April was another strong month for home sales. The busy spring market continues to see many multiple offer situations driving sales prices above asking price.
Supply Rebounds from 2020 Levels While Demand Continues to Rise
Market times fastest in 14 years amid record home prices in the Twin Cities
(May 17, 2021) – According to new data from the Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, seller activity in April was up 21.7 percent compared to last year, when new listings dipped partly due to COVID-19. The number of homes that were put on the market in April is comparable to pre-pandemic levels in 2019 and 2018.
The median price of a home in the 16-county Twin Cities metro rose to $337,000, a 10.5 percent increase from last April and a new record high for the region. Even so, half of homes go under contract within 8 days of listing, the fastest time in at least 14 years. This is a clear indication that the metro is still in need of a greater housing supply to keep up with rising demand.
“It’s promising to see improvements in housing supply, but it’s clear that we aren’t out of the woods just yet,” said Todd Walker, President of Minneapolis Area REALTORS®. “In time, more potential sellers will be encouraged to list, enticed by rising prices and more inventory. In the meantime, developers need incentives to expand new inventory, particularly in affordable price ranges.”
Although supply rebounded to that of pre-pandemic levels in April, the increase in demand was even greater. Pending sales are up 34.0 percent from April of last year and exceed 2019 numbers by 8.2 percent. With 5,619 homes for sale, the Twin Cities currently has 1.0 month’s supply of inventory. Typically, 4-6 months is considered a balanced market.
“Buyers still benefit from record low mortgage rates at around 3.0 percent,” according to Tracy Baglio, President of the Saint Paul Area Association of REALTORS®. “Although a limited supply is driving prices higher, low rates are a strong incentive to offer a competitive bid for a home.”
Activity varies by area, price point and property type. Sales of single-family homes were up 32.0 percent in Minneapolis and 14.8 percent in St. Paul, suggesting demand remains strong in the core cities. Across the 16-county Twin Cities region condo sales rose 50.6 percent, outpacing single-family and townhomes. Sales on previously owned homes rose 10.3 percent while new construction rose 2.0 percent. Luxury property sales ($1M+) are up 180.6 percent from last April, 90.6 percent from April 2019.
April 2021 by the numbers compared to a year ago
- Sellers listed 7,468 properties on the market, a 21.7 percent increase from last April
- Buyers signed 6,220 purchase agreements, up 33.6 percent (5,088 closed sales, up 8.8 percent)
- Inventory levels fell 45.8 percent to 5,619 units
- Month’s Supply of Inventory was down 52.4 percent to 1.0 month (4-6 months is balanced)
- The Median Sales Price rose 10.5 percent to $337,000
- Days on Market decreased 34.0 percent to 31 days, on average (median of 8 days, down 52.9 percent)
- Changes in Sales activity varied by market segment
- Single family sales were up 3.6 percent; condo sales rose 50.6 percent; townhome sales increased 17.0 percent
- Traditional sales rose 10.1 percent; foreclosure sales were down 44.1 percent; short sales fell 69.2 percent
- Previously owned sales were up 10.3 percent; new construction sales climbed 2.0 percent
Weekly Market Report
For Week Ending May 8, 2021
The Mortgage Bankers Association’s latest National Delinquency Survey found the seasonally adjusted delinquency rate of one-to-four unit residential properties decreased to 6.38 percent of all loans outstanding in Q1 2021, which is 35 basis points lower than Q4 2020 but still 202 basis points higher than the same time last year. The COVID-19 induced delinquency rate peaked in Q2 2020 at 8.22 percent and over the last three quarters has experienced the quickest decline in the history of the survey. Although delinquencies remain elevated, the continued declines are encouraging and are expected to continue.
In the Twin Cities region, for the week ending May 8:
- New Listings increased 0.7% to 1,829
- Pending Sales increased 24.5% to 1,571
- Inventory decreased 47.0% to 5,524
For the month of April:
- Median Sales Price increased 10.5% to $337,000
- Days on Market decreased 34.0% to 31
- Percent of Original List Price Received increased 3.5% to 103.4%
- Months Supply of Homes For Sale decreased 52.4% to 1.0
All comparisons are to 2020
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Weekly Market Report
For Week Ending May 1, 2021
The National Association of Home Builders’ latest Housing Trends Report found that in Q1 2021, 16% of American adults were looking to purchase a home in the next 12 months, up from 10% from a year ago and now at the highest level since Q1 2018. The Millennial generation saw the largest change in expectations year over year, with 32% planning to buy in the next 12 months, double the levels seen in Q1 2020.
In the Twin Cities region, for the week ending May 1:
- New Listings increased 10.8% to 1,730
- Pending Sales increased 25.5% to 1,534
- Inventory decreased 47.8% to 5,406
For the month of March:
- Median Sales Price increased 10.5% to $328,231
- Days on Market decreased 36.1% to 39
- Percent of Original List Price Received increased 2.7% to 101.9%
- Months Supply of Homes For Sale decreased 47.4% to 1.0
All comparisons are to 2020
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Third Post
WordPress’ growing market share is fueling a continual influx of new users but also a higher level of scrutiny around advertising. Companies with large advertising budgets target this segment of consumers, because many who are new to WordPress need help hosting and creating their websites.
