Weekly Market Report

For Week Ending January 23, 2016

We’re just breaking into 2016, so it’s a bit early to say how the spring and summer markets are going to fare based on a few weeks of trend analysis, but for the most part, things are happening the way we expected to start the year. There are some nibbles of new listings being added to the market, and sales are taking root, but the overall number of homes for sale has some work to do in order to give this year the real steam it deserves.

In the Twin Cities region, for the week ending January 23:

  • New Listings decreased 14.2% to 908
  • Pending Sales increased 12.1% to 725
  • Inventory decreased 20.7% to 10,403

For the month of December:

  • Median Sales Price increased 9.9% to $219,900
  • Days on Market decreased 11.2% to 79
  • Percent of Original List Price Received increased 1.3% to 95.4%
  • Months Supply of Inventory decreased 31.3% to 2.2

All comparisons are to 2015

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

Weekly Market Report

For Week Ending January 16, 2016

A pattern is emerging that shows a fresh willingness by sellers to put homes on the market and buyers to enter the market. New listings are on the rise, if not in year- over-year comparison, then certainly in week-over-week views, as we bounce well past the new year. Inventory is seemingly unfazed by the new 2016 calendar on the wall, as the trend line has remained roughly the same for the first weeks in January as the last weeks in December. If sales activity builds on what’s happening now and reaches a slow boil, it would be surprising if more inventory mix wasn’t added to the water soon.

In the Twin Cities region, for the week ending January 16:

  • New Listings decreased 8.8% to 978
  • Pending Sales increased 3.5% to 672
  • Inventory decreased 20.3% to 10,392

For the month of December:

  • Median Sales Price increased 9.9% to $219,900
  • Days on Market decreased 11.2% to 79
  • Percent of Original List Price Received increased 1.3% to 95.4%
  • Months Supply of Inventory decreased 31.3% to 2.2

All comparisons are to 2015

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

Twin Cities Housing Market Has Most Closed Sales Since 2005

By Aubray Erhardt on Wednesday, January 20th, 2016

At a press conference today, REALTOR® associations reported that the Twin Cities Metropolitan Area had the best year in terms of the number of closed sales since 2005. Closed sales finished 2015 13.7% better than 2014, boasting 56,390 compared to 49,604 in 2014.

The median sales price in 2015 was $220,000, a 7.0% increase from $205,600 in 2014. This is on top of gains in recent years of +14.4% in 2013 and 11.9% in 2012. The median sales price of single family homes was up 5.6% and townhouse-condos were up 3.8% over the prior year, continuing multi-year positive trends. Distressed sales were a mere 10.6% of all closed sales in 2015. This represents a one-year change in sales of foreclosures and short sales of -26.7%.

“Last year (2015) really showcased the durability of our economic and housing recovery, despite a few obstacles. As sales hit a 10-year high, the Twin Citizens are just as committed to homeownership as ever. Attractive rates, rising rents, job growth, wage increases and the lowest unemployment rate of any major metro area will continue to be positive factors for real estate,” said Judy Shields, President of the Minneapolis Area Association of REALTORS®

Months’ supply of inventory ended the year at an unprecedented low of 2.1 months. This metric indicates how long it would take to sell-off all existing inventory if no new inventory was added and is generally considered balanced, favoring neither buyer nor seller, at 5.0 months. While this metric indicates a sellers’ market that may leave some buyers with fewer options, it also has some market watchers asking themselves whether we’ve seen the supply bottom. While inventory is certainly a metric to watch it’s probably best measured and compared throughout the selling season and not at year end.

“Since inventory conditions vary across the metro and market conditions change quickly, would-be sellers are encouraged to contact their REALTORS® for an updated market analysis. Your home might be worth more than you think,” said Bob Clark, President of the Saint Paul Area Association of REALTORS®.

Days on market continued to shrink, ending 2015 at just 76 days on the market – a 10-year record low.

Percent of original list price, a metric that demonstrates a relationship of the original list price compared to the final sales price remains strong at 96.6% overall and across market segments. For example, this means if a home was originally listed at $100,000 its final sales price was $96,600.

Single family homes and townhouse-condo segments were at 96.6% of original list. Previously owned was at 96.4%. New construction topped out a 99.6% of original list. This indicates sellers have regained their pricing power and are accepting near-full price offers on their listings.

“We know that well maintained, appropriately priced homes with amenities are selling fairly quickly but moreover the data shows that as well,” said Clark.
From The Skinny Blog.

