News

April 22, 2024

Weekly Market Report

For Week Ending April 13, 2024

Amid higher borrowing costs, mortgage rate buydowns have become an increasingly popular choice among homebuyers looking to save some money on the purchase of their next home. According to a recent study by Freddie Mac, about 58.8% of purchase borrowers paid discount points last year, up from 53.6% and 31.3% of purchase borrowers in 2022 and 2021, respectively. Regionally, borrowers in the Pacific and Mountain West were more likely to pay points compared to borrowers in the Midwest and parts of the Northeast.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING APRIL 13:

New Listings increased 9.4% to 1,487
Pending Sales increased 13.7% to 995
Inventory increased 15.7% to 7,270

FOR THE MONTH OF MARCH:

Median Sales Price increased 2.8% to $366,000
Days on Market decreased 6.9% to 54
Percent of Original List Price Received increased 0.2% to 98.8%
Months Supply of Homes For Sale increased 26.7% to 1.9

All comparisons are to 2023

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

April 22, 2024

Filed Under: Monthly Skinny Video

March Monthly Skinny Video

April 18, 2024

Filed Under: The Skinny

March Housing Market Report

Spring market continues budding; buyers seeing more options

Signed purchase agreements rose 7.8%; new listings up 4.0%
The median sales price increased 2.8% to $366,000
Market times fell 6.9% to 54 days; inventory up 8.4% to 6,879

(Apr. 15, 2024) – According to new data from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, both buyer and seller activity rose in March. Inventory levels and prices were also higher.

Sellers, Buyers and Housing Supply
With warmer temperatures comes heightened home buyer and seller activity. Metro-wide, we’ve now seen five consecutive year-over-year increases in new listings and four consecutive increases in pending sales. During the first quarter (YTD), seller activity rose 17.9% while pending sales were up 9.4%. That’s allowed inventory levels to also rise—most recently up 8.4% to 6,879 active listings. While buyers can expect to see more listings in their searches, most areas and sub-markets still favor sellers. There is a good amount of pent-up activity from buyers and sellers that’s been accumulating from when rates jumped. The backlog is starting to be released as more consider making a move. In some ways, residents of the Twin Cities are adjusting to the higher rate environment, but low supply and rising prices combined with higher rates have held back too many from homeownership—particularly first-time buyers without the equity from their first home. Move-up buyers and those looking at pricier segments are less rate-sensitive and so activity is rising more quickly higher up on the price spectrum.

Prices, Market Times and Negotiations
Perhaps surprisingly, REALTORS® still report multiple offer situations in some markets and price points. If rates were to ease further toward 6.0%, that will continue. Listings spent 6.9% fewer days on market compared to last March. And sellers accepted offers at 98.8% of their asking price, up 0.2% from last year. “It’s clear that people are ready and eager to get deals done,” said Jamar Hardy, President of Minneapolis Area REALTORS®. “But even a few months of increases in available listings doesn’t mean the housing shortage is behind us. We’re still having to be persistent, strategic and creative when it comes to getting people into homes.”

Supply levels are too low for prices to fall but rates are too high for prices to rise much. The median home price in March was up 2.8% to $366,000 which amounts to $208 per finished square foot. During the month, sellers accepted offers on their listings after an average of 54 days (median of 24) compared to 58 days last March. Sellers are still in a relatively strong position, but some are having to make concessions by way of a price reduction, seller paid closing costs and other incentives.

“We’re in a unique place. The market remains tight even as we see it loosening a bit with more inventory and more buyers coming out to shop,” said Amy Peterson, President of the Saint Paul Area Association of REALTORS®. “A market like this is never monolithic. Every price point, segment and area are different—sometimes very different. That’s why it’s important to partner with an experienced real estate professional.”

Location & Property Type
Market activity always varies by area, price point and property type. Existing home sales rose faster than new home sales. Single family sales rose while condo and townhome sales declined. Sales over $500,000 rose at over five times the rate of sales under $500,000. Cities such as Robbinsdale, Columbia Heights and Corcoran saw among the largest sales gains while Forest Lake, Victoria and Delano all had notably weaker demand. For cities with at least five sales, the highest priced areas were Medina, Lake Elmo and Orono while the most affordable areas were Red Wing, Mora, Columbia Heights and Faribault.

