Real Estate Update

Weekly Real Estate Update | Minneapolis–Saint Paul
March 26, 2012


National Association of Home Builders/Wells Fargo Housing Market Index (HMI) reached 28. To put that in perspective, it went from above 70 in 2005 to below 10 in 2009. The HMI has not seen 28 since June 2007. This and other landmark data points are coalescing to signal calmer waters ahead. That’s not to say you should expect double-digit annualized appreciation, but both buyers and sellers are displaying the sort of confidence that is fluttering through the rest of the economy.

In the Twin Cities region, for the week ending March 17:
• New Listings decreased 1.3% to 1,406
• Pending Sales increased 23.1% to 1,029
• Inventory decreased 27.5% to 17,088

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 35.2% to 4.7

As reported by the Minneapolis Area Association of Realtors.

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Home Prices Stabilize Amidst Other Improvements

Real Estate Update

Home Prices Stabilize Amidst Other Improvements

Minneapolis, Minnesota (March 2012) – Home buyers in the 13-county Twin Cities metropolitan area entered into 3,756 purchase agreements during February, a 34.2 percent increase over last year. Low-interest rates and affordable prices were likely the main draws. More people signed purchase agreements last month than during February 2006 and every February thereafter.

Motivated by less competition and an improving economic landscape, sellers were more active. There were 5,366 newly listed properties, up 1.1 percent from February 2011. The number of homes for sale continued to drop, down 27.2 percent from last year to 16,689 active listings – the lowest inventory reading for any month since 2003. Months supply of inventory was at a six-year low of
4.6 months.

“The mix of homes selling is slowly starting to change which has translated into the smallest price decline since October 2010,” said Cari Linn, President of the Minneapolis Area Association of REALTORS®. “Subsiding price declines are a sign of market rebalance.”

Traditional sales surged 36.2 percent, while foreclosure sales increased 8.5 percent. Both segments had nearly identical market shares, comprising 42.7 and 42.3 percent of overall sales, respectively. Short sales were up 36.3 percent to make up the remaining 15.0 percent of sales.

The seller side of the equation continues to improve. For the seventh consecutive month, sellers received more of their asking price than in the year prior. Sellers should take some comfort in the fact that homes are selling in 144 days compared to 159 last February. That marks the fifth consecutive month of year-over-year decrease in market times.

Those looking to sell their properties should be aware of distressed market activity. Homes in financial distress are exiting the marketplace faster than they are entering it, but they’re still a significant factor. The overall median sales price was down 1.4 percent from February 2011 to $138,000, marking the smallest decline in 16 months. Digging deeper, traditional prices fell 11.6 percent to $183,000; foreclosure prices fell 1.4 percent to $104,000; and short sale prices fell 17.1 percent to $116,000.

“Median sales price is an important market indicator, no doubt, but watching only price activity is short-sighted,” said Andy Fazendin, MAAR President-Elect. “Other indicators are offering consistent evidence of a market on the mend.”

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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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Minneapolis–St. Paul Real Estate Market Update

Real Estate Weekly Update
November 1, 2010

Pending Sales in the 13-county Twin Cities metro experienced its smallest decrease since the end of May. The 611 purchase agreements signed for the week ending October 23 were 34.0 percent fewer than the same week in 2009. While still in the red, it’s not to the extent we’ve seen the past few months.

Seller activity held fairly stable at 1,303 New Listings for the week. This made for an 8.9 percent dip from last year’s levels and was roughly on par with the 7.8 percent average decline over the past three months.

Inventory is still high. As of November 1, it stands at 25,706 Active Listings, an 11.5 percent jump since last year at this time. The pace of inventory activity should continue to decline as we step toward winter.

As reported by the Minneapolis Area Association of Realtors.

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Minneapolis—St. Paul Real Estate Market Update

Real Estate Weekly Update
September 13, 2010

The Twin Cities residential real estate market’s paralysis continues. New listings were down 12.8 percent compared to last year at this time for the week ending September 4, 2010. Even so, more properties came on the market this past week than the week ending August 28th—a time when the school year normally slows seller activity.

Pending Sales were up slightly from the previous four weeks but remain 35.9 percent behind where we were at this time in 2009. This has been the case all summer long.

Active Listings for Sale are now 8.9 percent ahead of last year. Percent of Original List Price Received at Sale leaned toward buyers last month. Good news for home hunters; even more challenges for those looking to sell.

Statistical information provided by the Minneapolis Area Association of Realtors

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Photo of the Day: Delightful Design

A Charming Entry

I love the conical turret entrance with arch-shaped door.
Note also the narrow slice of roof that curves down to the front
and creates a sense of enclosure.

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Minneapolis—St. Paul Real Estate Market Update

Real Estate Weekly Update
August 30, 2010

For twelve consecutive weeks now, the number of homes for sale in the Twin Cities housing market has been higher than it was a year ago. The gap between this year’s inventory and last year’s inventory at the same time period has been steadily growing.

The current inventory of homes for sale (27,784) is up 8.1 percent from this time in 2009. Inventory is not growing due to an influx of new sellers putting their homes on the market; It’s growing due to a drop in buyers who once were absorbing supply.

For the week ending August 21, there were 601 signed purchase agreements. This represents a decrease of 40.6 percent from a year ago. That’s the 15th consecutive week of significant declines compared to a year ago.

With supply growing and fewer buyers to purchase it, home sellers can expect a challenging fall market that will result in a downward pressure on home values. Motivated sellers who want to move quickly may have to pursue aggressive pricing to attract buyers.

As reported by the Minneapolis Area Association of Realtors
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