We are converging upon an interesting wait-and-see season in residential real estate. All year long, we have witnessed some rather positive year-over-year decreases in inventory numbers and increases in sales, percent of original list price received at sale and median sales price. After many years of struggling to tread water – and, indeed, often failing to do so – there is hope. With quieter autumnal and winter months looming, we will be giving extra scrutiny to the trend lines in the weeks to come.
In the Twin Cities region, for the week ending August 25:
- New Listings increased 1.3% to 1,282
- Pending Sales increased 19.4% to 1,027
- Inventory decreased 29.9% to 16,785
For the month of July:
- Median Sales Price increased 13.3% to $178,500
- Days on Market decreased 27.8% to 105
- Percent of Original List Price Received increased 3.6% to 95.0%
- Months Supply of Inventory decreased 42.1% to 4.4
Weekly Market Report
Where residential real estate statistics are concerned, observers should be watching for overarching, macro-level trends rather than any one volatile, outlying week or month’s worth of data. Thinking in a big-picture manner is beneficial in numerous ways. Consider this: Despite media coverage of dreaded shadow foreclosure inventory or a new rush to rent by former owners, our nation’s homeownership rate has fallen no more than 3.0 percent from its peak in 2004. The figure crested around 69.0 percent and now lies just above 66.0 percent. Here are some local numbers to learn and share.
In the Twin Cities region, for the week ending August 18:
- New Listings decreased 3.5% to 1,286
- Pending Sales increased 25.2% to 1,118
- Inventory decreased 29.8% to 16,878
For the month of July:
- Median Sales Price increased 13.6% to $178,900
- Days on Market decreased 27.8% to 105
- Percent of Original List Price Received increased 3.6% to 95.0%
- Months Supply of Inventory decreased 42.5% to 4.4
Weekly Market Report
Do you hear that? It’s the sound of carts shifting through the back-to-school aisles, filling quickly with notebooks and pencils and glue. It’s the sound of teenagers shuffling through dorms and down storied lanes on their first college orientation. It’s the sound of young professionals readying themselves for their first big job, freshly shorn and tailored. It’s the sound of a family preparing for the leap from the overcrowded apartment to the “starter” home that will see their first into high school. The end of summer sure can seem an awful lot like spring. Let’s see if the housing market says the same.
In the Twin Cities region, for the week ending August 11:
- New Listings increased 2.0% to 1,387
- Pending Sales increased 31.2% to 1,149
- Inventory decreased 29.6% to 16,982
For the month of July:
- Median Sales Price increased 13.7% to $179,000
- Days on Market decreased 27.8% to 106
- Percent of Original List Price Received increased 3.6% to 95.0%
- Months Supply of Inventory decreased 42.8% to 4.3
Monthly Skinny Video
Weekly Market Report
Let’s admit it: It’s been nice to have a year of positive headlines in the residential real estate industry. There have been more sales for more money in most markets across the country, and the foreclosure situation, although not entirely in the rearview mirror, has abated. We’re now entering the months of 2012 that should offer a true test of the lasting power of this buyer-seller tryst. A dropoff in buyer and seller activity might be expected after so many months of bliss, but the feeling remains that the market will survive beyond the honeymoon phase.
In the Twin Cities region, for the week ending August 4:
- New Listings decreased 0.1% to 1,433
- Pending Sales increased 20.4% to 1,129
- Inventory decreased 29.6% to 17,085
For the month of July:
- Median Sales Price increased 14.2% to $179,900
- Days on Market decreased 27.8% to 105
- Percent of Original List Price Received increased 3.6% to 95.0%
- Months Supply of Inventory decreased 43.4% to 4.3
Weekly Market Report
For decades now, the real estate industry has been both humbled and invigorated by the strong and direct relationship between the labor and housing markets. As goes the economy, seemingly so goes housing. That relationship was especially clear after the 2007 recession. The economy added 163,000 jobs in July, the highest figure since February. Our economy is growing, but not as quickly as many would like. Meanwhile, inventory drops and surging buyer demand from renters and first-timers are anchoring home prices and giving sellers more power than they’ve had in years.
In the Twin Cities region, for the week ending July 28:
- New Listings increased 8.3% to 1,430
- Pending Sales increased 20.9% to 1,149
- Inventory decreased 30.5% to 17,103
For the month of June:
- Median Sales Price increased 10.2% to $178,600
- Days on Market decreased 22.0% to 113
- Percent of Original List Price Received increased 4.1% to 95.1%
- Months Supply of Inventory decreased 42.6% to 4.6
July Monthly Skinny Video
Weekly Market Report
With the Olympics in full swing, many are noting that housing has already medaled in several arenas. Sellers waiting for firmer prices should take a fresh look at the data. Buyers nervous about a declining market should do the same. Key changes continue to take place that set the stage for a more meaningful recovery. And you thought interest rates couldn’t get any lower? Mortgage rates hit a fresh record low last week, scraping in at 3.65 percent on a 30-year fixed. That’s cheap money, if ever there were such a thing.
In the Twin Cities region, for the week ending July 21:
- New Listings increased 1.2% to 1,382
- Pending Sales increased 22.7% to 1,145
- Inventory decreased 30.7% to 17,174
For the month of June:
- Median Sales Price increased 10.3% to $178,750
- Days on Market decreased 22.0% to 113
- Percent of Original List Price Received increased 4.0% to 95.1%
- Months Supply of Inventory decreased 43.0% to 4.5
Weekly Market Report
It’s been a relatively pleasant year for the business of residential real estate. Case in point, the June 2012 NAHB/Wells Fargo Housing Market Index (HMI) rose to its highest level since May 2007. And for the first time since 2005, housing is on track for being a net positive contributor to national GDP in 2012. Speaking on behalf of America, it’s about time. Throw in some real price gains, and you can expect holdout buyers to be less afraid of buying and sellers to be less afraid of listing.
In the Twin Cities region, for the week ending July 14:
- New Listings increased 6.2% to 1,536
- Pending Sales increased 13.4% to 1,125
- Inventory decreased 30.7% to 17,188
For the month of June:
- Median Sales Price increased 10.4% to $179,000
- Days on Market decreased 21.9% to 113
- Percent of Original List Price Received increased 4.1% to 95.1%
- Months Supply of Inventory decreased 43.3% to 4.5
Weekly Market Report
With the second quarter now in the books, seasonal peaks and valleys should start to become apparent. Even if activity begins to slow for the remainder of 2012, gains are still likely when compared to the same time last year. Housing demand has been strong, supply levels have been falling and prices are turning a corner in many local markets. Keep a watchful eye toward market times, percent of list price received at sale and months of supply. Percent of new listings and closed sales that are in foreclosure or short sale status also serve as market indicators.
In the Twin Cities region, for the week ending July 7:
- New Listings decreased 21.9% to 970
- Pending Sales increased 24.6% to 892
- Inventory decreased 30.8% to 17,134
For the month of June:
- Median Sales Price increased 10.4% to $179,000
- Days on Market decreased 22.0% to 113
- Percent of Original List Price Received increased 4.0% to 95.1%
- Months Supply of Inventory decreased 44.0% to 4.5