March 2024 Housing Takeaways (compared to a year ago)

Sellers listed 5,261 properties on the market, a 4.0% increase from last March
Buyers signed 4,028 purchase agreements, up 7.8% (3,238 closed sales, down 0.9%)
Inventory levels rose 8.4% to 6,879 units
Month’s Supply of Inventory rose 20.0% to 1.8 months (4-6 months is balanced)
The Median Sales Price was up 2.8% to $366,000
Days on Market was down 6.9% to 54 days, on average (median of 24 days, down 11.1%)
Changes in Pending Sales activity varied by market segment and price point
- Single family sales rose 12.8%; condo sales were down 15.6%; townhouse sales decreased 1.2%
- Traditional sales were up 8.0%; foreclosure sales fell 11.9% to 37; short sales rose 11.1% to 10
- Previously owned sales increased 8.9%; new construction sales were up 2.3%
- Sales under $500,000 rose 3.9%; sales over $500,000 increased 20.3%
From The Skinny Blog.

April 15, 2024

Filed Under: Weekly Report

Weekly Market Report

For Week Ending April 6, 2024

The share of homebuyers who paid cash for their home reached a 10-year high recently, according to the National Association of REALTORS®, with cash buyers accounting for 32% of all home purchases in January. Real estate investors and vacation-home buyers made up the majority of cash buyers during the past 6 months; among those consumers who paid cash for a home purchase last year, 26% were repeat buyers, while just 6% were first-time buyers.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING APRIL 6:

New Listings increased 32.2% to 1,383
Pending Sales decreased 0.7% to 892
Inventory increased 13.4% to 7,048

FOR THE MONTH OF FEBRUARY:

Median Sales Price increased 4.6% to $358,000
Days on Market decreased 3.3% to 59
Percent of Original List Price Received increased 0.3% to 97.5%
Months Supply of Homes For Sale increased 35.7% to 1.9

All comparisons are to 2023

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

April 9, 2024

Filed Under: Weekly Report

Weekly Market Report

For Week Ending March 30, 2024

U.S. residential housing starts jumped 10.7% from the previous month to a seasonally adjusted annual rate of 1.521 million units, led by a surge in single-family starts, which increased 11.6% to 1.129 million units from the previous month, according to the U.S. Census Bureau. Meanwhile, overall housing completions rose 19.7% to a seasonally adjusted annual rate of 1.729 million units, the highest level since January 2007.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING MARCH 30:

New Listings decreased 10.4% to 1,014
Pending Sales decreased 1.1% to 933
Inventory increased 12.0% to 7,029

FOR THE MONTH OF FEBRUARY:

Median Sales Price increased 4.6% to $358,000
Days on Market decreased 3.3% to 59
Percent of Original List Price Received increased 0.3% to 97.5%
Months Supply of Homes For Sale increased 28.6% to 1.8

All comparisons are to 2023

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

April 1, 2024

Filed Under: Weekly Report

Weekly Market Report

For Week Ending March 23, 2024

Housing inventory continues to improve nationwide, climbing 14.8% year-over-year according to Realtor.com’s February 2024 Monthly Housing Market Trends Report. New listings increased 11.3% year-over-year, while the total number of unsold homes rose 8.8% compared to the same period last year. Of particular note was the rise in inventory of homes in the $200,000 to $350,000 price range, which grew 20.6% annually, outpacing all other price categories.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING MARCH 23:

New Listings increased 8.8% to 1,170
Pending Sales increased 11.3% to 939
Inventory increased 13.3% to 7,067

FOR THE MONTH OF FEBRUARY:

Median Sales Price increased 4.6% to $358,000
Days on Market decreased 3.3% to 59
Percent of Original List Price Received increased 0.3% to 97.5%
Months Supply of Homes For Sale increased 28.6% to 1.8

All comparisons are to 2023

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

March 28, 2024

Filed Under: Monthly Skinny Video

February Monthly Skinny Video

March 25, 2024

Filed Under: Weekly Report

Weekly Market Report

For Week Ending March 16, 2024

The U.S. homeownership rate declined in the fourth quarter of 2023, sliding 0.3% from the third quarter to 65.7% at year’s end, according to the Census Bureau’s Housing Vacancy Survey, as higher interest rates and a limited supply of inventory put homeownership out of reach for some buyers. The latest reading fell short of the 25-year average rate of 66.4%, with the less than 35 age group experiencing the largest quarterly decline in homeownership rate, at 0.6%.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING MARCH 16:

New Listings increased 25.7% to 1,310
Pending Sales increased 11.8% to 935
Inventory increased 13.3% to 6,989

FOR THE MONTH OF FEBRUARY:

Median Sales Price increased 4.6% to $358,000
Days on Market decreased 3.3% to 59
Percent of Original List Price Received increased 0.3% to 97.5%
Months Supply of Homes For Sale increased 28.6% to 1.8

All comparisons are to 2023

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

March 18, 2024

Filed Under: The Skinny

February Housing Market Report

Spring market blossoming early amid signs of turnaround

The median sales price increased 4.5% to $357,700
Signed purchase agreements rose 13.1%; new listings up 34.5%
Market times fell 3.3% to 59 days; inventory up 13.3% to 6,665

(Mar. 18, 2024) – According to new data from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, both buyer and seller activity rose in February. Homes also sold in less time and at higher prices.

