Minneapolis–St. Paul Real Estate Market Update

Real Estate Weekly Update
April 25, 2011

New Listings for the week ending April 16 were down 21.5 percent from the same week in 2010 to 1,846 properties. The 3-month average is down 26.4 percent. It appears that year-over-year declines in listing activity peaked around the end of March when motivated sellers were eager for buyers to consider their properties during the run-up to the end of last year’s tax credit deadline.

Pending Sales, too, predictably fell short of April 2010’s credit-inspired five-year high-water mark. The 898 purchase agreements signed were 18.6 percent fewer than last year. That’s on-par with the 17.6 percent 3-month average decline. Purchase demand is currently the highest it’s been since the week ending May 8, 2010. Sales activity in 2010 peaked during the week that ended April 25 and then fell sharply, so we can expect a very different story in two weeks.

Inventory plunged by 15.4 percent from the same week in 2010. It’s worth noting that the number of active listings for sale ballooned at this time last year as sellers moved to take advantage of the increased buying activity. Notwithstanding, we haven’t seen declines of this magnitude in nearly 15 months. It’s a trend that will mean fewer options for buyers as well as improved market balance.

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Minneapolis–St. Paul Real Estate Market Update

Real Estate Weekly Update
April 18, 2011

For the week ending April 9, sellers introduced 1,770 New Listings to the Twin Cities housing market. That’s down an even 30.0 percent from the same week in 2010 when motivated sellers rightfully decided it was time to sell.

Current buyer activity simply cannot compete with an elevated 2010 incentive market. Pending Sales were down 22.7 percent from the same week last year to 838 contracts written. Analyzing a wider time frame provides perspective on the theatrical plunge. Buyer activity was down 16.7 percent on average over the past three months. Comparing non-incentive markets to non-incentive markets also tells a more realistic story. Buyer activity was down only 2.3 percent compared to the same week in 2008.

The gap between this year’s and last year’s Active Listings for Sale has been growing for 10 straight weeks. There is also a pattern with year-over-year inventory levels, which are down 14.7 percent from 2010, 12.3 percent from 2009 and 28.3 percent from 2008. Those shopping for a home now have 22,869 options or about 27 active listings per purchase agreement signed for the week.

Statistics provided by the Minneapolis Area Association of Realtors.

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Current Trends and Projections Video

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How Foreclosure Activity Affects Prices and Inventory
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Pending Sales Comparison

Pending sales in the 13-county Twin Cities metropolitan area decreased 17.6 percent from March 2010 to 4,162 purchase agreements signed. Sellers introduced 6,977 new properties to the market, which was 30.2 percent fewer than the year prior. Inventory levels shrunk by 4.5 percent to 24,112 units—the lowest March inventory count since 2005. This trend should help stabilize prices and restore balance to the market.

Market conditions were particularly strong at this time last year due to the 2010 tax credit,thus making 2009 and 2008 more reliable comparison years. Pending sales were down a less dramatic 5.6 percent from March 2009 and they were actually up 14.6 percent over March 2008. Closed sales were down 3.5 percent from March 2010 but were up 2.7 percent over March 2009 and up 17.4 percent over March 2008.

Market activity can vary greatly from one segment to the next. Although overall purchase activity was down 17.6 percent, the foreclosure segment saw a 31.3 percent jump in pending sales and a 29.9 percent jump in closed sales. Foreclosure prices decreased 11.0 percent to $105,000; short sale prices decreased 6.9 percent to $134,950; and traditional prices decreased 3.5 percent to $192,000. While the bargain status of lender-mediated homes unquestionably helped their popularity surge among consumers, that same popularity pushed overall prices down 15.2 percent to $140,000.

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Have real estate questions? Call or write us.

Ellen Walsh
612-220-3304
emwalsh@cbburnet.com

Kate Walsh
612-220-3309
info@designhouse9.com

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Housing Supply Overview: March 2011


Examining market recovery requires delving in to the details. For the 12-month period spanning April 2010 through March 2011, Pending Sales in the Twin Cities region were down 20.4 percent from the same period one year prior. The largest gain occurred in the $1,000,001 and above range, where they increased 19.8 percent to 290 units.

Motivated sellers are watching market times closely these days. The segment with the largest increase in market times was the $1,000,001 and above range, where they increased 14.7 percent to 234 days. The segment that tended to sell the quickest was the $120,000 and under range at 123 days; the segment that tended to sell the slowest was the $1,000,001 and above range at 234 days.

Prices were down 1.2 percent across the board. Single-Family properties saw the largest price gain, where the Median Sales Price increased 0.6 percent to $182,000. Meanwhile, the property type with the strongest sales was Condos, where inventory levels have decreased 12.8 percent. Single-Family inventory levels, by contrast, have decreased 1.9 percent.

