Real Estate Update

Minneapolis–Saint Paul Real Estate Update
December 12, 2011


As another new year approaches, we find ourselves settling in for the holidays, which typically come with slowed real estate activity. In the first week of the full holiday shopping season, we saw sales increase. We’re talking about residential real estate, of course, although retail performed surprisingly well, too. Sellers listed fewer properties during the week, choosing instead to hunker down in their living rooms rich with the aromas of pine-scented candles and cinnamon cider sticks.

Year-over-year 3-month stats from November to now:

New Listings:
2011: 14,474
2010: 17,058

% change: -15.1%

Pending Sales:
2011: 10,269
2010: 7,847

% change: +30.9%

Click on above graph to enlarge

As reported by the Minneapolis Area Association of Realtors.

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Real Estate Update

Minneapolis and Saint Paul Real Estate Update
December 5, 2011


Tryptophan and chatty in-laws were not able to curb the appetite of local
home buyers, as purchase activity easily gobbled up last year’s levels. Sellers
were apparently stuffed and lethargic, as they brought fewer new properties
onto the market than during the same holiday week last year. As we approach
the slowest time of year for residential activity, expect transacted dollar
volumes and sales counts to weaken from the spring and summer of this
year. Keep watching inventory declines; they could have a measurable impact
on the Spring 2012 market.

In the Twin Cities region, for the week ending November 26:
• New Listings decreased 9.1% to 601
• Pending Sales increased 46.8% to 574
• Inventory decreased 22.8% to 20,318

For the month of October:
• Median Sales Price decreased 9.6% to $154,500
• Days on Market decreased 0.5% to 134
• Percent of Original List Price Received increased 0.9% to 91.2%
• Months Supply of Inventory decreased 27.6% to 6.3

Click on either of the charts below to enlarge.


As reported by the Minneapolis Area Association of Realtors.

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Real Estate Update

Minneapolis and Saint Paul Real Estate Update
November 28, 2011


Buyers continued to exceed their November 2010 purchase volumes. Sellers weren’t so keen, posting fewer newly listed properties on the MLS than at this time last year. With roughly 87.5 percent of 2011 data in the books, and with 2012 just around the corner, the clever observers will start snapping sneak peeks of annual statistics and watching Year-to-Date numbers a little closer than usual. Just how did 2011 rank in real estate sales compared with prior years? We’ll know soon enough. In the meantime, here are the latest statistics.

In the Twin Cities region, for the week ending November 19:

• New Listings decreased 18.6% to 938
• Pending Sales increased 30.5% to 805
• Inventory decreased 21.8% to 20,796

For the month of October:

• Median Sales Price decreased 9.6% to $154,500
• Days on Market decreased 0.6% to 134
• Percent of Original List Price Received increased 0.9% to 91.2%
• Months Supply of Inventory decreased 27.8% to 6.3

Statistics reported by the Minneapolis Area Association of Realtors.

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Real Estate Overview

Housing Supply Overview
October 2011

What’s driving home purchases nowadays? Record low mortgage rates,
affordable prices and plenty of options to choose from. For the
12-month period spanning November 2010 through October 2011,
Pending Sales in the Twin Cities region were up 8.5 percent overall. The
price range with the largest gain in sales was the $120,000 and under
range, where they increased 50.0 percent.

The overall Median Sales Price was down 8.9 percent to $154,900. The
property type with the smallest price decline was the Single-Family
segment, where prices decreased 8.1 percent to $170,000. The price
range that tended to sell the quickest was the $190,001 to $250,000 range
at 138 days; the price range that tended to sell the slowest was the
$1,000,001 and above range at 253 days.

Market-wide, inventory levels were down 22.4 percent. The property type
that lost the least inventory was the Single-Family segment, where it
decreased 19.5 percent. That amounts to 6.3 months supply for Single-
Family homes and 5.2 months supply for Townhomes and Twinhomes.

Click on graph to enlarge.


As reported by the Minneapolis Area Association of Realtors
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Real Estate Update

Weekly Real Estate Update
November 8, 2011

Local home buyers exceeded their 2010 purchase volumes for the week. Sellers introduced fewer new listings to the marketplace than last year. It’s important to watch the inventory needle as it can illustrate the overall market balance. Speaking of which, now is a great time to keep an eye on months supply and seller concessions. These metrics can often serve as leading indicators of a changing landscape.

