Median Price Exceeds $200,000 – Highest Since 2007

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In light of a 14.2 percent increase in pending sales, Twin Cities home buyers seem unphased by recent mortgage rate increases. Even with rates around 4.5 percent, the housing stock remains highly affordable by historical comparison. In 25 of the past 26 months, there have been year-over-year gains in pending sales; and the metric is currently at its highest level since June 2006. House hunters are watching seller activity for clues of additional inventory.New listings rose 20.0 percent, the second-largest gain since March 2010. Buyers have 15,193 properties from which to choose – 17.2 percent fewer than in June 2012 but 17.4 percent more than in January 2013.

The median sales price for the metro area rose 17.5 percent to $210,000. That’s the highest median sales price since December 2007. A shift in sales types is driving this price recovery. As recently as February 2011, foreclosures and short sales comprised 61.5 percent of all sales activity.

In June 2013, these two distressed segments together comprised just 21.7 percent of all sales. On the seller side, the percentage of all new listings that were distressed in June fell to 16.8 percent, its lowest level since September 2007.

Seller activity was up 20.0 percent overall, but traditional new listings surged 44.4 percent. Foreclosure new listings decreased 24.6 percent and short sale new listings fell 51.7 percent. With 16 straight months of year-over-year price gains, multiple-offer situations and just 3.5 months’ supply of inventory, the same market that recently favored buyers is now tilting toward sellers.

Looking at price movement by segment, the traditional median sales price rose 8.7 percent to $232,000; the foreclosure median sales price was up 16.9 percent to $145,000; the short sale median sales price increased 14.2 percent, also to $145,000.

On average, traditional homes sold in 68 days for 97.7 percent of original list price, foreclosures sold in 71 days for 98.2 percent of original list price and short sales lagged at 156 days and 93.0 percent of original list price.

Weekly Market Report

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A fellow named Newton once said that a body in motion tends to stay in motion. Presently, the housing market is going to be in a state of anti-motion, otherwise known as inertia. Each year, the activity around Independence Day collides with market trends because the summer holiday season ends up being more about family fun than housing fuss. As the market shifts from under us, things like historically low interest rates and rising rents cause pause for those with a clear idea of what they want despite the lack of funding to achieve it.

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

  • New Listings increased 22.8% to 1,738
  • Pending Sales increased 22.4% to 1,405
  • Inventory decreased 16.8% to 15,405

For the month of June:

  • Median Sales Price increased 17.5% to $210,000
  • Days on Market decreased 33.6% to 75
  • Percent of Original List Price Received increased 2.5% to 97.5%
  • Months Supply of Inventory decreased 27.1% to 3.5

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

Weekly Market Report

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Consumer confidence, prices, sales and percent of list price received at sale are all generally on the ups. This has been a nice place to be for real estate practitioners. In terms of expecting the unexpected trends, economists suggest tuning into indicators such as jobs, stocks and Federal Reserve policy decisions. The keen industry professional deserves the most up-to-date stats for daily decision making. Read on for this week’s deserved sneak peek.

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

  • New Listings increased 28.9% to 1,797
  • Pending Sales increased 14.1% to 1,214
  • Inventory decreased 18.2% to 15,195

For the month of May:

  • Median Sales Price increased 14.8% to $194,000
  • Days on Market decreased 29.8% to 87
  • Percent of Original List Price Received increased 2.5% to 97.0%
  • Months Supply of Inventory decreased 30.6% to 3.4

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

Weekly Market Report

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Sellers are finally starting to catch up with strong buyer demand, but at the rate that homes are being snatched up, the influx of new listings will need to be more than a short-term addition. Rising home prices, fewer days on market and more homes being sold all support a positive public opinion about real estate. The following local stats should shed invaluable quantitative support for that warm fuzzy feeling residential real estate is handing out.

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

  • New Listings increased 23.2% to 1,951
  • Pending Sales increased 12.0% to 1,329
  • Inventory decreased 21.7% to 14,569

For the month of May:

  • Median Sales Price increased 14.8% to $194,000
  • Days on Market decreased 29.8% to 87
  • Percent of Original List Price Received increased 2.5% to 97.0%
  • Months Supply of Inventory decreased 30.6% to 3.4

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

Pending Sales Levels Highest Since June 2005

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Minneapolis, Minnesota (June 12, 2013) – May was an impressive month for the 13-county Twin Cities residential real estate market. With 5,872 pending sales, buyer demand continued its ascent, surging 18.5 percent to its highest level since June 2005. Seller activity was also up, as new listings rose 26.2 percent to 8,332 units, representing the largest gain in new listings since January 2006 and the highest number since April 2010. Buyers have 14,375 properties to choose from – 22.3 percent fewer than in May 2012 but 11.6 percent more than in January 2013.

