Saturday, December 28th, 2013

Posted in Monthly Skinny Videos |
Friday, December 27th, 2013

A plethora of economic data was recently released, and it shows that exports rose to their highest level ever while job growth numbers have surpassed even the most hopeful Wall Street expectations. But good news isn’t always good news, since this means that the Fed is going to begin tapering its historic bond-buying activity as the economy heals. Stocks may take a dip. But, with some luck, the demand- side effect of the impending rate increase could be offset by stronger economic fundamentals that should keep the housing market humming along.

In the Twin Cities region, for the week ending December 14:

  • New Listings decreased 1.9% to 759
    • Pending Sales decreased 11.1% to 656
    • Inventory decreased 6.5% to 13,728

For the month of November:

  • Median Sales Price increased 13.4% to $195,000
  • Days on Market decreased 26.5% to 75
  • Percent of Original List Price Received increased 1.3% to 95.4%
  • Months Supply of Inventory decreased 11.1% to 3.2
Posted in Weekly Market Activity Reports |
Thursday, December 26th, 2013

The Fed announced they would be pulling back some of their stimulus package which has helped the housing market by keeping long term mortgage rates at historic lows for the last few years. This should come as no surprise as the KCM Blog has been warning of this likelihood over the last several months.

We even went against the belief of the vast majority of economists who thought the Fed would wait until next year. In this month’s edition of KCM, we quoted Bill McBride of Calculated Risk:

“Although the consensus is the Fed will wait until 2014 to start to taper asset purchases, December is still possible.”

We also gave our members the following grouping of slides to help them explain the ramifications of the Fed’s decision during meetings with buyers and sellers.

Tapering

Click Here For The Full Article

Wednesday, December 18th, 2013

MAAR-November-2013-Stats-News-Release

The 13-county Minneapolis-St. Paul metropolitan area housing market continued to settle itself in November. While some measures of housing demand may suggest a slowdown, most deceleration is the result of a healing lender-mediated (foreclosures and short sales) segment, which made up a smaller share of the residential pie compared to last year.

For the first time in seven months, new listings were lower year over year, declining 5.3 percent to 3,900, but traditional new listings rose 11.1 percent over the same time comparison. Buyers closed on 3,760 homes, a 5.9 percent decrease from last November, even though traditional sales were up 13.6 percent. Twin Citizens have 14,126 properties to choose from – or 5.8 percent fewer than last November.

The market-wide median sales price held steady at $195,000 for a third straight month and up 13.4 percent compared to November 2012. Last year, foreclosures and short sales comprised 35.6 percent of all closed sales. In November 2013, these segments made up only 22.1 percent of all sales.

Click Here For The Full Article

Tuesday, December 17th, 2013

by The KCM Crew

Eric Belsky is Managing Director of the Joint Center of Housing Studies at Harvard University. He also currently serves on the editorial board of the Journal of Housing Research and Housing Policy Debate. This year he released a new paper on homeownership – The Dream Lives On: the Future of Homeownership in America. In his paper, Belsky reveals five financial reasons people should consider buying a home.

Here are the five reasons, each followed by an excerpt from the study:

1.) Housing is typically the one leveraged investment available. 

“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”

Click Here For The Full Article