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

• New Listings decreased 14.5% to 1,070
• Pending Sales increased 40.3% to 870
• Inventory decreased 21.6% to 21,930

For the month of September:

• Median Sales Price decreased 7.2% to $155,000
• Days on Market increased 5.6% to 137
• Percent of Original List Price Received increased to 91.1%
• Months Supply of Inventory decreased 21.7% to 6.8

As reported by the Minneapolis Area Association of Realtors.

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Real Estate Update

Weekly Real Estate Update
October 17, 2011

It seems like every passing week brings not one but two new record declines: inventory levels and mortgage rates. The week ending October 8 was certainly no exception. The number of active listings on the market fell 21.0 percent to 22,434 units. Mortgage rates fell below 4.0 percent for the first time ever. The last time inventory was that low? February 2009.

It’s partly due to sellers not contributing many properties to the bin and partly due to buyers doing their part to absorb existing supply. New listings were down 13.0 percent to 1,262 for the week, and pending sales were up 48.3 percent to 851 purchase agreements signed.

The keen observers noticed that September’s preliminary monthly numbers came out last week. This round, those preliminary figures were revised slightly as new status changes filtered in. A few noteworthy observations:

• Prices posted the smallest year-over-year decline in eight months.
• Days on market posted its smallest increase in nine months.
• Sellers received more of their asking price for the second month in a row.
• Absorption rates posted their third consecutive month of improvements.

As reported by the Minneapolis Area Association of Realtors.

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Real Estate Update

Weekly Real Estate Update
October 3, 2011

New Listings: Sellers posted their smallest decline in newly listed homes in three months. The 1,320 new properties were 4.8 percent fewer than the same week last year. What’s causing the shift? New listings dropped at this time last year while current levels held fairly even with last week.

Active Supply: The 22.6 percent year-over-year drop in inventory levels broke last week’s all-time record. Those shopping for homes will choose from 23,351 properties as opposed to the 30,178 properties at this time last year.

Buyer Demand: The 2010 and 2011 sales trend lines continue to mimic one another, with one important exception. This year’s trend line is, on average, 260 sales greater than last year’s levels over the past few months.

The Verdict: Falling supply and relatively strong sales volumes should theoretically bolster prices. Again, there’s a notable exception: economic uncertainty and squeezed household budgets are all the motivation many buyers need to hunt for bargains – including lower-priced traditional properties as well as great opportunities in the lender-mediated housing segment.

As reported by the Minneapolis Area Association of Realtors.

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Real Estate Update

Real Estate Weekly Update
August 15, 2011

While day traders continue along their roller coaster ride, 997 Twin Cities home buyers made the smart investment in real estate. That’s 40 percent more than those who made the investment last year. Purchase demand is coming back in line with historical trends.

Sellers were another story. There were 1,433 new listings, 18.7 percent fewer than this time last year. Seller activity has also likely reached its seasonal peak but remains below historical levels for this time of year. Consequently, buyers have effectively absorbed existing supply. That’s a good thing. The number of active listings is down 18.5 percent to 24,362 available homes for sale.

With strong sales and less new supply entering the market, the balance is shifting toward neutral. Both the prevalence and magnitude of seller concessions have stabilized, and absorption rates improved in July after twelve months of sizable increases. Though still slightly lower than last summer, prices have increased nearly 18 percent from March to June of this year.

As reported by the Minneapolis Area Association of Realtors.

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The Peacefulness of Swimming at Night

Photo of the Day
August 12, 2011

Anyone care for a dip in the pool?

There’s something quite relaxing about swimming in the evening. There is generally less visual and auditory noise, and fewer people. It can be wonderfully romantic with the right person. If you are somewhere without a lot of city lights, you can float on your back and look up at the stars and the moon. Hmm, the pool beckons. Time to go.

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Come see this pool and
a fabulous two bedroom/two bath condo at Seven Oak Condominium.
Click on link below for more details.

3412 Oak Ridge Road, Unit 314–Minnetonka, MN

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Real Estate Update

Real Estate Weekly Update
August 8, 2011

Despite the anxiety on Wall Street, home buyers on Main Street continued along their merry way. Twin Citizens entered into 1,029 purchase agreements, up 49.1 percent from the 690 seen during the same week in 2010. Sellers, conversely, introduced only 1,323 new properties to the market for a 15.8 percent decline from last year.

