Monday, April 22nd, 2019

If February was the month of record snowfall, March was the month of record wet basements. The effects of extreme weather continue to impact the market. Despite that, the latest numbers for Twin Cities residential real estate show some strength amidst ongoing signs of change. Prices continued to climb, reaching a new record. New listings fell 8.8 percent as fewer sellers listed their properties. Closed sales were down 9.3 percent as some buyers waited on soggy properties as well as additional inventory options. Market times rose year-over-year for the first time since March 2015. Another sign of a changing market is the ratio of sold to list price has fallen for four of the last five months. This—along with other indicators—suggest the market is improving for buyers, even though sellers still have strong pricing power, favorable negotiating leverage and quick market times.

The number of active listings for sale decreased compared to the prior year. Even so, buyers have seen inventory gains for five of the last six months. Months supply, however, was flat at 1.8 months, suggesting the market is still tight but realigning. Buyers should still expect competition on the most coveted listings. After touching 5.0 percent in November, mortgage rates have settled back down around 4.1 percent, which is great news for buyers. The supply squeeze is most evident at the entry-level prices, where multiple offers and homes selling for over list price are commonplace. The move-up and upper-bracket segments are less competitive and better supplied.

March 2019 by the Numbers (compared to a year ago)

  • Sellers listed 6,160 properties on the market, an 8.8 percent decrease from last March
  • Buyers closed on 3,673 homes, a 9.3 percent decrease
  • Inventory levels for March declined 4.2 percent compared to 2018 to 8,685 units
  • Months Supply of Inventory was flat at 1.8 months
  • “There’s plenty of buyers and sellers out there looking to get deals done,” said Linda Rogers, President-Elect of Minneapolis Area REALTORS®. “If rates and inventory cooperate, we’re still anticipating a solid year.”
  • The Median Sales Price rose 6.5 percent to $275,000, a record high for any month
  • Cumulative Days on Market rose 15.8 percent to 66 days, on average (median of 30)
  • Changes in Sales activity varied by market segment
    • Single family sales declined 7.2 percent; condo sales sank 16.5 percent; townhome sales fell 12.2 percent
    • Traditional sales decreased 7.9 percent; foreclosure sales declined 26.8 percent; short sales fell 32.3 percent
    • Previously-owned sales were down 10.1 percent; new construction sales rose 2.3 percent

    Quotables

    “The extremes of February and March are still noticeable,” said Todd Urbanski, President of Minneapolis Area REALTORS®. “It’s difficult to disentangle weather-induced market shifts with organic market shifts.”

    All information is according to the Minneapolis Area REALTORS® based on data from NorthstarMLS. Minneapolis Area REALTORS® 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. We serve the Twin Cities 16-county metro area and western Wisconsin.
    From The Skinny Blog.

Posted in The Skinny |
Monday, April 15th, 2019
For Week Ending April 6, 2019

New listings finally started to perk up across the nation last week, effectively launching residential real estate into the springtime selling season. Much has been said and written about the slow launch of new homes for sale in what was anticipated to be a year of rising inventory. Mother Nature has had different plans so far in several markets, adding another burst of winter weather in April that may spoil an otherwise promising start to the second quarter of 2019.

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

  • New Listings decreased 3.4% to 1,883
  • Pending Sales decreased 6.1% to 1,208
  • Inventory decreased 2.2% to 8,797

For the month of March:

  • Median Sales Price increased 6.5% to $275,000
  • Days on Market increased 15.8% to 66
  • Percent of Original List Price Received decreased 0.5% to 98.6%
  • Months Supply of Homes For Sale remained flat at 1.8

All comparisons are to 2018

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Posted in Weekly Report |
Monday, April 8th, 2019
For Week Ending March 30, 2019

The national unemployment rate held firm at 3.8 percent for the second month in a row, which is good news for an economy that has shown signs of slowing down during the first three months of 2019. Hiring and wage gains have both been below expectations, retail sales dropped considerably to close 2018, and there have been fewer home sales across the nation. Maintaining a historically low unemployment rate is reassuring and may offer confidence to many wary and weary consumers.

In the Twin Cities region, for the week ending March 30:

  • New Listings increased 18.6% to 1,470
  • Pending Sales decreased 3.1% to 1,151
  • Inventory decreased 4.3% to 8,657

For the month of February:

  • Median Sales Price increased 6.2% to $265,500
  • Days on Market remained flat at 69
  • Percent of Original List Price Received decreased 0.3% to 97.7%
  • Months Supply of Homes For Sale remained flat at 1.7

All comparisons are to 2018

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Posted in Weekly Report |
Monday, April 1st, 2019

For Week Ending March 23, 2019

As new listings continue to fail to gain traction and inventory struggles to keep pace with the already low figures from last year, one begins to wonder if the U.S. is poised for a real estate slowdown. Some observers are seeing this as an inevitability, as investors price out more typical, family-driven home buyers. Housing starts and permits are also trending downward, and research indicates that the percentage of sales with price reductions are on the rise.

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

  • New Listings decreased 10.4% to 1,428
  • Pending Sales decreased 16.5% to 1,030
  • Inventory decreased 5.6% to 8,429

For the month of February:

  • Median Sales Price increased 6.2% to $265,500
  • Days on Market remained flat at 69
  • Percent of Original List Price Received decreased 0.3% to 97.7%
  • Months Supply of Homes For Sale remained flat at 1.7

All comparisons are to 2018

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Posted in Weekly Report |
Monday, March 25th, 2019

For Week Ending March 16, 2019

The Federal Reserve recently announced that interest rates will remain steady and that further rate hikes are not planned for 2019. Given that the federal funds rate has increased nine times over the past three years, this is welcome news for consumers carrying high credit card balances. The overall economy, inflation and Fed actions also have an effect on mortgage rates, so it is generally good news when rate hikes are paused, especially when total sales are dropping in many parts of the nation.

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

  • New Listings decreased 12.2% to 1,374
  • Pending Sales decreased 20.8% to 976
  • Inventory decreased 5.8% to 8,273

For the month of February:

  • Median Sales Price increased 6.2% to $265,500
  • Days on Market remained flat at 69
  • Percent of Original List Price Received decreased 0.3% to 97.7%
  • Months Supply of Homes For Sale remained flat at 1.7

All comparisons are to 2018

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

Posted in Weekly Report |