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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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 Overview

The Year in Review: Real Estate 2011

Now that 2011 is fully in the books, it’s important to discern which market segments performed well and which encountered additional challenges. This not only sheds light on consumer behavior, but also provides a preliminary look at what 2012 might have in store. For the 12-month period spanning January 2011 through December 2011, Pending Sales in the Twin Cities region were up 10.8 percent overall. The price range with the largest gain in sales was the $120,000 and Below range, where they increased 51.6 percent.

The overall Median Sales Price was down 11.7 percent to $150,000. The property type with the smallest price decline was the Single-Family segment, where prices decreased 9.7 percent to $167,000. The price range that tended to sell the quickest was the $190,001 to $250,000 range at 141 days; the price range that tended to sell the slowest was the $1,000,001 and Above range at 292 days.

Market-wide, inventory levels were down 28.6 percent. The property type that lost the least inventory was the Single-Family segment, where it decreased 25.9 percent. That amounts to 0.0 months supply for Single- Family homes and 6.3 months supply for Condos.

As reported by the Minneapolis Area Association of Realtors.

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Real Estate Update

Weekly Real Estate Update
February 27, 2012

The week left yet another trail of evidence leading back to a housing market on the mend. This time, the encouraging signs were even less clandestine. Nationally, both new and existing home sales enjoyed improvements. Even some December numbers were upwardly revised. New home sales have real and noticeable impacts on GDP, thus generating jobs and driving down unemployment. The overall bias for the entire U.S. is firmly toward balance. Locally, market activity was mostly positive. Spring will still be the major tell.

In the Twin Cities region, for the week ending February 18:
• New Listings decreased 7.1% to 1,256
• Pending Sales increased 28.6% to 899
• Inventory decreased 23.2% to 17,756

For the month of January:
• Median Sales Price decreased 3.4% to $140,000
• Days on Market decreased 8.5% to 142
• Percent of Original List Price Received increased 3.4% to 91.2%
• Months Supply of Inventory decreased 34.2% to 4.7

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. ~~~

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 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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