Real Estate Update

Weekly Real Estate Update
November 5, 2012

Over the course of the year, we’ve cleverly devised new tactics each week to communicate just how far the market has come. This week is no exception. Most level-headed housing advocates agree that lower residential vacancy rates are a good thing. Well, chalk one up for level-headed housing advocates, because Reuters just reported that the U.S. residential vacancy rate fell to 1.9 percent in the third quarter. That’s the lowest level in seven years. It’s just the latest installment of overwhelming bullish housing news.

In the Twin Cities region, for the week ending October 27:

• New Listings decreased 3.0% to 1,037
• Pending Sales increased 11.1% to 914
• Inventory decreased 28.8% to 15,700

For the month of September:

• Median Sales Price increased 12.7% to $174,625
• Days on Market decreased 28.5% to 101
• Percent of Original List Price Received increased 4.1% to 94.8%
• Months Supply of Inventory decreased 38.8% to 4.1

As reported by the Minneapolis Area Association of Realtors

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Ready to buy or sell a home? Call the sister team.
We’d love to help you move forward.

Ellen and Kate Walsh
Coldwell Banker Burnet
612.220.3304
emwalsh@cbburnet.com

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Real Estate Update

Weekly Real Estate Update
October 23, 2012

Housing pessimism is as out of fashion nowadays as bell bottoms and shoulder pads. Those who are still fishing for that elusive “market bottom” have likely missed it in most areas. The major story continues to be tightened inventory and high buyer turnout. Homes should be selling faster and for closer to list price – or even above in the hottest neighborhoods. Continue to monitor key differences between the foreclosure and traditional segments as well as variability between the single-family and condo markets.

In the Twin Cities region, for the week ending October 13:
• New Listings increased 7.3% to 1,252
• Pending Sales increased 26.7% to 954
• Inventory decreased 28.8% to 16,017

For the month of September:
• Median Sales Price increased 12.6% to $174,500
• Days on Market decreased 28.4% to 101
• Percent of Original List Price Received increased 4.0% to 94.8%
• Months Supply of Inventory decreased 39.6% to 4.1

As reported by the Minneapolis Area Association of Realtors

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Ready to buy or sell a home? Call the sister team.
We’d love to help you move forward.

Ellen and Kate Walsh
Coldwell Banker Burnet
612.220.3304
emwalsh@cbburnet.com

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Real Estate Update

Weekly Real Estate Update
October 1, 2012

With October here, 2012 has certainly flown by. The things to be watching for this fall are the same things you’ve likely been watching all year. Changes in sales levels, active listings, market times, seller concessions and, of course, home prices have taken center stage. To showcase just one, home prices may moderate on a month-to-month basis but should continue to demonstrate resiliency in a year-over-year sense. While the economy has been sending some mixed signals lately, one aspect of this recovery remains convincing: housing will be a net contributor.

In the Twin Cities region, for the week ending September 22:
• New Listings decreased 1.1% to 1,295
• Pending Sales increased 22.8% to 1,078
• Inventory decreased 29.4% to 16,428

For the month of August:
• Median Sales Price increased 14.8% to $178,000
• Days on Market decreased 23.9% to 107
• Percent of Original List Price Received increased 4.2% to 95.1%
• Months Supply of Inventory decreased 41.1% to 4.2

As reported by the Minneapolis Area Association of Realtors

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Ready to buy or sell a home? Call the sister team.
We’d love to help you move forward.

Ellen and Kate Walsh
Coldwell Banker Burnet
612.220.3304
emwalsh@cbburnet.com

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Real Estate Update

Weekly Real Estate Update
September 4, 2012

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

As reported by the Minneapolis Area Association of Realtors

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Real Estate Update

Weekly Real Estate Update
August 21, 2012

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 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 child into high school. There’s a lot of activity taking place as we move towards the fall season. The housing market continues to be active as well.

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

Statistics provided by the Minneapolis Area Association of Realtors

For additional market information, contact us:

Ellen Walsh
612.220.3304
emwalsh@cbburnet.com

Kate Walsh
612.220.3309
info@designhouse9.com

Coldwell Banker Burnet
Minneapolis Lakes Office–On the shore of Lake Calhoun
Minneapolis MN 55416

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Real Estate Update

Weekly Real Estate Update
August 14, 2012

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 drop off 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

As reported by the Minneapolis Area Association of Realtors

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Real Estate Update

Weekly Real Estate Update
July 24, 2012

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 As reported by the Minneapolis Area Association of Realtors. ### .

Real Estate Update

Weekly Real Estate Update
July 16, 2012

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.