For buyers, that marks 12 consecutive weeks of double-digit increases in activity. For sellers, it marks eight consecutive weeks of declines in activity. Relatively strong sales coupled with subdued new listings has drawn down the inventory of actively marketed properties to 24,734. That’s a 17.9 percent decrease from last year at this time, the largest decline since November 2008.

Competitive pricing, low-interest rates and high affordability continue to support a favorable purchase environment for buyers; while strong sales and declining supply should eventually translate into fewer and less dramatic seller concessions. These trends will bring a greater sense of balance and normalcy to the marketplace.

Stats provided by the Minneapolis Area Association of Realtors.

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3412 Oak Ridge Road, Unit #314 – Minnetonka Condo

Real Estate for Sale

West-Facing, Two-Bedroom Condo

List price: $89,000
Sale price: $85,000

This property is now sold.
Feel free to contact us for information regarding additional
condos for sale at Seven Oak Condominium.

Absolutely beautiful unit with more than the usual amenities! Best in this price range in Minnetonka! Light-filled rooms with great entertaining spaces, owners’ suite, formal dining plus eat-in kitchen, and two garage stalls! The main bedroom has a dressing area with two closets, both with custom organizers. The 2nd bedroom/den has built-in shelving and TV cabinet on one side of the closet.

The Association amenities include a penthouse party room, library and community space, exercise room, heated outdoor pool, and basic cable TV services. The monthly association fee covers everything except phone service and electric. Room dimensions are listed near the end of this post, just past the photos below.

Living room with view to dining room.
Living room with custom cabinetry. Foyer is in background.
Spacious dining room with attractive fixture and three windows!
Kitchen with view to dining room.
Eat-in area of kitchen with updated light fixture. Kitchen also has cable TV wiring!
Owners' suite with sliding doors that open to the screened porch.
Closet organizers in dressing area of owners' suite.
Den or 2nd bedroom with doors that open to the porch.
Organizing system in closet provides space for your TV, books, photos, etc.
Large foyer with laminate flooring, full mirror and three closets.
Your view from the porch.
Back of building and pool area.
Relax at the heated pool!
North Cedar Lake Trail

This condo is conveniently located near the bus line and walking/biking paths.

Approximate room dimensions:

Living Room: 23 x 13
Dining Room: 12 x 10
Kitchen: 10 x 09
Informal Dining: 09 x 09
Bedroom: 15 x 13
Bedroom/Den: 12 x 12
Screened Porch: 11 x 05
Foyer: 13 x 05

Transit Service Near 3412 Oak Ridge Road
Hennepin County Bike Map

Ridgedale Shopping Center

Map of 3412 Oak Ridge Road

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Thinking of selling? Let the sister team of Ellen and Kate Walsh
show you a personalized marketing plan to sell your home!

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For more information about this condo or selling your home, please contact us:

Ellen Walsh
612.220.3304
emwalsh@cbburnet.com

Kate Walsh
612.220.3309
info@designhouse9.com

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Real Estate Update

Real Estate Weekly Update
August 1, 2011

For the week ending July 23, Twin Cities home-buying activity increased 54.3 percent while home-listing activity declined 13.2 percent compared to the same week in 2010. Buyers entered into 1,040 purchase agreements while sellers brought 1,380 new properties onto the market.

Sales are up, listings are down. We’ve heard it all summer. What else is new? Well, inventory levels are down 17.0 percent from 2010, which is the largest decline in 80 weeks or since January 2010. Buyers now have 24,897 properties from which to choose.

Let’s visit some monthly numbers as well. The average amount that sellers receive on their asking price declined 2.1 percent in June to 91.4. Market times were up 17.7 percent to 140 days, prices were down 9.3 percent to $165,000. Each decrease or increase was the smallest in several months. Meanwhile, months supply of inventory shrunk 0.1 percent to 8.1, the first small yet measurable decline in 12 months.

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Real Estate Update

Real Estate Weekly Update
July 18, 2011

Home sales in the Twin Cities housing market continue to show strong year-over-year growth, but we must continue to point out that this is mostly due to how extraordinarily quiet last year was at this time following the expiration of the federal home buyer tax credit.