Click on the above chart to enlarge it.

Statistics provided 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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Minneapolis–St. Paul Real Estate Market Update

Real Estate Market Update
April 11, 2011

Daylight hours are increasing but contrary to seasonal norms, the number of homes for sale continues to remain about the same. There are now 22,449 active listings in the Twin Cities, 14.4 percent fewer than last year. Nine consecutive weeks of year-over-year inventory decline bring a number of implications.

On the good side, sellers have fewer properties to compete with. This should quicken market times and increase seller leverage at the closing table. Improving demand with unchanging supply has the tendency to lift prices. On the not-so-good side, buyers have fewer options than in recent years. In light of skyrocketing affordability, historically low interest rates, foreclosure bargains, favorable negotiations and low prices, buyers are still proving to be either very patient, highly cost-conscious or both. Even so, purchase demand has more or less kept pace with non-incentivized 2009 levels.

New Listings decreased for the fourteenth consecutive week, dropping 19.2 percent to 1,738 properties. Pending Sales hit their highest weekly total this year but still trail last year’s pace, down 25.1 percent year-over-year to 840 purchase agreements signed.

Statistics provided 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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Minneapolis–St. Paul Real Estate Market Update

Real Estate Weekly Update
April 4, 2011

For the week ending March 26, Pending Sales in the Twin Cities metro posted a 27.2 percent decrease from the same week last year to 764 purchase agreements. Sellers listed 1,402 or 37.4 percent fewer homes than they did during the same week in 2010. The repetitive mantra says: “Don’t put too much stock in these year-over-year comparisons since we’re up against an elevated baseline due to the 2010 home buyer tax credit.”

In the meantime, the gap between this year’s and last year’s inventory levels continues to grow. The current number of Active Listings for Sale looks and feels 12.3 percent leaner than last year at this time. Buyers currently have 22,158 properties to choose from, which is the lowest total at this point in the year since 2005. The spring jeans we’ve been wearing for the last several seasons now look downright baggy.

As reported by the Minneapolis Area Association of Realtors.

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Minneapolis–St. Paul Real Estate Market Update

Real Estate Weekly Update
March 28, 2011

The week ending March 19 showed a 16.6 percent decline in Pending Sales from the same week last year and a 36.9 percent decline in New Listings.

With a little imagination, spring is in the air. Buyer activity has been gradually on the rise for most of 2011 as prospective buyers seem to prefer sporadic puddles to insurmountable snowbanks. Compared to last year’s incentive market, however, the year-over-year declines in purchase activity have been growing as well.

The number of Active Listings for Sale has remained remarkably stable thus far in 2011. In 2010, inventory levels had fluctuated by more than 6,000 units from the first of the year. That volatility has been tamped down below 1,000 units so far this year. With no additional purchase incentive in the pipeline, this should bring supply side improvements and price stability as demand returns to historically reasonable levels.

As reported by the Minneapolis Area Association of Realtors.

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Housing Supply Overview: February 2011

Housing Supply Overview

Hso_overview_icon

Whenever someone asks you “how is the market,” the most logical response is “for which segments and relative to what?” In the Twin Cities region, the price range with the strongest sales activity was the $1 Million and above range, where sales were up 24.5 percent over the last 12 months. Sales were weakest in the $190,001 to $250,000 range, where sales were down 25.4 percent versus last year.

Inventory in the region has fallen 4.6 percent, led by a decline in new construction. Median Sales Price was up the most in the Single-Family segment with a 2.4 percent gain, while prices for Townhomes and Condominiums both declined.

The price range with the longest Days on Market Until Sale was the $1 Million abd above range, where the average market time was 249 days. The range with the shortest market times was $120,000 and below, all sitting at 118 days on average.
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For additional information, please contact us.

Kate Walsh
612.220.3309

Ellen Walsh
612.220.3304

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Minneapolis–St. Paul Real Estate Market Update

Real Estate Weekly Update
March 14, 2011

For the week ending March 5, there were 717 signed purchase agreements, a decline of 11.4 percent from a year ago when the market was stimulated by the federal home-buyer tax credit. Over the last three months, there have been almost 900 fewer signed purchase agreements than during the same period a year prior.

On the supply side, sellers brought 1,845 new homes onto the market, or 19.0 percent fewer than the same week last year. The three-month average pace of listing activity was 16.6 percent slower than it was a year ago.

Despite the decline in supply, there are a few other metrics that indicate challenging conditions remain for sellers. The Average Days on Market Until Sale currently sits at 157, up 16.1 percent from a year ago. Similarly, the Percent of Original List Price Received is down to 88.2 from last year’s mark of 93.2.

In essence, in an environment where it takes homes longer to sell, sellers should be focused on proper pricing and preparation if they want a faster sale. Although there are fewer new listings, smart pricing and marketing are more important than ever.

