Despite falling temperatures and a surge in COVID-19 cases across the country, the U.S. real estate market remains active, with homes selling in record time due to robust buyer demand and a shortage of housing options. With inventory down 28.4% compared to a year ago, the average home spent just 61 days on the market in January, a 14% drop from last year and the fastest pace of any January on record, according to Realtor.com’s monthly housing report.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING FEBRUARY 5:

• New Listings decreased 15.3% to 1,018
• Pending Sales decreased 19.1% to 883
• Inventory decreased 21.2% to 4,341

FOR THE MONTH OF DECEMBER:

• Median Sales Price increased 8.0% to $331,420
• Days on Market decreased 12.8% to 34
• Percent of Original List Price Received decreased 0.2% to 99.5%
• Months Supply of Homes For Sale decreased 18.2% to 0.9

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Home seller profits increased in more than 90% of housing markets last year, the highest level since 2008, according to ATTOM Data Solutions’ Year-End 2021 U.S. Home Sales Report. On average, sellers saw a profit of $94,092 on a typical median-priced home in 2021, an increase of 45% from 2020 and up 71% from 2019. Sellers saw a 45.3% return on investment compared to the original purchase price, with the highest profits found among sellers in western states.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING JANUARY 29:

• New Listings decreased 17.8% to 850
• Pending Sales decreased 12.8% to 826
• Inventory decreased 21.2% to 4,432

FOR THE MONTH OF DECEMBER:

• Median Sales Price increased 7.9% to $331,270
• Days on Market decreased 12.8% to 34
• Percent of Original List Price Received decreased 0.2% to 99.5%
• Months Supply of Homes For Sale decreased 18.2% to 0.9

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

With a shortage of options and bidding wars reaching an all-time high last year, an increasing number of buyers waived financing, appraisal, and inspection contingencies in hopes of making their offers more attractive to sellers. That number has been trending downward in recent months, according to the National Association of REALTORS® December 2021 REALTORS® Confidence Index Survey, which reports that while 79% of buyers waived a contract contingency in June 2021, only 60% of buyers did so in December.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING JANUARY 22:

• New Listings decreased 10.9% to 845
• Pending Sales decreased 15.6% to 767
• Inventory decreased 21.5% to 4,491

FOR THE MONTH OF DECEMBER:

• Median Sales Price increased 7.9% to $331,100
• Days on Market decreased 12.8% to 34
• Percent of Original List Price Received decreased 0.2% to 99.5%
• Months Supply of Homes For Sale decreased 27.3% to 0.8

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

As the U.S. economy recovers from the pandemic, the number of homeowners in forbearance continues to decline, with the total number of loans in forbearance falling to 1.41% as of last measure, making it the first time in 18 months the rate has dropped below 1.5%, according to the Mortgage Bankers Association.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING JANUARY 15:

• New Listings decreased 18.5% to 790
• Pending Sales decreased 15.0% to 722
• Inventory decreased 23.2% to 4,463

FOR THE MONTH OF DECEMBER:

• Median Sales Price increased 7.8% to $331,000
• Days on Market decreased 15.4% to 33
• Percent of Original List Price Received decreased 0.2% to 99.5%
• Months Supply of Homes For Sale decreased 27.3% to 0.8

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Mortgage rates rose to their highest level since May 2020, with the 30-year fixed rate mortgage averaging 3.22% during the first week of 2022, more than half a percent higher than January 2021. The increase in interest rates has had little effect on buyer demand, which remains high into the new year, as purchase loan applications were up 1.4% on a seasonally adjusted basis the same week, according to the Mortgage Bankers Association’s Market Composite Index.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING JANUARY 8:

• New Listings decreased 16.2% to 814
• Pending Sales decreased 19.1% to 541
• Inventory decreased 22.5% to 4,493

FOR THE MONTH OF DECEMBER:

• Median Sales Price increased 7.9% to $331,200
• Days on Market decreased 15.4% to 33
• Percent of Original List Price Received decreased 0.2% to 99.5%
• Months Supply of Homes For Sale decreased 27.3% to 0.8

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

After a brief moderation last spring and summer, lumber prices are on the rise again. According to the National Association of Home Builders, lumber prices have nearly tripled the past 4 months, adding more than $18,600 to the price of the average new single-family home. The COVID-19 pandemic continues to impact the lumber market, with the most recent surge in prices due to supply chain disruptions, sharp increases of tariffs on Canadian lumber imports, and record wildfires in the western U.S. and British Columbia.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING JANUARY 1:

• New Listings decreased 26.5% to 403
• Pending Sales decreased 17.7% to 567
• Inventory decreased 21.8% to 4,890

FOR THE MONTH OF NOVEMBER:

• Median Sales Price increased 9.6% to $339,900
• Days on Market decreased 11.8% to 30
• Percent of Original List Price Received decreased 0.4% to 99.8%
• Months Supply of Homes For Sale decreased 14.3% to 1.2

All comparisons are to 2021

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Home prices soared to new heights in 2021 and homebuyers are having to borrow more to afford their home purchase as a result, with the average home loan reaching $414,115 as of last measure, according to The Mortgage Bankers Association. As prices and loan amounts increase, borrowers have to come up with additional funds for down payments, forcing some to dip into their savings, take on second jobs, or borrow money from friends or family to remain competitive and afford the increasing costs of homeownership in the current market.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING DECEMBER 25:

• New Listings decreased 25.1% to 284
• Pending Sales decreased 11.1% to 561
• Inventory decreased 22.0% to 5,156

FOR THE MONTH OF NOVEMBER:

• Median Sales Price increased 9.5% to $339,543
• Days on Market decreased 11.8% to 30
• Percent of Original List Price Received decreased 0.4% to 99.8%
• Months Supply of Homes For Sale decreased 21.4% to 1.1

All comparisons are to 2020

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Single-family rents increased 10.9% year-over-year as of last measure, the fastest year-over-year increase in more than 16 years, and more than 3 times the rate of increase a year earlier, according to the CoreLogic Single-Family Rent Index (SFRI). Vacancy rates are at a 25-year low, as demand for rental units has surged this year due to skyrocketing sales prices and low inventory in the residential housing sector, leading some aspiring buyers to rent while waiting for the market to moderate.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING DECEMBER 18:

• New Listings decreased 23.5% to 565
• Pending Sales decreased 18.5% to 787
• Inventory decreased 20.8% to 5,543

FOR THE MONTH OF NOVEMBER:

• Median Sales Price increased 9.6% to $339,625
• Days on Market decreased 11.8% to 30
• Percent of Original List Price Received decreased 0.4% to 99.8%
• Months Supply of Homes For Sale decreased 21.4% to 1.1

All comparisons are to 2020

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

With developable lots in short supply across the country, home builders are finding other ways to meet booming buyer demand. According to the most recent Annual Builder Practices Survey, one in four new single-family detached homes built in 2020 were located in established neighborhoods, with 19% of those homes built on infill lots, while 6% were teardowns. Demand for single-family homes continues to outpace supply, and infill development is expected to increase in market share in 2022 as builders ramp up production.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING DECEMBER 11:

• New Listings decreased 21.4% to 701
• Pending Sales decreased 4.5% to 820
• Inventory decreased 17.3% to 5,965

FOR THE MONTH OF NOVEMBER:

• Median Sales Price increased 9.5% to $339,300
• Days on Market decreased 11.8% to 30
• Percent of Original List Price Received decreased 0.4% to 99.8%
• Months Supply of Homes For Sale decreased 21.4% to 1.1

All comparisons are to 2020

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

The latest REALTORS® Confidence Index Survey found that, nationally, sellers of homes that closed in October saw 3.7 offers on average, which was up from 3.4 offers on average a year ago. The survey also found the typical buyer had made two unsuccessful offers before securing their new home, and that first-time buyers accounted for 29% of existing-home buyers, down from 32% a year ago. Cash purchases rose to 24% of sales from 19% one year ago, and non-primary residence buyers (investors and second home buyers) rose to 17% from 14% in 2020.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING DECEMBER 4:

• New Listings decreased 1.0% to 860
• Pending Sales decreased 12.5% to 907
• Inventory decreased 16.1% to 6,297

FOR THE MONTH OF OCTOBER:

• Median Sales Price increased 7.9% to $340,000
• Days on Market decreased 22.9% to 27
• Percent of Original List Price Received decreased 0.2% to 100.3%
• Months Supply of Homes For Sale decreased 17.6% to 1.4

All comparisons are to 2020

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.