For the week ending July 9, there were 788 pending sales, an increase of 40.2 percent from a year ago. The amount of signed purchase agreements seen in recent weeks is similar to the activity for the same weeks in the summer of 2008.

The good news is that fewer homes are being listed, which is helping to dampen any potential for an oversupply problem. Over the last three months, there have been roughly 1,400 fewer new listings than during the same period in 2010, and the inventory of available homes for sale is down 16.1 percent from this time last year.

As always, balance between buyers and sellers plus a healthy, sustainable market is the ultimate goal.

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June 2011

When looking at where the market may be heading, local data offers a more accurate and reliable picture than national headlines. For the 12-month period spanning July 2010 through June 2011, Pending Sales in the Twin Cities region were down 14.6 percent from the same period a year prior. However, the largest gain occurred in the $1,000,001 and above range, where they increased 12.2 percent to 286 units. The overall Median Sales Price was down 6.0 percent to $159,800.

However, the property type with the smallest price decline was the Single-Family segment, where prices decreased 5.4 percent to $175,000. The price range that tended to sell the quickest was the $120,000 and under range at 135 days; the price range that tended to sell the slowest was the $1,000,001 and above range at 241 days.

Market-wide, inventory levels were down 15.9 percent. The property type that lost the least inventory was the Single-Family segment, where it decreased 14.1 percent. The price range in which supply grew the most relative to demand was the $190,001 to $250,000 range, where months supply increased 9.1 percent to 8.4 months.

Contact us for additional charts and information on the market.

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Get the latest housing market statistics for your neighborhood or area:

The 200+ / Local market updates for more than 200 Twin Cities communities.

Statistics provided by the Minneapolis Area Association of Realtors.

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Kate Walsh, REALTOR
612.220.3309
info@designhouse9.com

Ellen Walsh, REALTOR
612.220.3304
emwalsh@cbburnet.com

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Real Estate Update

Real Estate Weekly Update
July 11, 2011

For the week ending July 2, there were 1,057 purchase agreements, a 58.2 percent increase over the 668 seen during the same week last year.

Let’s sprinkle in some context. Over the past 10 weeks in the Twin Cities metro area, pending sales have increased slightly from 986 to 1,057. Over the same 10 weeks in 2010, pending sales plunged from a credit-inspired 1,505 to an unimpressive 668. The resulting year-over-year comparisons? Three consecutive weeks of 50.0 percent or greater gains and eight consecutive weeks of double-digit gains in buyer activity.

On the seller side, activity remains comparable with 2010 levels. The 1,396 new properties added to the market were only 0.7 percent under year-ago levels. Strong sales gains coupled with stagnant listing activity is dramatically drawing down inventory levels.

There are currently 25,613 homes being actively marketed in NorthstarMLS. That’s down 15.6 percent from the 30,072 seen at this time last year, which is the largest inventory decline since January 2010.

As reported by the Minneapolis Area Association of Realtors.

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Real Estate Update

Weekly Real Estate Update
July 5, 2011

The week ending June 18, 2011 marked an important milestone for the Twin Cities housing market. More buyers entered into purchase agreements that week than during any non-tax credit year since the peak bubble year of 2006. That is to say the 1,076 signed contracts outpaced all of 2007 and all of 2008. The week ending June 25th enjoyed a 52.2 percent increase over the same sluggish, post-credit week in 2010 to reach 1,012.

New listings fell below year-ago levels for the third straight week. The number of active properties for sale dropped 14.6 percent to 25,500, the largest decrease in 73 weeks or since January, 2010.

As reported by the Minneapolis Area Association of Realtors.

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Real Estate Update

Real Estate Weekly Update
June 20, 2011

Pending sales in the 13-county Twin Cities were up 33.7 percent compared to the same week during the post-credit cool-down of 2010. In total, 901 home buyers entered into purchase contracts. This marks the fifth consecutive week of double-digit year-over-year gains in pending sales activity. The last time we could proudly display that badge was for the week ending November 7, 2009.

Seller activity wasn’t quite as robust. New listings were down 9.1 percent from 2010 to 1,572 new properties. Increased sales activity in conjunction with stable or falling listing activity should be met with continued market correction, including faster absorption rates, quicker market times and fewer seller concessions.