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

As reported by the Minneapolis Area Association of Realtors

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Real Estate Update

Weekly Real Estate Update
July 9, 2012

Summer heat waves roll across the north land as election season also heats up. Meanwhile, as the mercury and partisan rhetoric both escalate, residential real estate continues to show signs consistent with market recovery. For the current round of numbers, both buyer and seller activity levels were higher than last year at this time. Buyers have been taking advantage of historic affordability levels for some time, but renewed seller confidence is a more recent development and some would even call it an encouraging omen, as long as supply levels don’t exceed a prior apex.

In the Twin Cities region, for the week ending June 30:
• New Listings increased 0.1% to 1,414
• Pending Sales increased 20.4% to 1,194
• Inventory decreased 31.0% to 17,417

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 95.0%
• Months Supply of Inventory decreased 44.7% to 4.4

As reported by the Minneapolis Area Association of Realtors.

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Real Estate Update

Weekly Real Estate Update
June 25, 2012

Market metrics are in the midst of seasonal peaks and valleys this time of year. Listings, sales and prices all tend to reach pinnacles on the historical trend line, while market times generally take a dip to annual lows. Summer is historically an exciting time for real estate. Between vacations to see family and friends and the crush of wedding weekends, Americans manage to find the time to buy and sell real estate. The last several years have been rough, no doubt, but an undeniable gleam has returned to the marketplace this year, and summer brings with it a certain extra swoon.

In the Twin Cities region, for the week ending June 16:
• New Listings decreased 3.7% to 1,476
• Pending Sales increased 19.8% to 1,173
• Inventory decreased 31.0% to 17,517

For the month of May:
• Median Sales Price increased 10.5% to $169,000
• Days on Market decreased 19.6% to 125
• Percent of Original List Price Received increased 3.8% to 94.6%
• Months Supply of Inventory decreased 43.9% to 4.6

As reported by the Minneapolis Area Association of Realtors.

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Real Estate Update

Weekly Real Estate Update
June 4, 2012

Although the latest jobs report was less than exciting for those waiting for economic recovery to cast a warming glow all across the land, the residential real estate market continued to jog along at a nice pace, as though earbuds were drowning out the din of negative energies trying to dissuade healthy activity. For the most recent week, buyer activity was higher than year-ago levels while listing activity registered lower. Keep watching inventory and sales activity throughout the summer to see if this runner’s high will continue into fall.

In the Twin Cities region, for the week ending May 26:
• New Listings decreased 8.5% to 1,387
• Pending Sales increased 19.2% to 1,231
• Inventory decreased 29.8% to 17,740

For the month of April:
• Median Sales Price increased 12.1% to $162,500
• Days on Market decreased 15.2% to 135
• Percent of Original List Price Received increased 3.7% to 93.4%
• Months Supply of Inventory decreased 41.7% to 4.8

As reported by the Minneapolis Area Association of Realtors.

Click on graph to view larger

Click on graph to view larger

Click on graph to view larger

For additional information on the market and for assistance buying and selling a home, contact us:

Ellen Walsh
612.220.3304
emwalsh@cbburnet.com

Kate Walsh
612.220.3309
info@designhouse9.com

Coldwell Banker Burnet
Minneapolis Lakes Office

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Has the Bottom of Real Estate Come and Gone?

Hunting for Market Bottom? You May Have Missed It

Minneapolis, Minnesota (May 10, 2012) – The momentum from March continued into April as the market showed further signs of strength and stabilization. Homes are selling faster, sellers are seeing a greater share of their asking price and prices continued to climb over year-ago levels. Driven by sub-4.0 percent interest rates and high affordability, buyers have been active in 2012.

The median sales price for the Twin Cities metro area for April 2012 was up 12.4 percent from last April to $163,000. That’s the largest jump since January 2004. Since median sales price can be manipulated by the mix of homes that happen to close in a given month, whether condos, foreclosures or new construction, the Minneapolis Area Association of REALTORS® (MAAR) has developed a new home price index through its 10K Research and Marketing division that will account for that changing mix of homes selling as well as for seasonality. The 10K Home Price Index is now part of MAAR’s Monthly Indicators, available at mplsrealtor.com.

“The index will provide a more accurate view of home value movement,” said Cari Linn, President of the Minneapolis Area Association of REALTORS®. “For example, traditional home sales now account for the majority of the market, which tends to drive up median and average prices since they tend to sell for more than foreclosure properties.”

