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Traditional Segment Blooms, Sellers More Optimistic

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After being cooped up for a long, cold winter, homeowners in the 13-county Minneapolis-St. Paul metropolitan area showed renewed signs of optimism in March. Seller activity rose 5.5 percent to 6,492 newly listed homes, a crucial increase toward fueling buyer demand. Inventory levels are still hovering near a 10-year low, but consumers should have more options to choose from this year compared to recent years. Pending sales were 8.4 percent lower, resulting from a desired shift to less foreclosure and short sale activity. Most indicators continue to suggest ongoing recovery and stabilization.

It’s imperative to understand market activity by segment. Buyers are now leaning toward traditional purchases first because they are making up a greater share of the marketplace. These properties also tend to be in better condition, many come with warranties and traditional sellers tend to be more cooperative than banks. New traditional listings rose 22.1 percent compared to March 2013, while foreclosure and short sale new listings fell 39.9 and 53.8 percent, respectively.

On the demand side, pending sales declined 8.4 percent to 4,141 properties overall, which still reflects less distressed market activity. Once again, traditional pending sales were up 2.6 percent while pending foreclosure and short sales fell 32.2 and 45.1 percent, respectively. Consumers shopping for homes now have 13,086 properties to choose from – or 4.1 percent fewer than last year at this time, marking the smallest year-over-year decline since November 2013.

“There’s a lot of excitement and positive energy out there, especially among sellers,” said Emily Green, President of the Minneapolis Area Association of REALTORS® (MAAR). “Some would-be sellers have been lifted out from underwater by rising prices and less competition from foreclosures, while other move-up buyers are also eager to buy.”

The lowest price point of the market is evaporating. As a result, the median sales price for the metro rose 7.6 percent to $190,000, marking 25 straight months of year-over-year price gains. Last March, foreclosures and short sales made up 25.2 percent of all new listings. This March, they made up just 13.3 percent. For closed sales, the number fell from 37.6 to 26.6 percent.

On average, homes spent just 95 days on the market, 12.0 percent less than last March. Sellers are receiving an average of 95.0 percent of their original list price. The Twin Cities now has 3.1 months’ supply of inventory, suggesting a favorable selling environment. Importantly, interest rates remain affordable and well below their long-term average.

“Traditional properties are dominating the market again,” said Mike Hoffman, MAAR President-Elect. “As distressed product clears the pipeline, consumers are more likely to embark upon negotiations and transactions with people rather than banks.”

Weekly Market Report

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As April encroaches and spring feels more official, so does the possibility of a brightened, exciting housing market. Even though some areas across the country have seen a pause in buyer activity, the fundamentals remain positive. Traditional home buyers are apt to bud like a spring mix of lavender, peonies and tulips. And home prices are rising as surely as soil is being tilled for another fruitful season, adding even more to those warm fuzzy feelings sure to come.

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

  • New Listings increased 18.4% to 1,599
  • Pending Sales decreased 5.6% to 1,101
  • Inventory decreased 5.5% to 13,056

For the month of February:

  • Median Sales Price increased 14.4% to $183,000
  • Days on Market decreased 10.8% to 99
  • Percent of Original List Price Received decreased 0.2% to 93.6%
  • Months Supply of Inventory decreased 9.4% to 2.9

All comparisons are to 2013

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

Weekly Market Report

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This spring, investors are expected to play a less dominant role since there are fewer attractive bargains to be had. This allows room for younger families and individuals fed up with rent hikes. The affordability picture has come down but remains attractive, pressured by rising but not fully recovered prices and slightly higher rates. Despite some inventory shortages, several local markets are in balanced territory heading into the peak selling season.

In the Twin Cities region, for the week ending March 22:

  • New Listings increased 2.6% to 1,490
  • Pending Sales decreased 6.9% to 1,010
  • Inventory decreased 6.8% to 12,791

For the month of February:

  • Median Sales Price increased 14.4% to $183,000
  • Days on Market decreased 10.8% to 99
  • Percent of Original List Price Received decreased 0.2% to 93.6%
  • Months Supply of Inventory decreased 12.5% to 2.8

All comparisons are to 2013

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

March Skinny Video

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Where has the Twin Cities real estate market been and where is it heading? This monthly summary provides an overview of current trends and projections for future activity. Narrated by Carson Brooks (2014 Secretary, Minneapolis Area Association of REALTORS®), video produced by Chelsie Lopez.

Weekly Market Report

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Spring is finally beginning to show its face after a long, cold winter in many parts of the country. Generally, housing activity is waking up as well. It’s been a slow start to the selling season thus far, but many believe this has more to do with the weather and lack of inventory than it does demand. Any gains may be moderate compared to a year ago, but most experts agree that market normalcy and stabilization are upon us.

