fell 2.8 percent; foreclosure sales decreased 43.3 percent; short sales fell 20.0 percent
Previously-owned sales fell 5.6 percent; new construction sales rose 13.2 percent
Weekly Market Report
For Week Ending May 12, 2018
Inventory and days on market both continue to skim along at historic lows, while buyer demand is creating competitive purchase offer situations that are increasing the number of homes sold for more than the asking price. This practice is nothing new in more popular areas, but higher offers are becoming normal outside of the hottest cities and neighborhoods. Affordability is a challenge for some potential buyers, yet prices still rise in an environment of economic confidence.
In the Twin Cities region, for the week ending May 12:
- New Listings decreased at 2,073
- Pending Sales decreased 5.5% to 1,466
- Inventory decreased 23.9% to 9,446
For the month of April:
- Median Sales Price increased 8.9% to $266,750
- Days on Market decreased 10.2% to 53
- Percent of Original List Price Received increased 0.7% to 99.8%
- Months Supply of Inventory decreased 20.8% to 1.9
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Weekly Market Report
For Week Ending May 5, 2018
Year-over-year percentage changes for housing metrics like inventory, median sales price and days on market have sometimes looked dramatic over the past few years in most markets across the country not named Houston. But as faster sales and higher prices persist, another trend is beginning to emerge: reliability. Although more market balance is preferred, the current situation has proven to be surprisingly sustainable, at least for the time being.
In the Twin Cities region, for the week ending May 5:
- New Listings decreased 13.9% to 2,054
- Pending Sales decreased 10.0% to 1,456
- Inventory decreased 23.2% to 9,155
For the month of March:
- Median Sales Price increased 9.8% to $258,050
- Days on Market decreased 21.9% to 57
- Percent of Original List Price Received increased 1.1% to 99.1%
- Months Supply of Inventory decreased 22.7% to 1.7
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Weekly Market Report
For Week Ending April 28, 2018
As with last spring, the home-purchasing season will be competitive this year. Demand is still strong, especially in light of rising mortgage rates. Savvy consumers will want to get into a home before rates go up again. Amidst an environment of low inventory, buyers need to remain watchful of new listings and make their offers quickly.
In the Twin Cities region, for the week ending April 28:
- New Listings decreased 7.2% to 1,761
- Pending Sales decreased 9.5% to 1,389
- Inventory decreased 23.5% to 9,051
For the month of March:
- Median Sales Price increased 9.8% to $258,000
- Days on Market decreased 21.9% to 57
- Percent of Original List Price Received increased 1.1% to 99.1%
- Months Supply of Inventory decreased 22.7% to 1.7
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Weekly Market Report
For Week Ending April 21, 2018
After at least two years of hearing reports that both sellers and builders are gaining in confidence due to an expected positive return on investment, we are starting to see some upward movement in the New Listings metric locally and throughout the nation. Although there may not necessarily be positives from week to week, a longer-term improvement trend would not be a surprise at this point.
In the Twin Cities region, for the week ending April 21:
- New Listings decreased 19.4% to 1,669
- Pending Sales decreased 12.6% to 1,296
- Inventory decreased 23.3% to 8,899
For the month of March:
- Median Sales Price increased 9.8% to $258,000
- Days on Market decreased 21.9% to 57
- Percent of Original List Price Received increased 1.1% to 99.1%
- Months Supply of Inventory decreased 22.7% to 1.7
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Weekly Market Report
For Week Ending April 14, 2018
One begins to wonder just how long the housing market can work in the favor of sellers. Low inventory continues to create a competitive situation for buyers that has sales prices meeting asking prices and often going over for well-priced homes that show well. As long as buyers continue to form new households and feel financially confident within an inviting economy, this could be the state of residential real estate for quite some time.
In the Twin Cities region, for the week ending April 14:
- New Listings decreased at 1,653
- Pending Sales decreased 14.0% to 1,258
- Inventory decreased 24.2% to 8,752
For the month of March:
- Median Sales Price increased 9.8% to $258,000
- Days on Market decreased 21.9% to 57
- Percent of Original List Price Received increased 1.1% to 99.1%
- Months Supply of Inventory decreased 22.7% to 1.7
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
March Monthly Skinny Video
“The underlying fundamentals continue to support a solid marketplace.”
Mixed Spring: Activity cools while prices, market times remain hot
By David Arbit on Wednesday, April 18th, 2018
From colder-than-average temperatures to a record-breaking snow storm, this spring has been anything but normal. While those searching for homes have seen more options since January or February, they’re still seeing fewer options compared to last year. That’s capped sales activity—particularly at the entry-level prices—and the lack of inventory combined with rising prices is encouraging some sellers to hold onto their properties.
In March, sellers listed 17.5 percent fewer homes on the market—the fifth consecutive month of declines compared to a year ago. Largely due to the shortage, closed sales declined 10.3 percent compared to the year prior. For-sale housing inventory was 26.1 percent lower than March 2017, the largest decline in over a year. This shortage has created a competitive environment where multiple offers and homes selling for over list price have become more common.
Sellers are receiving strong offers close to their original list price quickly, which can sometimes frustrate home buyers. New construction closed sales rose 13.1 percent compared to last March. Although single family homes made up about 74.0 percent of all sales, townhomes have enjoyed more resilient demand lately. Similarly, previously-owned homes made up about 89.0 percent of sales but new construction showed a much stronger increase in pending and closed purchase activity.
“We’re seeing some early evidence that the seller’s market could be starting to shift toward a balanced market,” said Kath Hammerseng, President of the Minneapolis Area Association of REALTORS® (MAAR), “When it comes to the long-term health of the housing market, that’s very much a good thing.”
March 2018 by the Numbers (compared to a year ago)
- Sellers listed 6,737 properties on the market, a 17.5 percent decrease
- Buyers closed on 3,978 homes, a 10.3 percent decrease
- Inventory levels for March fell 26.1 percent compared to 2017 to 8,289 units
- Months Supply of Inventory was down 22.7 percent to 1.7 months
- The Median Sales Price rose 9.8 percent to $258,000, a record high for March
- Cumulative Days on Market declined 21.9 percent to 57 days, on average (median of 22)
- Changes in Sales activity varied by market segment:
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- Single family sales fell 9.8 percent; condo sales declined 10.0 percent; townhome sales shrank 9.6 percent
- Traditional sales fell 7.5 percent; foreclosure sales decreased 39.3 percent; short sales fell 47.3 percent
- Previously-owned sales fell 11.4 percent; new construction sales rose 13.1 percent
“Prices continue to rise while market times remain brisk,” said Todd Urbanski, President-Elect of MAAR. “This spring market is shaping to be more buyer-friendly than last year, it’s still a great time to get properties listed.”