Indeed, traditional sales were up 58.8 percent, while foreclosures fell 8.1 percent and short sales increased 13.8 percent. Distressed homes made up 34.0 percent of all new listings and 39.3 percent of all pending sales, the smallest shares since July 2008 and August 2008, respectively. Traditional prices fell 2.2 percent to $198,500; foreclosure prices jumped 15.9 percent to $119,900; short sale prices fell 4.4 percent to $129,000. Traditional sales made up 57.1 percent of all closings and sold roughly 50.0 percent more than foreclosures and 20.0 percent more than metro-wide prices, generating the strong gain in overall median sales price.

The number of homes for sale has dropped for 15 consecutive months, down 29.2 percent from last year to 17,312 active listings – the lowest inventory reading for any month since January 2004. Months supply of inventory plunged 44.0 percent to 4.6 months – the lowest reading for any month since August 2005.

On average, homes sold in 135 days, down 14.9 percent from last April. Sellers received an average of 93.3 percent of their list price, up from 90.1 percent last April. Cash buyers made up 20.7 percent of all closed sales, down from 24.8 percent at this time in 2011.

“We’re impressed with the accelerating improvements,” said Andy Fazendin, MAAR President-Elect. “High-quality, move-in-ready inventory is limited. Those waiting for falling prices will likely be disappointed.”

All information is according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc. MAAR is the leading regional advocate and provider of information services and research on the real estate industry for brokers, real estate professionals and the public. MAAR serves the Twin Cities 13-county metro area and western Wisconsin.

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Real Estate Update

Weekly Real Estate Update
May 14, 2012

If only there were a system of grand, colorful lights for tracking residential real estate. Green for rising market, yellow for a transitional market and red for declining market. Let’s see if we can try to determine today’s market without the ease of well-known signals. Prices are bottoming and starting to rise. Buyer activity is showing year-over-year gains. Homes are selling faster and closer to list price. Multiple offers are becoming commonplace. Inventory levels are leaning toward the seller. Green means go.

In the Twin Cities region, for the week ending May 5:

• New Listings decreased 6.6% to 1,643
• Pending Sales increased 41.9% to 1,232
• Inventory decreased 28.3% to 17,579

For the month of April:

• Median Sales Price increased 12.1% to $162,500
• Days on Market decreased 15.1% to 135
• Percent of Original List Price Received increased 3.6% to 93.4%
• Months Supply of Inventory decreased 43.1% to 4.7

As reported by the Minneapolis Area Association of Realtors.

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Real Estate Update

Weekly Real Estate Update
May 7, 2012

For Week Ending April 28, 2012
All comparisons are to 2011

Buyers don’t live in a spreadsheet. When buyers find a home they love, they are drawn to it like moths to light; they find themselves unable to ignore the emotional significance of the home by an excessively intellectual explanation.

There are generally fewer homes on the market, they’re selling more quickly, and the down trend in prices in most areas is evaporating. Dwindling inventories means there’s less competition and more pricing power for sellers, who are finally starting to be rewarded by strong buyer activity. Interest rates at 50-year lows doesn’t hurt either. Love is in the air and all around the housing market.

In the Twin Cities region, for the week ending April 28:
• New Listings decreased 14.9% to 1,475
• Pending Sales increased 21.4% to 1,187
• Inventory decreased 28.0% to 17,603

For the month of March:
• Median Sales Price increased 7.1% to $149,900
• Days on Market decreased 9.7% to 144
• Percent of Original List Price Received increased 3.8% to 92.1%
• Months Supply of Inventory decreased 37.2% to 4.8

As reported by the Minneapolis Area Association of Realtors.

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Real Estate Update

Weekly Real Estate Update
April 16, 2012

Market sentiment can become a self-fulfilling prophecy. Just as negative economic news sent a chill through the housing industry over the last several years, a newly confident consumer buying up excess inventory and further housing-related sundries helps stabilize and support home values. Some sellers are even starting to see rising prices. The numbers are beginning to reflect the fact that multiple offers on homes for sale are now more than anecdotal conversation between real estate professionals. For this week, new listings were down while purchase contracts were up compared to the same week in April 2011.

In the Twin Cities region, for the week ending April 7:

• New Listings decreased 19.0% to 1,411
• Pending Sales increased 15.5% to 1,036
• Inventory decreased 27.3% to 17,289

For the month of March:

• Median Sales Price increased 7.1% to $149,900
• Days on Market decreased 9.4% to 145
• Percent of Original List Price Received increased 3.8% to 92.1%
• Months Supply of Inventory decreased 38.5% to 4.7

As reported by the Minneapolis Area Association of Realtors.

