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Weekly Market Report

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Some goodbyes are easier than others. As we bid farewell to the economic uncertainties of 2014, all eyes are fixated on what 2015 might bring. The economy – specifically job growth – picked up steam in the second half of the year, and that should continue. Housing performed reasonably well, but some metrics didn’t improve as much as in 2013. The new year should bring new listings, new inventory and new buyers to the marketplace.

In the Twin Cities region, for the week ending January 10:

  • New Listings increased 7.1% to 1,030
  • Pending Sales increased 17.8% to 642
  • Inventory decreased 6.1% to 11,999

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 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

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Ye olde 2014 data will likely be retrospective analysis for the next few months, but 2015 is already stirring up rumors of potential trends as we charge into the new year. The buzzworthy hot topic, low interest rates, should keep bolstering home sales as it is speculated to become a friendlier market in the coming year for many types of buyers.

In the Twin Cities region, for the week ending January 3:

  • New Listings decreased 18.6% to 551
  • Pending Sales increased 9.1% to 553
  • Inventory decreased 4.0% to 12,821

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 remained flat at 2.9

All comparisons are to 2014

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

Year End Real Estate Stats

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By Aubray Erhardt on Wednesday, January 14th, 2015

2014 Annual Wrap-Up: Recovery Continues, Market Normalizing.

Minneapolis, Minnesota (January 14, 2015) – Strong demand and higher prices were some of the positive developments seen in 2014. Market recovery continued to take hold. Sellers were motivated by rising prices and quick market times, and so they listed more properties for sale. Closed sales activity ended the year at the second highest level since 2005. Even though the active supply of homes for sale fell to a 12-year low, home buyers had more choices during the critical spring and summer selling season. Homes sold in less time, which was great news for sellers. Absorption rates were flat and still slightly favored sellers but 2015 should see more balance. Foreclosure activity fell for a third straight year, while new construction and condo activity continued to soar in and around downtown.

2014 by the Numbers

• Sellers listed 73,768 properties on the market, a 2.3 percent increase from 2013 and the highest level since 2010
• Buyers closed on 49,541 homes, down 6.9 percent from 2013 yet the second highest figure since 2005
• Inventory levels for December fell 7.2 percent from 2013 to 11,822 units, the lowest level in 12 years but May 2014 inventory was 13.4 percent higher than May 2013.
• Months Supply of Inventory was flat at 2.9 months, tied for a 12-year low
• The Median Sales Price rose 7.2 percent to $205,739, marking a seven-year high
o This measure of home prices is 11.8 percent below its 2006 peak and 37.2 percent above its 2011 valley
• Cumulative Days on Market was down 6.0 percent to 78 days, on average—an eight-year record pace
• Lender-mediated properties made up a significantly smaller share of overall activity across multiple metrics
o 12.2 percent of all New Listings were lender-mediated (either foreclosures or short sales), down from 21.6 percent in 2013 and 34.7 percent in 2012
o 16.4 percent of all Inventory was lender-mediated, down from 26.1 percent in 2013 and 38.7 percent in 2012
o 16.5 percent of all Closed Sales were lender-mediated, down from 26.3 percent in 2013 and 39.7 percent in 2012
From The Skinny Blog.

Weekly Market Report

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It is typically during the final weeks of a calendar year when residential real estate activity hits its seasonal lows, even when some year-over-year comparisons show progress. Don’t be fooled by this time of year. Buyers and sellers are preparing for promising spring and summer markets. Of late, the spring market tends to get hopping before the -ary months are even complete.

In the Twin Cities region, for the week ending December 27:

  • New Listings decreased 13.5% to 268
  • Pending Sales decreased 9.8% to 359
  • Inventory decreased 4.4% to 13,152

For the month of November:

  • Median Sales Price increased 5.1% to $205,000
  • Days on Market increased 5.3% to 79
  • Percent of Original List Price Received decreased 0.7% to 94.7%
  • Months Supply of Inventory increased 8.8% to 3.7

All comparisons are to 2014

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

Weekly Market Report

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Even though interest rates remain low, there is talk of homeownership numbers being at 20-year lows. Tight lending restrictions may be partly to blame for the dip in the number of people flocking to buy a home. A turnover of the trend could be possible in the new year, but during the weeks surrounding the big winter holidays, we all tend to have to play the wait-and-see game.

