The U.S. Commerce Department reported this week that new-home sales rose 7.9% in January to a seasonally adjusted annual rate of 764,000 units, which is 18.6% higher than a year ago and the highest monthly sales pace since July 2007. While new-home sales are increasing, new-home inventories fell 6.6% from a year ago and are now the lowest since 2017. The National Association of REALTORS® and others are calling on home builders to increase residential home construction to meet increased demand, but a labor shortage, higher costs of construction and possible supply-chain disruption due to COVID-19 may limit homebuiders’ ability to respond to the increased demand.

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

• New Listings increased 8.0% to 1,395
• Pending Sales increased 12.2% to 1,083
• Inventory decreased 13.1% to 7,785

For the month of January:

• Median Sales Price increased 4.2% to $270,000
• Days on Market increased 3.1% to 67
• Percent of Original List Price Received decreased 0.1% to 97.0%
• Months Supply of Homes For Sale decreased 11.1% to 1.6

All comparisons are to 2019

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

The ShowingTime Showing Index® for January saw a 20.2 percent year-over-year increase in showing traffic nationwide. All regions of the country were up double-digits from the year before, with the Midwest Region up 15.7 percent and the West Region, up 34.1 percent. As showing activty is a leading indicator for future home sales, the 2020 housing market is off to a strong start.

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

• New Listings increased 31.4% to 1,269
• Pending Sales increased 20.8% to 1,073
• Inventory decreased 14.4% to 7,734

For the month of January:

• Median Sales Price increased 4.2% to $270,000
• Days on Market increased 3.1% to 67
• Percent of Original List Price Received decreased 0.1% to 97.0%
• Months Supply of Homes For Sale decreased 11.1% to 1.6

All comparisons are to 2019

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

According to the latest REALTORS® Confidence Index Survey of more than 8,000 real estate respondents, one in four home sales faced a settlement delay in December 2019. Seventy-one percent closed on time and four percent were canceled altogether. The biggest reasons cited for a delayed closing were issues related to financing (37%), appraisal issues (19%), and home inspection/environmental issues (17%).

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

• New Listings increased 9.6% to 1,156
• Pending Sales increased 13.9% to 967
• Inventory decreased 14.8% to 7,692

For the month of January:

• Median Sales Price increased 4.2% to $270,000
• Days on Market increased 3.1% to 67
• Percent of Original List Price Received decreased 0.1% to 97.0%
• Months Supply of Homes For Sale decreased 11.1% to 1.6

All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

The impact of the spread of Coronavirus continues to grow as the 30-year fixed-rate mortgage fell to 3.51% last week. Lawrence Yun, chief economist at the National Association of REALTORS®, explained that the upper-end of the housing market may soften with the temporary loss of Chinese buyers. “China has been the most important source of foreign demand for real estate,” he explained. Until temporary travel bans are lifted, many potential Chinese buyers will be restricted from visiting the U.S., which will in turn reduce the number of active home buyers, particularly at the high end of the market.

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

• New Listings increased 14.1% to 1,315
• Pending Sales increased 18.4% to 960
• Inventory decreased 15.6% to 7,556

For the month of January:

• Median Sales Price increased 4.2% to $270,000
• Days on Market increased 1.5% to 66
• Percent of Original List Price Received decreased 0.1% to 97.0%
• Months Supply of Homes For Sale decreased 16.7% to 1.5

All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

A newly released report from the U.S. Census Bureau shows in Q4 2019 the national homeownership rate rose to 65.1%. This is the highest level since Q3 2013 when the homeownership rate was 65.3%. For perspective, the national homeownership rate since 2000 peaked at 69.1% in Q1 2005 and was at its lowest at 62.9% in Q2 2016. The increase in the homeownership rate since Q2 2016 represents nearly 2.7 million additional owner-occupied homes.

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

• New Listings increased 4.5% to 978
• Pending Sales increased 6.1% to 904
• Inventory decreased 15.5% to 7,621

For the month of December:

• Median Sales Price increased 7.9% to $278,200
• Days on Market decreased 1.8% to 56
• Percent of Original List Price Received increased 0.5% to 97.3%
• Months Supply of Homes For Sale decreased 15.8% to 1.6

All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

CoreLogic’s latest Single-Family Rent Index report saw the cost of renting single-family homes, including condos, up 3% in November 2019 compared to November 2018. According to the report, rent prices started climbing in 2010 and have stabilized around an annualized rate of 3% since early 2019. With the cost of rent continuing to trend upward, it makes sense that many are considering paying their own mortgage, instead of their landlord’s, by becoming first-time homeowners.