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Home Prices Stabilize Amidst Other Improvements

Minneapolis, Minnesota (April 11, 2012) – March provided a critical data point on the road to recovery. For the first time since October 2010, the median sales price of Twin Cities homes was higher than a year ago. The 6.4 percent gain was the largest year-over-year median price increase since a tax-credit-driven April 2010. After accounting for the growing square footage of homes selling, price per square foot increased for the first time since June 2010.

 

Prices weren’t the only metric to show improvement in March. Pending home sales were up 20.4 percent and are already higher than any month in 2007, 2008 or 2011. Months supply of inventory fell nearly 40.0 percent to 4.6 months – the lowest reading for any month since January 2006. Compared to the year prior, sellers are seeing a greater share of their asking price in less time as competition and over saturation have both eased significantly.

A warm winter certainly helped boost buyer activity, but low interest rates, affordable prices and a sense of urgency caused by tightened inventories were also factors. The number of homes for sale continued to drop, down 27.5 percent from last year to 17,081 active listings – the lowest inventory reading for any month since January 2004.

“Don’t mistake price gains for a fully recovered market,” said Cari Linn, President of the Minneapolis Area Association of REALTORS®. “Supply is down, and the mix of homes selling is shifting toward traditional sales. We’ll accept that as progress and build upon it.”

Traditional sales surged 33.2 percent, while foreclosures slid 13.2 percent and short sales increased 5.0 percent. Distressed homes made up 34.6 percent of all new listings and 43.7 percent of all pending sales, the smallest shares since July 2008 and April 2010, respectively.

The overall median sales price was up 6.4 percent to $149,000. That reflects a shifting market share in terms of sales volumes and not price gains in the traditional, foreclosure and short sale segments. In fact, traditional prices fell 1.2 percent to $195,000; foreclosure prices fell 2.8 percent to $105,000; and short sale prices fell 3.8 percent to $128,950.

The seller side of the equation continues to improve. On average, homes tended to sell in 144 days compared to 160 last March. Sellers received an average of 92.1 percent of their asking price compared to 88.7 percent last March. That marks the sixth consecutive month of decreases in market times and the eighth consecutive month of increases in the ratio of sales price to list price. Seller confidence will play a key role in filling the supply pipeline moving forward.

“It’s looking increasingly likely the worst is behind us,” said Andy Fazendin, MAAR President-Elect. “We continue to see encouraging signals from the market that allow for an improving view on residential real estate in 2012.”

All information is according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc. MAAR is the leading regional advocate and provider of information services and research on the real estate industry for brokers, real estate professionals and the public. MAAR serves the Twin Cities 13-county metro area and western Wisconsin.

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Real Estate Update

Weekly Real Estate Update
April 9, 2012

The weekly scorecard showcases that home buyers were more active compared to the same week last year. Buyers have been taking advantage of an affordable market, but sellers in many areas have been lazing in the tall grass like lions as the herd moves past. Watch for a changing landscape this spring and summer. Even skeptical sellers are sensing a need to get back into the hunt.

In the Twin Cities region, for the week ending March 31:

• New Listings decreased 12.1% to 1,532
• Pending Sales increased 25.2% to 1,113
• Inventory decreased 27.2% to 17,274

For the month of March:

• Median Sales Price increased 6.4% to $149,000
• Days on Market decreased 10.0% to 144
• Percent of Original List Price Received increased 3.7% to 92.1%
• Months Supply of Inventory decreased 39.2% to 4.6

As reported by the Minneapolis Area Association of Realtors.

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Real Estate Update

Weekly Real Estate Update
April 2, 2012

The last time you were at the doctor, your vital signs were checked – heart rate, pulse, temperature and blood pressure. Progress was documented and valuable insights were gained, whether it was a routine visit or one of many checks during an extended hospital stay. The housing market has been in and out of intensive care for the past several years. Monitoring vitals matters. The pulse of today’s market indicates that we may be getting ready to leave the ICU. So if you could just please pull up your sleeve, let’s check your blood pressure.

In the Twin Cities region, for the week ending March 24:
• New Listings increased 2.2% to 1,414
• Pending Sales increased 30.2% to 1,052
• Inventory decreased 27.3% to 17,193

For the month of February:
• Median Sales Price decreased 1.4% to $138,000
• Days on Market decreased 9.0% to 145
• Percent of Original List Price Received increased 2.5% to 90.6%
• Months Supply of Inventory decreased 34.8% to 4.7

As reported by the Minneapolis Area Association of Realtors.

Click on chart to view larger size.

Click on chart to view larger size.

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For more information on the market and your real estate needs,
contact the Real Estate team of Kate and Ellen Walsh.

Ellen Walsh
emwalsh@cbburnet.com
612.220.3304

Kate Walsh
info@designhouse9.com
612.220.3309

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