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 | 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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Real Estate Update

Weekly Real Estate Update
March 12, 2012


The last six years or so have been tough on home prices, and even the most optimistic prognosticators say it will take another six years for median sales prices to approach the halcyon days of assured annual value increases for home sellers. Generations of stable home price increases gave way to a boom-and-bust cycle that would have made the Pets.com sock puppet blush. As we enter what should be an active spring market, our communities would do well to focus effort toward creating healthy, happy homes. With those in place, prices will rise again.

In the Twin Cities region, for the week ending March 3:
• New Listings decreased 23.2% to 1,402
• Pending Sales increased 29.7% to 940
• Inventory decreased 22.9% to 17,818

For the month of February:
• Median Sales Price decreased 1.1% to $138,500
• Days on Market decreased 9.0% to 145
• Percent of Original List Price Received increased 2.6% to 90.6%
• Months Supply of Inventory decreased 36.5% to 4.6

As reported by the Minneapolis Area Association of Realtors.

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Real Estate Update

Weekly Real Estate Update
February 6, 2012


Whether motivated by the election cycle, a jump in employment, improving housing market metrics or the best start to a year for the S&P 500 since 1989, home buyers posted increased activity levels compared to last year. Consumers signed more purchase agreements but sellers entered into fewer listing contracts. Changes in supply side metrics confirm this, suggesting that relatively less new product is entering the market compared to buyer demand. That’s helped other metrics return to more friendly territory. Whatever the reason, it’s good to see that vote of confidence.

In the Twin Cities region, for the week ending January 28:

• New Listings decreased 17.5% to 1,090
• Pending Sales increased 22.9% to 833
• Inventory decreased 23.5% to 17,762

For the month of December:

• Median Sales Price decreased 6.5% to $145,000
• Days on Market decreased 2.3% to 141
• Percent of Original List Price Received increased 1.7% to 90.6%
• Months Supply of Inventory decreased 33.3% to 4.8

As reported by the Minneapolis Area Association of Realtors.

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Real Estate Update

Weekly Real Estate Update
January 9, 2012

For week ending December 31, 2011

Most observers would agree that this year’s housing recovery was not as robust as many had hoped. That said, a handful of things went right. Inventory declines and a pullback in listing activity meant sellers generally faced fewer challenges than in the past. Driven by improvements in the economy and record-low mortgage rates, purchase demand strengthened organically, independent of government incentives. Those sales gains dovetailed with falling inventories to move the market back toward balance. Nobody knows what 2012 will bring, but it’s a safe bet that these positive developments will continue to evolve.

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Real Estate Update

Weekly Real Estate Update
December 27, 2011


Another year is coming to a close, and you could sum up the local housing market as another “transition year”. There were ups and downs, with positive developments stunted by political paralysis, joblessness or other issues. Nonetheless, the housing sector took important strides forward.

Record low mortgage rates brought buyers out to the streets to snap up excess housing supply off the market. These home sales have reduced both inventory levels and seller concessions. Foreclosures and short sales have seen plenty of demand in part due to many consumers facing tighter household finances. While this has created limited price gains in many areas, it’s also hastened the eventual absorption of distressed properties.

In the Twin Cities region, for the week ending December 17:

• New Listings: decreased 16.9% to 799

• Pending Sales: increased 50.1% to 749

• Inventory decreased: 23.6% to 19,

For the month of November:

• Median Sales Price: decreased 10.2% to $149,000

• Days on Market: decreased 1.8% to 135

• Percent of Original List Price Received: increased 1.0% to 90.9%

• Months Supply of Inventory: decreased 30.0% to 5.7

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Statistics provided by the Minneapolis Area Association of Realtors.

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Real Estate Overview

Housing Supply Overview
November 2011


With 2012 just around the corner, many local markets have enjoyed strong sales volumes combined with falling inventory levels so far this year. For the twelve-month period spanning December 2010 through November 2011, Pending Sales in the Twin Cities region were up 10.1 percent overall. The price range with the largest gain in sales was the $120,000 and under range, where they increased 50.9 percent.

The overall Median Sales Price was down 10.0 percent to $153,000. The property type with the smallest price decline was the Single-Family segment, where prices decreased 8.2 percent to $169,900. The price range that tended to sell the quickest was the $190,001 to $250,000 range at 137 days; the price range that tended to sell the slowest was the $1,000,001 and above range at 256 days.

Market-wide, inventory levels were down 23.6 percent. The property type that lost the least inventory was the Single-Family segment, where it decreased 20.5 percent. That amounts to 5.7 months supply for Single-Family homes, 4.7 months supply for Townhomes and Twinhomes and 7.7 months supply for Condominiums.
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Click on graph/chart to enlarge

As reported by the Minneapolis Area Association of Realtors.
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For additional information on the current real estate market,
please email or call us:

Ellen Walsh
612.220.3304
emwalsh@cbburnet.com

Kate Walsh
612.220.3309
info@designhouse9.com

Thank you for visiting and you have yourself a fine day.

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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 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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Photo of the Day

Clouds Over Calhoun

This photo was taken in August of this year. My sister and I were walking back to the car after our fun afternoon at the Uptown Art Fair.

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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
September 12, 2011


Seller activity showed a continuation of its intermediate-term holding pattern, with 14.3 percent fewer listings than the same week in 2010. The 1,313 new listings were more or less on pace with their 3-month 12.0 percent average decline.

Buyer activity continued to post large gains over the 2010 numbers. This time, Twin Cities home buyers entered into 976 purchase agreements or 35.6 percent more than the same week last year.

As we’ve previously pointed out, shrinking inventory levels can be an important market signal. There are currently 23,849 active listings (20.9 percent fewer than last year at this time) from which buyers can choose.

Next week, watch for a changing story with absorption rates and seller concessions. As supply and demand attempt to find neutral ground, sellers are making fewer concessions in order to sell their homes.

As reported by REALTOR Kate Walsh and the Minneapolis Area Association of Realtors.

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Real Estate Update

Real Estate Weekly Update
September 6, 2011

We are now up to 14 consecutive weeks of accelerating inventory attrition. Let’s go out on a limb and call this a pattern. For the current period, the number of active listings was down 20.6 percent to 24,047 properties. That’s the largest inventory decline in nearly eight years. The metric is now back around first-quarter 2006 levels.

It’s plain to see what’s driving these declines. Sales are up and listings are down, allowing buyers to absorb the active supply of homes. Buyer activity was up 43.3 percent to 957 purchase agreements signed. While those 957 contracts are reminiscent of 2007, 2008 and even 2009 purchase levels, they far exceed the 2010 summer slowdown. We have now reached 16 consecutive weeks of double-digit gains in buyer activity. Once again, it feels safe to call that a trend.

These undercurrents are flowing into other metrics, such as months supply and measures of seller concessions. Months supply of inventory was down to 7.7 months, the first year-over-year decline since June 2010. On average, sellers are receiving more of their asking price. August’s monthly figures, due to be released next Tuesday, should show a continuation pattern of the trends reported for July.

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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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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