Thursday, October 18th, 2018
By David Arbit on Wednesday, October 17th, 2018

After years of strong buyer activity and weak seller activity, the market tides seem to finally be shifting back toward balance. Strong demand and weak supply have created an environment that favors sellers. But if anything can be called a constant in the market—it’s change. Four of the last five months showed increases in new listings; while four of the last five months also had decreases in pending sales.

While the market hasn’t quite transformed, the dynamics are shifting and the market is transitioning. September saw the smallest decline in active listings since May 2015, and those long-awaited inventory gains could still happen this year. Months supply was down just 3.8 percent to 2.5 months. Today’s buyers still face plenty of competition over limited supply. However, a recent uptick in rates could further impact some budget-conscious buyers. Locking in at current levels would be advantageous in a rising rate environment.Sellers yielded an average of 98.4 percent of their original list price and 99.7 percent of their current list price, partly illustrating that the shortage still looms. The lack of supply is especially noticeable at the entry-level prices, where multiple offers and homes selling for over list price have become commonplace. The move-up and upper-bracket segments are less competitive and—for the most part—much better supplied. It’s noteworthy that inventory levels could double while sales remain stable and we’d still have less than 5 months of supply.

September 2018 by the Numbers (compared to a year ago)• Sellers listed 6,857 properties on the market, a 5.9 percent increase
Buyers closed on 5,087 homes, a 5.8 percent decrease from last September
Inventory levels for September fell 4.4 percent compared to 2017 to 12,570 units
Months Supply of Inventory was down 3.8 percent to 2.5 months
• The Median Sales Price rose 6.1 percent to $262,000, a record high for September
• Cumulative Days on Market declined 16.0 percent to 42 days, on average (median of 24)
• Changes in Sales activity varied by market segment

Single family sales fell 6.3 percent; condo sales declined 1.1 percent; townhome sales rose 0.4 percent
Traditional sales fell 4.0 percent; foreclosure sales sank 41.1 percent; short sales dropped 25.0 percent
Previously-owned sales were down 5.9 percent; new construction sales increased 11.5 percent

From The Skinny Blog.

Posted in The Skinny |
Monday, October 15th, 2018

For Week Ending October 6, 2018

Residential real estate continues to churn out impressive numbers as we reach deeper into autumn. In many markets, new listings and/or pending sales are still outperforming the results from this same time last year. When the economy is strong, buyers and sellers will remain active beyond the more traditional selling season. Predictions for a slowdown are rolling in, but we’re not there yet. Let’s take a look at what’s happening locally.

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

  • New Listings increased 11.0% to 1,554
  • Pending Sales decreased 1.3% to 1,121
  • Inventory decreased 3.3% to 12,532

For the month of September:

  • Median Sales Price increased 6.1% to $262,000
  • Days on Market decreased 16.0% to 42
  • Percent of Original List Price Received increased 0.3% to 98.4%
  • Months Supply of Inventory remained flat at 2.6

All comparisons are to 2017

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

Posted in Weekly Report |
Monday, October 8th, 2018

For Week Ending September 29, 2018

The U.S. unemployment rate recently dropped to 3.7 percent, which is its lowest mark since December 1969. The economy continues to bear impressive fruit within and outside of residential real estate, and the Federal Reserve has reacted by raising the benchmark federal funds rate by a quarter of a percentage point, the third rate hike of 2018. While this may be undesirable news for those carrying high credit debt, it is also a reflection of a bright economic outlook.

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

  • New Listings increased 15.0% to 1,592
  • Pending Sales decreased 6.3% to 1,123
  • Inventory decreased 4.7% to 12,653

For the month of August:

  • Median Sales Price increased 6.3% to $268,000
  • Days on Market decreased 16.7% to 40
  • Percent of Original List Price Received increased 0.7% to 99.2%
  • Months Supply of Inventory remained flat at 2.6

All comparisons are to 2017

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

Posted in Weekly Report |
Monday, October 1st, 2018

For Week Ending September 22, 2018

Seven years ago, FICO conducted a survey of bankers that concluded that home prices would not recover until 2020. While roughly one million people are still considered underwater in terms of home value, many people would consider the housing industry to not only be fully recovered but flying forward toward unprecedented price points. While high prices may soon begin to turn buyers off, it will be interesting to see if there is a measurable slowdown in real estate activity versus a natural shift to balanced prices.

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

  • New Listings increased 6.1% to 1,555
  • Pending Sales increased 3.0% to 1,156
  • Inventory decreased 5.3% to 12,632

For the month of August:

  • Median Sales Price increased 6.3% to $268,000
  • Days on Market decreased 16.7% to 40
  • Percent of Original List Price Received increased 0.7% to 99.2%
  • Months Supply of Inventory decreased 3.8% to 2.5

All comparisons are to 2017

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

Posted in Weekly Report |
Thursday, September 27th, 2018

“Sales were up compared to last year”

Posted in Monthly Skinny Video |