Weekly Market Report

For Week Ending January 9, 2016

We are just getting started into 2016 residential real estate market activity, but early indicators are pointing to a positive start. Home sales are expected to have a healthy amount of growth in 2016, but along with the rise in sales, modest increases in home prices are also expected. Low mortgage rates are an unexpected ray of sunshine this week, amidst typical winter doldrums.

In the Twin Cities region, for the week ending January 9:

  • New Listings increased 11.3% to 1,144
  • Pending Sales increased 15.3% to 708
  • Inventory decreased 20.8% to 10,293

For the month of December:

  • Median Sales Price increased 9.9% to $219,900
  • Days on Market decreased 12.4% to 78
  • Percent of Original List Price Received increased 1.3% to 95.4%
  • Months Supply of Inventory decreased 31.3% to 2.2

All comparisons are to 2015

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

Weekly Market Report

For Week Ending January 2, 2016

Optimism is in the air as we turn to face a new calendar year. As far as residential real estate goes, there is plenty to feel positive about. Buying and selling activity continued through the final months of 2015, and there’s little reason to believe that trend will slow down during the first month of 2016. If anything, the past few years have indicated a tendency for listings and sales to increase in January.

In the Twin Cities region, for the week ending January 2:

  • New Listings decreased 24.8% to 416
  • Pending Sales increased 2.2% to 550
  • Inventory decreased 19.5% to 11,175

For the month of December:

  • Median Sales Price increased 9.9% to $219,900
  • Days on Market decreased 12.4% to 78
  • Percent of Original List Price Received increased 1.4% to 95.5%
  • Months Supply of Inventory decreased 34.4% to 2.1

All comparisons are to 2015

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

Weekly Market Report

For Week Ending December 26, 2015

As another year winds down, we’ll be looking toward 2016 with increased interest in changes in trend lines. But as we’ve seen over the last several months, and now beginning to become multiple years, the trends have been pretty steady. The prevailing thought by national market watchers is that 2016 will largely mirror 2015 but at a more even pace. The continuation of Fed rate increases are expected to keep things in check, but the funny thing about anticipating those increases is that it tends to inspire more activity. Happy New Year!

In the Twin Cities region, for the week ending December 26:

  • New Listings increased 0.7% to 271
  • Pending Sales increased 39.6% to 483
  • Inventory decreased 19.3% to 11,519

For the month of November:

  • Median Sales Price increased 6.8% to $219,040
  • Days on Market decreased 7.6% to 73
  • Percent of Original List Price Received increased 1.2% to 95.8%
  • Months Supply of Inventory decreased 28.2% to 2.8

All comparisons are to 2014

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

Weekly Market Report

For Week Ending December 19, 2015

A week after the Federal Reserve raised short-term interest rates to .25 percent to .5 percent, the average on a 30-year fixed mortgage dropped .01 percent from the previous week to 3.96 percent, proving for now that the Fed’s effect on long-term rates is indirect when inflation is low, among other factors. Some even believe that rate hikes mean much more to Wall Street observers than home buyers. Not everyone agrees with this assessment, but residential real estate is still certainly spinning on an active axis as we work our way to a new year.

In the Twin Cities region, for the week ending December 19:

  • New Listings increased 1.3% to 601
  • Pending Sales increased 17.2% to 799
  • Inventory decreased 18.4% to 12,105

For the month of November:

  • Median Sales Price increased 6.8% to $219,040
  • Days on Market decreased 7.6% to 73
  • Percent of Original List Price Received increased 1.2% to 95.8%
  • Months Supply of Inventory decreased 28.2% to 2.8

All comparisons are to 2014

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

Weekly Market Report

For Week Ending December 12, 2015

This year, it is projected that 46.1 percent of holiday shopping will be done online, up from 44.4 percent last year. As American consumers continue to change the way they buy things, we’re already seeing massive upheaval in long-entrenched ways of going about this thing called life. Fewer people are driving, or even buying cars for that matter, which allows sharing-economy companies like Uber and Zipcar to exist. Fewer people are going to department stores and malls, which allows home-shipping giants like Amazon to exist. One day soon, even home purchases will happen in a vastly different way. Are you ready for what’s next?

In the Twin Cities region, for the week ending December 12:

  • New Listings increased 8.0% to 715
  • Pending Sales increased 16.8% to 777
  • Inventory decreased 17.9% to 12,536

For the month of November:

  • Median Sales Price increased 6.9% to $219,080
  • Days on Market decreased 7.6% to 73
  • Percent of Original List Price Received increased 1.2% to 95.8%
  • Months Supply of Inventory decreased 28.2% to 2.8

All comparisons are to 2014

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