As reported by the Minneapolis Area Association of Realtors.

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Minneapolis–St. Paul Real Estate Market Update

Real Estate Weekly Update
March 7, 2011

For the week ending February 26, home purchase activity in the Twin Cities diverged further away from last year’s tax-credit-inspired market. There were 606 purchase agreements signed during the week, which made for a 30.2 percent decline from year-ago levels. On average, over the past three months, Twin Citizens made a less-distorted 9.5 percent fewer home purchases than they did during the same three-month period in 2010.

On the supply side, sellers brought 1,238 new homes onto the market, or 27.8 percent fewer than the same week last year. The three-month average pace of listing activity was 16.1 percent slower than it was last year.

Both the 2011 and 2010 inventory levels have begun to climb at this time of year, which is normal. Sellers were more likely to list their home at this time last year knowing that credit-motivated buyers were more determined to purchase. It seems as though sellers wanted to ensure their property appeared in preliminary MLS queries while buyers continued to shop around for the best value up until the deadline.

As reported by the Minneapolis Area Association of Realtors.
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Minneapolis–St. Paul Real Estate Market Update

Real Estate Weekly Update
February 28, 2011

The gap between current and year-ago listing activity continues to widen, as anticipated. Expect the supply-side numbers to show sizable year-over-year declines due to the high baseline set during the spring 2010 tax credit. It should be noted that we are now approaching a period where we’ll be comparing the 2011 non-tax credit market to the 2010 tax credit market at its peak level.

For the week ending February 19, there were 690 signed purchase agreements, which made for a 12.1 percent decline from the same week last year. There were 1,367 New Listings for the week, representing a 25.4 percent decline from a year ago. Active Listings, at 21,642, have been holding steady since the beginning of the year due to subdued seller activity coupled with fairly reliable sales volumes. That marked a 3.3 percent decline from year-ago inventory levels.

A more meaningful comparison is to look back at 2009 and 2008 and avoid tax credit stimulated activity. This week’s 690 Pending Sales fall right in between 2008 and 2009 numbers. While that is less buyer activity than we would like, it does provide hope for
the future.

As reported by the Minneapolis Area Association of Realtors
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Wall Street Journal article: Getting a Mortgage Before the Door Shuts

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Minneapolis–St. Paul Real Estate Market Update

Real Estate Weekly Update
February 21, 2011

For the week ending February 12, there were 710 signed purchase agreements, a meager drop of 0.1 percent from the same week last year. Although we fully expect to be down in year-over-year comparisons for the next three months due to last year’s tax credit incentive, this is still interesting because it marks the first time we’ve had more than 700 Pending Sales since May 2010. Think about that. More sales activity in mid-February 2011 than mid-June 2010.

Similar to the week prior, there were 1,324 New Listings for the week, representing a decline of 24.9 percent from a year ago. Active Listings increased slightly from the week before to 21,553, just a 3.2 percent decline from last year.

How much of this week’s reported pending sales can be attributed to unseasonably warm weather? Looking at 15-plus inches of fresh snowfall today, we’re certain to find out in a couple of weeks.

As reported by the Minneapolis Area Association of Realtors.

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Minneapolis–St. Paul Real Estate Market Update

Real Estate Weekly Update
February 14, 2011

Home sales in the Twin Cities metro are holding steady as the spring market approaches but will not match 2010’s meteoric rise in sales brought about by the federal home-buyer tax credit. For the week ending February 5, there were 639 signed purchase agreements, a drop of 18.1 percent from the same week last year. The 3-month average for Pending Sales shows a 6.5 decrease compared to a year ago, dropping from 7,081 to 6,619.

The number of New Listings coming on the market is also behind last year’s increased pace. The 1,343 new properties listed during the same reporting week represent a decline of 27.3 percent from a year ago.

Less listing activity is understandable given the challenging conditions awaiting home sellers. The Average Days on Market Until Sale metric is growing, while Percent of Original Price Received is shrinking—both signs of buyer negotiating power.

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Minneapolis–St. Paul Real Estate Market Update

Real Estate Weekly Update
February 7, 2011

For the week ending January 29, 2011, purchase activity in the Twin Cities 13-county metro registered 2.0 percent below the same week in 2010.  That marked the smallest decline in buyer activity in two months. Pending Sales in the first half of 2011 will struggle to match the high marks set during last year’s tax credit but should parallel 2009 levels.

Seller activity has mimicked last year’s levels thus far, only about 300 units slimmer. A total of 1,317 New Listings entered the market for the week, 16.9 percent fewer than the same week last year.

Active Listings for Sale increased a modest 1.8 percent from last year. Current inventory levels have remained fairly static over the past five weeks.

As reported by the Minneapolis Area Association of Realtors.