Last week Bluehost pulled an advertisement that misused WordPress’s trademark. The company’s PR department has not responded to our request for comment, but onlookers have noted that this isn’t the first time Bluehost has floated questionable ads. Multiple Facebook campaigns, dating back several years, include trademark abuses, as well as active campaigns on YouTube in various markets.
In another advertising-related matter, Elementor, a popular page builder used by more than five million websites, has caught some attention recently for its Google ads that target “full-site editing.” Birgit Pauli-Haack, the publisher of the Gutenberg Times, pointed out the ads last week in the Post Status Slack community.
Weekly Market Report
For Week Ending April 24, 2021
A bit of good news this week on the home affordability front as the 30-year fixed-rate mortgage slipped below 3 percent to 2.97%, according to Freddie Mac. The benchmark 30-year fixed-rate mortgage rate, while still higher than a few months ago, remains more than one third of a percent less than the same time last year. The slight pullback in rates may be short lived, however, as Nadia Evangelou, senior economist for the National Association of REALTORS®, still expects rates to rise in the coming months.
In the Twin Cities region, for the week ending April 24:
- New Listings increased 14.5% to 1,687
- Pending Sales increased 38.4% to 1,509
- Inventory decreased 47.5% to 5,337
For the month of March:
- Median Sales Price increased 10.4% to $328,000
- Days on Market decreased 36.1% to 39
- Percent of Original List Price Received increased 2.7% to 101.9%
- Months Supply of Homes For Sale decreased 47.4% to 1.0
All comparisons are to 2020
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Second One
WordPress theme development company Themix released its third free theme to the official directory this week. Churel is described as a theme for organizations and businesses that also works for traditional blogging.
The development team has a keen eye for modern color schemes and font families. The theme has a refreshing design that is rare for the free theme directory, at least at first glance. It is the sort of project with just the right amount of eye candy to pull users in.
If that was everything necessary for great design, the theme would land in my top 10 picks from WordPress.org without a second thought. However, after digging deeper, it was clear the design had some issues. They are fixable. It would not take much nudging of a few CSS rules to make this a much better theme, so let’s just dive right into the problems before getting into the good stuff.
The theme’s most clear-cut flaw is with its typography. Sizing and words-per-line work well enough. The default Open Sans font is rarely a poor choice for readability. However, the line height is far too large for a good flow, and the white space between paragraphs makes it tough to tell where one ends and the other begins. It is almost as if the team got halfway through with fine-tuning the typography and decided to simply stop. It is a glaring issue that makes the theme practically unusable for long-form content, but it could be addressed with two minor style changes.
First One
Hear and Learn from a panel of veteran agents that have all persevered through difficult markets in the past and have managed to stay relevant and successful. Hear how they shifted their business to meet market conditions in the past crash and what they are doing today to ensure success and longevity for years to come. Also, we will learn about their outlook on the future of the real estate and how it will impact current and newer agents alike. You will not want to miss this one!
Featured panelists:
Kath Hammerseng has a passion for residential sales as a 25-year veteran Realtor® with Edina Realty. She is lauded by colleagues for her professionalism, integrity, and vision in setting big goals. With a career background rooted in business and education, Kath’s approach is to teach her clients everything they need to know to make the right real estate decisions for them.
John Schuster has sold over 3,800 homes in his 18-year career and is an eight-year recipient of #1 Listing Agent with Coldwell Banker Burnet Realty statewide. He ranks in the top one percent of agents in sales nationally. John is known for being personable, communicative, and his clients’ number one advocate.
Cotty Lowry started investing in real estate in 1975 and began his career in real estate sales in 1980. He joined Keller Williams Integrity Lakes as an owner/agent in 2005. Cotty goes everywhere to learn the influencing factors on a home’s value and desirability. Couple fresh knowledge with the experience of 30+ years of buying and selling real estate in the Minneapolis Area, and you’ve got a valuable resource.
Days On The Market By Price Range
Weekly Market Report
For Week Ending April 17, 2021
A new analysis by housing giant Freddie Mac suggests that the U.S. housing market needs 3.8 million more single-family homes nationwide to meet demand. Sam Khater, Freddie Mac’s chief economist, noted “we should have almost four million more housing units if we had kept up with demand the last few years.” While new construction activity has increased in recent years, it has never fully recovered to its previous peak more than fifteen years ago.
In the Twin Cities region, for the week ending April 17:
- New Listings increased 19.0% to 1,582
- Pending Sales increased 45.3% to 1,481
- Inventory decreased 47.6% to 5,276
For the month of March:
- Median Sales Price increased 10.4% to $328,000
- Days on Market decreased 36.1% to 39
- Percent of Original List Price Received increased 2.7% to 101.9%
- Months Supply of Homes For Sale decreased 55.0% to 0.9
All comparisons are to 2020
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
