Monday, May 22nd, 2017

Right now is a potentially lucrative time to sell a home

Posted in Monthly Skinny Video |
Thursday, May 18th, 2017

For Week Ending May 6, 2017

As we get closer to summer, more houses are put up for sale, as tends to happen around this time each year. Yet it’s not as many homes for sale as 2016, and last year did not have as much available to buy as in 2015. The downward trend continues, which can have an affect on total sales. Homes listed when move-in ready and priced well are being snapped up quickly. In fact, despite lower inventory, many REALTORS® report that they are busier than last year and closing plenty of sales.

In the Twin Cities region, for the week ending May 6:

  • New Listings increased 5.7% to 2,341
  • Pending Sales decreased 4.4% to 1,507
  • Inventory decreased 18.9% to 11,012

For the month of April:

  • Median Sales Price increased 6.5% to $246,000
  • Days on Market decreased 20.5% to 58
  • Percent of Original List Price Received increased 1.2% to 99.2%
  • Months Supply of Inventory decreased 21.4% to 2.2

All comparisons are to 2016

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

Posted in Weekly Report |
Monday, May 15th, 2017
By Erin Milburn on Friday, May 12th, 2017

Compared to April 2016, new listings in the Twin Cities declined 8.3 percent while pending sales decreased 8.5 percent. Given that there were about 20.0 percent fewer homes for sale, a modest decrease in signed purchase agreements compared to last year reflects a shortage of listings and not necessarily declining demand. Days on market is still down and the number of showings per listing rose compared to last April. Buyers are still eager to purchase a home, but supply side constraints are weighing on sales activity. Those shopping for homes have 10,916 properties from which to choose in the metro area, the lowest April reading since 2003.

Low supply and high demand environments tend to drive prices higher. The median sales price rose 6.3 percent from last April to $245,500. Multiple offers on updated, turn-key properties are common in low inventory environments. Properties also tend to sell quickly and for close to or above list price. Average days on market until sale fell 20.5 percent to 58 days compared to 73 in April 2016. It’s worth noting that the median days on market for April was a brisk 21 days—a 10-year record pace. The average percent of original list price received at sale was 99.2 percent, 1.2 percent higher than last year. Similarly, the median percent of original list price received at sale was 100.0 percent, meaning half the sales closed for less than full list price while the other half closed for over list price. The Twin Cities has only 2.2 months of housing supply—the lowest April reading since 2003. Generally, five to six months of supply is considered a balanced market where neither buyers nor sellers have a clear advantage.

“Any agent or house hunter can confirm that buyers are in no way disappearing,” said Cotty Lowry, Minneapolis Area Association of REALTORS® (MAAR) President. “But we are seeing signs that the shortage of listings is starting to hold back our demand indicators such as pending [sales] and closed sales. Despite fewer listings, we still saw more showings per listing.”

A healthy and diverse local economy has been conducive to housing recovery. The most recent national unemployment rate is 4.4 percent, though it’s 3.8 percent locally. The Minneapolis–St. Paul region has a resilient economy with a global reach, a talented workforce, top notch schools and a quality of life that’s enabled one of the highest homeownership rates in the country.

The average 30-year fixed mortgage rate has declined from 4.3 percent to 4.0 percent lately, still well below a long-term average of about 8.0 percent. Excluding any surprising data or events, the Federal Reserve is likely to increase their target federal funds rate at least once more this year. Wage and inventory growth are key to offsetting affordability declines brought on by higher rates.

“The shortage of supply in our market is showing up in several ways beyond price gains, quick markets times and multiple offers,” said Kath Hammerseng, MAAR President-Elect. “Additional inventory is key to sustaining our housing recovery and is critical to maintaining a healthy and accessible marketplace.”

All information is according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from NorthstarMLS. 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.

From The Skinny Blog.

Posted in The Skinny |
Monday, May 8th, 2017

For Week Ending April 29, 2017

Much of the news surrounding the housing market is about climbing prices and continued decreases in inventory on a year-over-year basis. Although prices have been rising steadily, we are only now beginning to reach pre-recession price levels on a national basis, and that’s not the rule for all homes and communities. If demand stays strong, unemployment rates continue to dwindle and wages keep consumer confidence high, the market should remain active and interesting.

In the Twin Cities region, for the week ending April 29:

  • New Listings increased 0.1% to 1,873
  • Pending Sales decreased 9.6% to 1,443
  • Inventory decreased 19.8% to 10,901

For the month of March:

  • Median Sales Price increased 6.9% to $237,400
  • Days on Market decreased 15.3% to 72
  • Percent of Original List Price Received increased 1.3% to 98.1%
  • Months Supply of Inventory decreased 19.2% to 2.1

All comparisons are to 2016

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

Posted in Weekly Report |
Monday, May 1st, 2017

For Week Ending April 22, 2017

It is a lucrative time to sell a home, and it would appear that it will remain that way for the time being. Houses that show well and are priced correctly have been selling quickly, often at higher prices than asking. Thus far, buyers are proving to be resilient in 2017, keeping the home-purchasing momentum up even amidst the mounting competition that comes with the annual spring market.

In the Twin Cities region, for the week ending April 22:

  • New Listings increased 4.7% to 2,037
  • Pending Sales decreased 9.8% to 1,409
  • Inventory decreased 21.5% to 10,625

For the month of March:

  • Median Sales Price increased 6.9% to $237,400
  • Days on Market decreased 15.3% to 72
  • Percent of Original List Price Received increased 1.3% to 98.1%
  • Months Supply of Inventory decreased 19.2% to 2.1

All comparisons are to 2016

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

Posted in Weekly Report |

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