In the Twin Cities region, for the week ending January 25:

• New Listings decreased 5.2% to 916
• Pending Sales decreased 0.9% to 795
• Inventory decreased 14.9% to 7,751

For the month of December:

• Median Sales Price increased 8.2% to $279,000
• Days on Market decreased 1.8% to 56
• Percent of Original List Price Received increased 0.5% to 97.3%
• Months Supply of Homes For Sale decreased 15.8% to 1.6

All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

The Mortgage Bankers Association reported that applications for home purchases rose 16% last week, reaching its highest level since 2009. Applications to refinance also grew, increasing a stunning 43% last week and are 109% higher than a year ago, the MBA reports. The sharp increases in both purchase and refinance applications are spurred by lower rates providing incentives for both buyers and existing homeowners to act.

In the Twin Cities region, for the week ending January 18:

• New Listings decreased 14.3% to 904
• Pending Sales increased 2.5% to 734
• Inventory decreased 14.3% to 7,770

For the month of December:

• Median Sales Price increased 8.2% to $279,000
• Days on Market decreased 1.8% to 56
• Percent of Original List Price Received increased 0.5% to 97.3%
• Months Supply of Homes For Sale decreased 21.1% to 1.5

All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Freddie Mac reported that the average 30-year fixed-rate mortgage dropped to 3.64% this week, the lowest level in three months and down from 4.45% one year ago. Additionally, conforming and FHA loan limits have increased for 2020. Increased loan limits coupled with low rates, will give more buyers the ability to purchase a wider range of properties. These changes, along with the continued strong labor market, is likely to spur buyer demand even in the face of a constrained supply of homes for sale throughout much of the country.

In the Twin Cities region, for the week ending January 11:

• New Listings decreased 4.9% to 998
• Pending Sales decreased 12.2% to 592
• Inventory decreased 15.2% to 7,624

For the month of December:

• Median Sales Price increased 8.0% to $278,600
• Days on Market decreased 1.8% to 56
• Percent of Original List Price Received increased 0.4% to 97.2%
• Months Supply of Homes For Sale decreased 21.1% to 1.5

All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

With the start of the New Year, the real estate market turns more active across mostof the country. Sellers connect with agents, resulting in a pop of new listings, followed by renewed interest by buyers, which leads to an increase in pending sales. This pattern is seen every year and 2020 should be no different. We’re starting off the year with continued low interest rates, low unemployment, and rising rents nationally. This sets us up for a strong start to 2020 and plenty of optimism for the coming spring market.

In the Twin Cities region, for the week ending January 4:

• New Listings decreased 17.9% to 683
• Pending Sales decreased 7.0% to 546
• Inventory decreased 12.8% to 8,064

For the month of November:

• Median Sales Price increased 5.6% to $279,900
• Days on Market decreased 1.9% to 51
• Percent of Original List Price Received increased 0.2% to 97.5%
• Months Supply of Homes For Sale decreased 4.5% to 2.1

All comparisons are to 2019
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Data from the Census Bureau’s Survey of Construction (SOC) and the National Association of Home Builders shows that 62.5 percent of all new construction homes started in 2018 were built as part of a community or homeowner’s association, up from 47.6% in 2009. These associations are typically created when the developments are built to maintain common areas of the developments and to enforce private deed restrictions, which often detail requirements for the exterior appearance and upkeep of properties.

In the Twin Cities region, for the week ending December 28:

• New Listings decreased 15.6% to 259
• Pending Sales decreased 3.7% to 495
• Inventory decreased 14.0% to 8,354

For the month of November:

• Median Sales Price increased 5.6% to $279,900
• Days on Market decreased 1.9% to 51
• Percent of Original List Price Received increased 0.2% to 97.5%
• Months Supply of Homes For Sale decreased 4.5% to 2.1

All comparisons are to 2018
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.