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Minneapolis–St. Paul Real Estate Market Update

Real Estate Weekly Update
January 31, 2011

Twin Cities home buyers braved the arctic air to sign 533 purchase agreements during the week ending January 22. Although that’s 4.5 percent fewer than the same week in 2010, it’s better than the 9.3 percent decline we’ve seen over the last three months.

Sellers brought 1,195 new properties online for the week, a 21.5 percent drop compared to year-ago figures. The 3-month average shows a more subtle 4.9 percent decline.

The number of Active Listings for sale was up 10.6 percent compared to the same week last year, giving buyers 22,810 properties to choose from and sellers 22,809 properties to compete with.

Now if we can just get this snow to stop during our rush hours and weekends.

As reported by the Minneapolis Area Association of Realtors.

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Minneapolis–St. Paul Real Estate Market Update

Real Estate Market Update
January 17, 2011

Twin Cities home buyers and sellers both showed week-over-week increases coupled with year-over-year declines. The 1,490 New Listings were up over 120.0 percent from the previous week but down 10.7 percent from the previous year. The 475 Pending Sales were up over 70.0 percent from the previous week but down 8.7 percent from the previous year.

Moral of the story? The market has embarked on its typical new year’s ascent as we begin our long drive toward spring. We likely won’t match 2010 levels until the summer months – when we’re finally comparing two nonincentive markets on a level playing field.

Inventory was the metric to watch for the week, as the number of active listings for sale snuck in only 7.2 percent above year-ago levels. That’s the smallest inventory increase since the first full week in August 2010. As of January 18, there were 21,687 homes available for purchase. While that’s plenty of product for buyers to sift through, sellers will have to ensure that their properties show well and are priced aggressively.

As reported by the Minneapolis Area Association of Realtors

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Minneapolis–St. Paul Real Estate Market Update

Real Estate Weekly Update
January 10, 2011

Buyers and sellers were less active in the closing week of 2010 than they were during the final week of 2009. Following three consecutive weeks of increases, sellers pulled back and listed 677 new properties or 1.6 percent fewer than they did last year at this time. This is slightly below the three-month average but up from the holiday week.

Buyer activity continued along its seasonal decline. The 279 purchase agreements signed for the week were down 26.2 percent from the year prior. While the number “26.2” may pique the interest of a marathoner, the rest of us are ready to see the market sustain gains in purchase demand. On average over the last three months, the year-over-year decline is a frigid 20.3 percent.

The number of active listings available for purchase rose 10.5 percent from last year to 21,597 properties. That gain came in slightly under the three-month average change in inventory levels but is in line with historical seasonal changes.

As reported by the Minneapolis Area Association of Realtors.

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City-Specific Market Updates: The Top 200+

Learn About Your City and Neighborhood

November and Year-to-Date Figures

The following reports provide updated information on the Twin Cities real estate market by specific cities and neighborhoods. Additional cities and neighborhoods are available upon request.

Minneapolis Report
Covering the areas of: Southwest Minneapolis, Nokomis, Longfellow, Uptown-Lakes, Downtown Minneapolis, Northeast, University Area, Powderhorn, Philips, North Minneapolis, and Camden.

St. Louis Park Report

Edina Report

Minnetonka Report

Hopkins Report

Wayzata Report

Lake Minnetonka Area Report
Covering the areas of: Deephaven, Excelsior, Greenwood, Long Lake, Minnetonka Beach, Wayzata, Woodland, Shorewood, Orono, Mound, Minnetrista, Spring Park, Tonka Bay, and St. Bonifacius.

Golden Valley Report

Twin Cities / 13-County Metropolitan Area Report
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For additional reports not listed here,
please contact me and I’ll be happy to send it to you.

Kate Walsh
612.220.3309
info@designhouse9.com

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Minneapolis–St. Paul Real Estate Market Update

Real Estate Weekly Update
January 3, 2011

Buyer activity for the week ending December 25 was fairly even with last year – down only 3.3 percent to 379 purchase agreements signed. The lowest weekly sales volume on record is 235 and it occurred during the final week of 2007. Weekly sales volumes have lingered between 400 and 700 units since the beginning of May 2010.

Sellers were outwardly optimistic about future purchase activity as they listed 657 new homes on the market, up a substantial 47.3 percent from the same week in 2009. That’s the largest year-over-year gain in seller activity since mid-April 2010.

Inventory levels are still on their seasonal uphill climb, and this won’t change until the snow starts melting. At this rate, that could be May! In all seriousness, there are currently 21,161 Twin Cities properties being actively marketed. That’s 11.5 percent more than the same week last year. This is nothing extraordinary and is in line with the usual seasonal changes.

As 2010 limps into the history books, we happily bid it adieu as the outlook for the latter half of 2011 continues to look up.

As reported by the Minneapolis Area Association of Realtors.

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