In the Twin Cities region, for the week ending December 20:

  • New Listings increased 6.1% to 592
  • Pending Sales decreased 1.3% to 689
  • Inventory decreased 4.4% to 13,698

For the month of November:

  • Median Sales Price increased 5.1% to $205,000
  • Days on Market increased 5.3% to 79
  • Percent of Original List Price Received decreased 0.7% to 94.7%
  • Months Supply of Inventory increased 8.8% to 3.7

All comparisons are to 2013

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

Weekly Market Report

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We have reached the time of year when year-to-date and rolling 12-month time calculations become especially reliable. Buyer and seller activity continues at a decent clip, though generally lower than the spring and summer selling seasons. With the price of gasoline where it is, holiday spending should be strong, which benefits the economy and is, therefore, also good for housing. There’s plenty to be cheerful about this December.

In the Twin Cities region, for the week ending December 13:

  • New Listings decreased 12.9% to 661
  • Pending Sales increased 6.6% to 679
  • Inventory decreased 2.7% to 14,268

For the month of November:

  • Median Sales Price increased 5.1% to $205,000
  • Days on Market increased 5.3% to 79
  • Percent of Original List Price Received decreased 0.7% to 94.7%
  • Months Supply of Inventory increased 8.8% to 3.7

All comparisons are to 2013

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

Weekly Market Report

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Trendsetters in economic analysis have lately been choosing comparative figures between the present and 2007 as the must-have items of the season. Comparing recent data on unemployment, spending habits and housing starts to the vintage days of 2007 are opening up the conversation of the economy’s future. Recovery is in style and may even continue as we dive headlong into the heart of the winter months.

In the Twin Cities region, for the week ending December 6:

  • New Listings decreased 4.4% to 849
  • Pending Sales increased 5.7% to 815
  • Inventory decreased 0.9% to 14,806

For the month of November:

  • Median Sales Price increased 5.1% to $205,000
  • Days on Market increased 5.3% to 79
  • Percent of Original List Price Received decreased 0.7% to 94.7%
  • Months Supply of Inventory increased 8.8% to 3.7

All comparisons are to 2013

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

Recovery Plows Forward as New Condo Prices Reach Fresh Highs

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The Twin Cities regional housing market continued to make strides toward recovery in November, even as some measures appear to show unfavorable movement. Pending sales, or the number of signed purchase agreements, fell 7.5 percent in November compared to last year. New listings decreased 12.8 percent. Inventory levels were nearly flat, down 1.0 percent to 14,948 homes.

The median sales price rose 5.1 percent to $205,000, marking 33 consecutive months of year-over-year median price gains. Price per square foot rose 3.4 percent to $120 while months supply of inventory increased 5.9 percent to 3.6. Days on market until sale rose 5.3 percent to 79.

As has reliably been the case for years, pending purchase activity of traditional homes rose even while the overall pending sales indicator declined, signaling the ongoing shift from distressed properties back to the once-again dominant traditional sector. That changing mix of sales activity has helped catalyze the nearly three straight years of price gains seen in the region.

Another factor boosting prices is newly constructed condominiums, particularly in downtown Minneapolis. There’s a building boom happening downtown, even after factoring out the construction and surrounding redevelopment of the new stadium for the Minnesota Vikings.

The median price of new construction condominium sales rose 65.2 percent in November to a new high of $366,242. Although that’s for the entire Twin Cities area, downtown new construction condos comprised about 30.0 percent of all similar units in the Twin Cities in November 2006 but made up about 60.0 percent of that segment in November 2014.

Despite the shiny marvel of new downtown development, the overall housing stock in the Twin Cities region remains quite affordable historically. The Twin Cities housing affordability index of 191 means that the median household income was 91 percent higher than the necessary income needed to qualify for the median-priced home under current interest rates.

In October, the Bureau of Labor Statistics stated that the Twin Cities had the lowest rate of unemployment among major metros in the nation at 3.2 percent. The national rate, at 5.8 percent, is the lowest since July 2008. With national private job creation reaching above 300,000 new payrolls in November, the overall jobs picture is bright.

Weekly Market Report

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No good news goes unpunished. As the economy churned out more than 320,000 private jobs in November, some say the Federal Reserve is that much more likely to stick to the plan of raising rates by mid-2015. The truth is that the U.S. is on track for the strongest yearly job growth since 1999. That means more families are in a better position to buy a home, which is of course good news for housing. Let’s take a look at the local housing market.

In the Twin Cities region, for the week ending November 29:

  • New Listings decreased 13.5% to 468
  • Pending Sales decreased 8.3% to 539
  • Inventory increased 0.5% to 15,557

For the month of November:

  • Median Sales Price increased 5.1% to $205,000
  • Days on Market increased 5.3% to 79
  • Percent of Original List Price Received decreased 0.7% to 94.7%
  • Months Supply of Inventory increased 5.9% to 3.6

All comparisons are to 2013

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