In the Twin Cities region, for the week ending March 15:

  • New Listings decreased 0.9% to 1,462
  • Pending Sales decreased 13.1% to 912
  • Inventory decreased 8.2% to 12,475

For the month of February:

  • Median Sales Price increased 14.4% to $183,000
  • Days on Market decreased 10.8% to 99
  • Percent of Original List Price Received decreased 0.2% to 93.6%
  • Months Supply of Inventory decreased 12.5% to 2.8

All comparisons are to 2013

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

Weekly Market Report

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More daylight should help bring more hours of long-desired activity to the housing market. As the spring market dawns, sellers may see prices continue to rise and more homes should find their way to market. As long as the economy continues to gain momentum and mortgages remain low, previously underwater sellers and eager buyers should find opportunities to talk business.

In the Twin Cities region, for the week ending March 8:

  • New Listings increased 6.5% to 1,454
  • Pending Sales decreased 14.7% to 821
  • Inventory decreased 9.4% to 12,118

For the month of February:

  • Median Sales Price increased 14.4% to $183,000
  • Days on Market decreased 10.8% to 99
  • Percent of Original List Price Received decreased 0.2% to 93.6%
  • Months Supply of Inventory decreased 12.5% to 2.8

All comparisons are to 2013

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

Old Man Winter, Low Inventory and Fewer Foreclosures Weigh on Sales

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Minneapolis, Minnesota (March 12, 2014) – The 13-county Minneapolis-St. Paul metropolitan area housing market was negatively affected by the extreme winter. Inventory levels are also still hovering at a 10-year low, meaning consumers have far less product to purchase than in recent years. Another factor dragging down the headline numbers is the shift away from distressed homes and back toward traditional activity. Most indicators continue to suggest ongoing recovery, stabilization and normalization. Spring will offer better clues as to the health of the Twin Cities housing market.

Although new listings declined 5.0 percent to 4,616 overall, seller activity is likely to pick up during the spring and summer months. Additionally, and as has been the case for 22 consecutive months, new listings in the higher-priced traditional segment rose 9.1 percent over the same period, while foreclosure and short sale new listings fell 34.5 and 54.6 percent, respectively.

On the demand side, closed sales were down 14.0 percent to 2,465 properties overall, which speaks to the low number of weather-impeded purchase agreements entered into during January. Once again, traditional closed sales were up 6.7 percent while foreclosure sales and short sales fell 33.4 and 61.9 percent, respectively. Consumers shopping for homes now have 11,975 properties to choose from – or 9.6 percent fewer than February 2013.

“It was an interesting month,” said Emily Green, President of the Minneapolis Area Association of REALTORS® (MAAR). “While the market shifts back toward where it was before the bubble, we expect to see foreclosures and short sales become less prevalent, which can dilute overall numbers. Then you have the weather.”

As a result of this shift, the median sales price for the metro rose a strong 14.4 percent to $183,044, officially marking 24 straight month of year-over-year median price gains. Last February, foreclosures and short sales comprised 43.9 percent of all closed sales. This February, these segments made up 30.3 percent of all sales. Traditional homes are selling at a median price of $210,000; foreclosures for $131,100; short sales for $150,000.

On average, homes spent just 99 days on the market, 10.8 percent less than last year. Sellers are receiving an average of 93.5 percent of their original list price. The Twin Cities now has 2.8 months’ supply of inventory, suggesting a favorable selling environment. Importantly, interest rates remain affordable and well below their long-term average.

“The fundamentals haven’t changed.” said Mike Hoffman, MAAR President-Elect. “Our local economy is diverse and growing and so is our population. It’s important not to read too much into minor fluctuations like this.”

Weekly Market Report

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Extreme winter weather may be partly responsible for sluggish durable goods sales, consumer spending, business inventories and exports. As more income goes toward heating bills, four-wheel alignments, frozen pipes and other winter expenses, there is less (or no) remaining discretionary income. Several southern cities were paralyzed by winter storms, costing the economy billions in lost productivity, while consumers were forced to hunker down for much of the winter in the Midwest and Northeast. Consumers should be more than ready for warmer days ahead.

In the Twin Cities region, for the week ending March 1:

  • New Listings decreased 12.6% to 1,245
  • Pending Sales decreased 8.6% to 901
  • Inventory decreased 9.1% to 12,079

For the month of February:

  • Median Sales Price increased 14.4% to $183,044
  • Days on Market decreased 10.8% to 99
  • Percent of Original List Price Received decreased 0.3% to 93.5%
  • Months Supply of Inventory decreased 12.5% to 2.8

All comparisons are to 2013

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

Weekly Market Report

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Early 2014 data is telling us that the trend is still one of improvement, albeit not at the speedy pace we’d prefer. Spring hasn’t arrived yet and we’ll have to weather a few more months of unpredictable weather before the sing-song tempo of May markets return. Although we await warmer days ahead, there’s no need to wait to gear up for a headier market. Remaining on top of weekly trends and using data to bolster marketing efforts makes for a winner dinner.

In the Twin Cities region, for the week ending February 22:

  • New Listings decreased 10.5% to 1,051
  • Pending Sales decreased 17.5% to 726
  • Inventory decreased 8.9% to 12,089

For the month of January:

  • Median Sales Price increased 11.6% to $178,500
  • Days on Market decreased 12.3% to 93
  • Percent of Original List Price Received remained flat at 93.5
    • Months Supply of Inventory decreased 12.5% to 2.8

All comparisons are to 2013

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