Inventory levels have begun to round off their seasonal peak, posting their first week-to-week decline in 18 weeks. The 24,078 active listings currently for sale represent 11.6 percent fewer than the same time last year.

Moral of the story: with every new week of truly comparable, unbiased data, our perception of the market gets more and more clear. Though we still have a ways to go, we like what we’re seeing.

As reported by the Minneapolis Area Association of Realtors.

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Real Estate Update

Real Estate Weekly Update
June 13, 2011

For the week ending June 4, both buyer and seller activity continued to outpace year-ago levels in the Twin Cities. New listings were up 10.6 percent over the same week in 2010, and pending sales were up an encouraging 34.7 percent. That marks the fifth consecutive week of year-over-year gains in new listings and the fourth consecutive week of year-over-year gains in pending sales.

Those are refreshing market signals that allow for some cautious optimism, yet we must also posit that the changing story has more to do with last year than this year. Once the credit expired in 2010, sales and listing activity fell rather sharply. For example, sales volumes went from nearly 1,500 during the final week of April 2010 to 600 four weeks later.

The overall number of active listings for sale was down 10.7 percent (to 24,097 units). After six straight weeks of decelerating inventory declines, the year-over-year decreases have started to grow again. The conclusion to this week’s story: There’s change…and then there’s the rate of change.

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Sales Up, Foreclosure Rate Drops as Distressed Segment Leans Toward Recovery

PS-May_2009-2010-2011

Pending sales for May 2011 in the 13-county Twin Cities metropolitan area were up 13.2 percent over last year’s post-tax credit market. The 4,428 signed contracts was the second year-over-year increase in the past 13 months.

Sellers introduced 7,021 new properties to the market, a 10.8 percent increase from the year prior. Inventory shrunk 11.8 percent to 25,636 units—the lowest May inventory count since 2005. The overall median sales price declined 12.6% to $152,950 as value-minded consumers continued to shop for bargains.

Prices and sales varied significantly by market segment. Traditional (non-distressed) prices were up 1.4 percent to $200,700. Foreclosure prices were down 16.4 percent to $104,450, and short sale prices were down 5.6 percent to $135,000. The foreclosure rate fell to 31.9 percent in May while the distressed sales rate—which includes foreclosures and short sales—fell to 41.8 percent from a rate of 55.5 percent in January 2011. Traditional pending sales were up 12.1 percent, while foreclosure pending sales increased 67.0 percent and short sales were up 25.4 percent.

Distressed properties made up only 29.8 percent of all new listings—the lowest level since April 2010. The fact that comparatively more homes in financial distress are selling off the market than are entering the market is a positive sign.
On average, it now takes 148 days for a home to sell, marking three consecutive months of declines. Months supply of inventory, now at 8.5 months, is down from nearly 12.0 months during the summer of 2008.

For the first time in years, there is statistical proof of change in the local housing market not associated with temporary governmental incentives. This is welcome news for real estate professionals and consumers alike. It has been made abundantly clear that housing is a definitive driver of the economy at large.

As reported by the Minneapolis Area Association of Realtors.

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Get the latest housing market statistics for your neighborhood or area:
The 200+ / Local Market Updates for More Than 200 Twin Cities Communities

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Real Estate Update

Real Estate Weekly Update
Minneapolis–St. Paul
June 6, 2011

Buyer activity in the Twin Cities metro area increased a colossal 59.2 percent over last year, the strongest year-over-year gain since the week ending October 3, 2009. That’s a win any way you look at it, especially after 52 of the past 53 weeks showed year-over-year declines in buyer activity.

The post-tax credit drop-off seen at this time last year is driving this shift while current purchase levels have been on a modest but steady seasonal uptick. So far, sales levels are on track with 2007 and 2008 trends.

On the seller side, 1,523 new listings were introduced, or 3.3 percent more than the same week in 2010. Overall, we’ve seen four consecutive weeks of gains in listing activity and three consecutive weeks of gains in buyer activity.

Inventory levels are preparing to round off their seasonal peaks. The 23,920 Active Listings for Sale are currently 10.6 percent below year-ago levels. That marks the 17th consecutive week of declines, a phenomenon not seen since spring 2010.

As reported by the Minneapolis Area Association of Realtors.

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