Local Real Estate News
If you follow our weekly notes with even a sidelong glance, you know that the story of the market in 2011 has been increased sales and decreased inventory. That's all well and good, but consumers and the media want to talk about one thing: Price. Ideally, sellers seek multiple offers. This signals strong demand and competitive bidding. Buyers want to know that purchasing a home is a financially sound investment. Consumers, whether buyer or seller, want to know when we'll be establishing a stable real estate foundation again. Which is exactly why the tale of increased sales activity and healthy inventory absorption matters.
In the Twin Cities region, for the week ending December 24:
- New Listings decreased 9.6% to 596
- Pending Sales increased 48.4% to 607
- Inventory decreased 24.4% to 18,666
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 29.8% to 5.7
- Inventory decreased 24.4% to 18,666
The attached Weekly Market Activity Report is produced by the Minneapolis Area Association of REALTORS® (MAAR) for REALTOR® members and interested parties on a weekly basis. Use it to further your understanding of the Twin Cities 13-county residential real estate marketplace.
Click here for the full Weekly Market Activity Report.
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.
In the Twin Cities region, for the week ending December 3:
- New Listings decreased 9.3% to 1,006
- Pending Sales increased 36.4% to 885
- Inventory decreased 22.9% to 20,031
For the month of November:
- Median Sales Price decreased 9.9% to $149,500
- 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 30.5% to 5.7
The attached Weekly Market Activity Report is produced by the Minneapolis Area Association of REALTORS® (MAAR) for REALTOR® members and interested parties on a weekly basis. Use it to further your understanding of the Twin Cities 13-county residential real estate marketplace.
Click here for the full Weekly Market Activity Report.
Last month, the number of homes for sale in the 13-county Twin Cities metropolitan area plunged nearly 24.0 percent from last year to 19,516 – the lowest November inventory reading since 2004. In addition, November 2011 marked only the third month in more than five years (68 months to be precise) where there was less than six months supply of inventory. Sellers listed 4,102 new homes on the market, down 13.6 percent from last year. Buyers entered into 3,321 purchase agreements, up 30.2 percent over November 2010.Some sellers are already starting to benefit from less competition. The share of asking price that sellers receive at sale has posted year-over-year increases for the fourth consecutive month. In November, sellers received an average of 90.9 percent of their asking price. That figure was likely helped by the 30.6 percent decrease in months supply of inventory – currently at 5.7 months. Generally, 5 to 6 months is considered balanced.
The median home price was down 10.1 percent from November 2010 to $149,250. Lender-mediated activity (foreclosures and short sales) comprised 44.1 percent of all closed sales and 41.9 percent of new listings.
The first and fourth quarters of the year tend to see the most distressed sales and listing activity. Consequently, traditional prices fell 9.2 percent to $187,400, foreclosure prices dropped 14.3 percent to $98,500 and short sale prices were down 11.5 percent to $130,000.
Market times were down 1.7 percent to 135 days, on average – the second year-over-year decrease in a row. The housing affordability index hit a new record high of 245, meaning that the median household income in the region was 245% of what is necessary to qualify for the median-priced home under prevailing interest rates.
12-6-2011
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
The attached Weekly Market Activity Report is produced by the Minneapolis Area Association of REALTORS® (MAAR) for REALTOR® members and interested parties on a weekly basis. Use it to further your understanding of the Twin Cities 13-county residential real estate marketplace.
Click here for the full Weekly Market Activity Report.
11-1-2011
This week's market scorecard shows increased activity levels for buyers and a modest decline in seller activity. Consumer purchase demand posted a welcomed increase over the same week in 2010. Sellers brought fewer new listings onto the market than last year. Home purchase activity is still one of the most paramount drivers of sustained recovery. The key then becomes determining the overall market momentum.
In the Twin Cities region, for the week ending October 22:
- New Listings decreased 15.8% to 1,100
- Pending Sales increased 28.8% to 822
- Inventory decreased 21.5% to 22,132
For the month of September:
- Median Sales Price decreased 7.2% to $155,000
- Days on Market increased 5.5% to 137
- Percent of Original List Price Received increased 0.3% to 91.1%
- Months Supply of Inventory decreased 21.9% to 6.8
The attached Weekly Market Activity Report is produced by the Minneapolis Area Association of REALTORS® (MAAR) for REALTOR® members and interested parties on a weekly basis. Use it to further your understanding of the Twin Cities 13-county residential real estate marketplace.
Click here for the full Weekly Market Activity Report.
10-17-2011
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.
The attached Weekly Market Activity Report is produced by the Minneapolis Area Association of REALTORS® (MAAR) for REALTOR® members and interested parties on a weekly basis. Use it to further your understanding of the Twin Cities 13-county residential real estate marketplace.
Click here for the full Weekly Market Activity Report.
With the final week of the third quarter in the books, buyers posted solid gains over last year's activity levels while sellers listed fewer properties on the market. As is typical for this time of year, expect some seasonal changes to start taking hold. Market activity may slow from one month to the next but should still show favorable year-over-year progress. The lending climate improved even more last week as interest rates dipped below 4.0 percent for the first time ever.
In the Twin Cities region, for the week ending October 1:
- New Listings decreased 21.0% to 1,219
- Pending Sales increased 32.7% to 926
- Inventory decreased 22.8% to 23,177
For the month of September:
>Click here for the full Weekly Market Activity Report.
- Median Sales Price decreased 6.0% to $156,000
- Days on Market increased 4.6% to 137
- Percent of Original List Price Received increase 0.5% to 91.2%
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 trendlines continue to mimic one another, with one important exception. This year's trendline 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.
Click here for the full Weekly Market Activity Report.