The median sales price for the metro area rose 15.1 percent to $194,450. That’s the highest median sales price since August 2008. A shift in product type is driving this improvement. As recently as February 2011, foreclosures and short sales occupied 61.5% of all sales activity. In May 2013, these two distressed segments together comprised just 26.9 percent of all sales. The percentage of all new listings that were distressed in May 2013 fell to 18.6 percent, its lowest level since September 2007.

“With the recent disparity between massive buyer demand and sluggish seller supply, it is encouraging to see a substantial increase in traditional listings,” said Andy Fazendin, President of the Minneapolis Area Association of REALTORS® (MAAR).

Although new listings were up 26.2 percent overall, traditional new listings were up 49.9 percent, while foreclosure new listings were down 15.4 percent and short sale new listings were down 43.4 percent. With 15 straight months of year-over-year price gains, multiple-offer situations and just 3.4 months’ supply of inventory, the market landscape that once favored buyers has tilted toward sellers.

The traditional median sales price was up 7.3 percent to $220,000; the foreclosure median sales price was up 18.7 percent to $137,700; the short sale median sales price was up 4.4 percent to $141,000. On average, traditional homes sold in 78 days, foreclosures sold in 87 days and short sales lagged at 174 days.

“This is still about product mix. We once filled our grocery bag with ramen noodles,” said Emily Green, MAAR President-Elect. “Today we’re buying organic, grass-fed sirloin steaks. Grocery prices haven’t increased much, but
the value of what we’re buying has. Traditional homes tend to be of a higher quality and better maintained than foreclosures or short sales.”

Weekly Market Report

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Interest rates are on the rise, but further increases should be incremental and gradual without harming housing demand. All the same, some buyers might feel an extra pinch to act soon if economic and jobs data continues on a path of improvement. Ultra-low rates will not remain the rule of the day if the economy gives the Fed no reason to maintain its quantitative easing (money printing) stimulus policies.

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

  • New Listings increased 23.6% to 1,713
  • Pending Sales increased 22.8% to 1,180
  • Inventory decreased 23.1% to 14,349

For the month of May:

  • Median Sales Price increased 15.1% to $194,450
  • Days on Market decreased 29.8% to 87
  • Percent of Original List Price Received increased 2.5% to 97.0%
  • Months Supply of Inventory decreased 30.6% to 3.4

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

Weekly Market Report

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Although buyers are still in the market for higher inventory levels, sellers remain happy with their multiple-offer situations and short days on the market. As the product mix shifts away from distressed properties and towards traditional sellers, the U.S. housing market finds itself in a place it hasn’t been in a while – healthfully competitive. Pocket listings and shadow inventory provide something for the media to talk about, but for now, the market seems strong enough to hold up to any casual cannon fodder aimed its way.

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

  • New Listings increased 29.8% to 1,799
  • Pending Sales increased 18.8% to 1,382
  • Inventory decreased 24.6% to 14,169

For the month of April:

  • Median Sales Price increased 12.0% to $182,000
  • Days on Market decreased 28.1% to 97
  • Percent of Original List Price Received increased 2.8% to 96.0%
  • Months Supply of Inventory decreased 36.0% to 3.2

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

Weekly Market Report

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Monitoring weekly data can feel like watching grass grow, especially during a busy sales environment. Most housing markets are at or near their seasonal activity apexes, so it can be difficult to remain interested in statistical lawn care. But paired with a broad perspective and overarching trends, weekly housing numbers can sharpen the keen observer’s competitive edge. As you look through this week’s most current real estate activity, keep an eye open for signs of job growth, changing interest rates and relevant policy initiatives.

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

  • New Listings increased 20.9% to 1,855
  • Pending Sales increased 24.1% to 1,313
  • Inventory decreased 25.9% to 13,866

For the month of April:

  • Median Sales Price increased 12.0% to $182,000
  • Days on Market decreased 28.1% to 97
  • Percent of Original List Price Received increased 2.7% to 95.9%
  • Months Supply of Inventory decreased 36.0% to 3.2

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

Weekly Market Report

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You’re busy – planes to catch, open homes to see and little league games to coach. But in less time than it takes to lint roll a favorite set of slacks, you can catch up on the most up-to-date and local housing market trends. Don’t clutter your brain with big data that has muddled together home sales from across the county. Get ahead of the curve by zeroing in on your region’s market and nothing else. Read on for the good stuff.

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

  • New Listings increased 25.1% to 1,858
  • Pending Sales increased 16.2% to 1,305
  • Inventory decreased 27.5% to 13,556

For the month of April:

  • Median Sales Price increased 12.0% to $182,000
  • Days on Market decreased 28.1% to 97
  • Percent of Original List Price Received increased 2.7% to 95.9%
  • Months Supply of Inventory decreased 36.0% to 3.2

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