Sellers, Buyers and Housing Supply
With four consecutive year-over-year increases in new listings and three consecutive year-over-year increases in pending sales, the market turnaround narrative is gaining traction. While inventory levels were up, potential buyers should understand that the market remains significantly undersupplied. In February, sellers listed 34.5% more homes on the market and buyers signed 13.1% more purchase agreements. Sellers unwilling to give up their favorable mortgage rate have withheld listings due to the “rate lock-in effect” but now there is a backlog and we’re seeing some of that activity being released. Buyers had also delayed their purchases until rates came down or until they had some earnings growth, were more able to save for a downpayment and saw more inventory that met their needs. While supply and demand normalize, buyer and seller activity won’t immediately return to previous highs. That will take time—but just how much depends on both market and economic factors. Since these seemingly strong gains are skewed by a low baseline period, it’s not that activity has surged recently as much as activity declined last year at this time due to the Federal Reserve’s inflation fight and rate hikes.

Inventory levels are on the rise in the metro, up 13.3% compared to last February. Those out shopping for homes during this spring market should expect both more listings from pent-up sellers but also more competition from pent-up buyers. In that sense, activity levels will be higher but the balance between supply and demand will remain tight. But if rates do fall further, that could induce even more demand which would cause a resurgence in multiple offer situations and homes selling for over list price. “Perhaps it’s still early to make the call, but it sure feels like we’ve reached a turning point,” said Jamar Hardy, President of Minneapolis Area REALTORS®. “Despite the market ramping up, buyers are still cautious and deliberate but also more optimistic.”

Prices, Market Times and Negotiations
Supply levels are too low for prices to fall but rates are too high for prices to rise much. The median sales price rose 4.5% to $357,700, which amounted to $203 per square foot. During the month, sellers accepted offers at 97.5% of list price after 59 days compared to 97.2% in 61 days last February. Sellers still enjoy pricing power and the upper hand in general but some are having to make concessions by way of price reductions, some seller paid closing costs and other tactics. “There is definitely some momentum heading into spring market,” said Amy Peterson, President of the Saint Paul Area Association of REALTORS®. “But turnarounds rarely happen overnight. Builders play a key role, lenders are being more innovative and consumers are persistent and more realistic.”

Location & Property Type
Market activity always varies by area, price point and property type. New home sales rose at over twice the rate of existing home sales. Single family sales rose at over twice the rate as townhomes. Sales over $500,000 rose at over three times the rate of sales under $500,000. Cities such as Shorewood, Forest Lake, Minnetrista and New Richmond saw among the largest sales gains while Crystal, Andover, Buffalo and Inver Grove Heights all had notably weaker demand. For cities with at least five sales, the highest priced areas were Medina, Orono, North Oaks and Lake Elmo while the most affordable areas were Red Wing, Zumbrota and Vadnais Heights.

February 2024 Housing Takeaways (compared to a year ago)

Sellers listed 4,667 properties on the market, a 34.5% increase from last February
Buyers signed 3,308 purchase agreements, up 13.1% (2,614 closed sales, up 11.2%)
Inventory levels rose 13.3% to 6,665 units
Month’s Supply of Inventory rose 28.6% to 1.8 months (4-6 months is balanced)
The Median Sales Price was up 4.5% to $357,700
Days on Market was down 3.3% to 59 days, on average (median of 38 days, down 13.6%)
Changes in Pending Sales activity varied by market segment
- Single family sales rose 16.8%; condo sales were up 5.4%; townhouse sales increased 7.0%
- Traditional sales were up 12.8%; foreclosure sales rose 45.5% to 48; short sales were up 37.5% to 11
- Previously owned sales increased 11.0%; new construction sales rose 26.6%
- Sales under $500,000 were up 8.9%; sales over $500,000 increased 30.3%
From The Skinny Blog.

March 18, 2024

Filed Under: Weekly Report

Weekly Market Report

For Week Ending March 9, 2024

Mortgage rates fell for the first time in five weeks, as the average 30-year fixed rate mortgage slid 0.06 percentage points to 6.88% the week ending March 7, 2024, according to Freddie Mac. The decline in rates helped mortgage applications increase 7.1% on a seasonally adjusted basis from the previous week, according to the Mortgage Bankers Association, while applications to purchase a home were up 5% from the previous week.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING MARCH 9:

New Listings increased 24.9% to 1,313
Pending Sales increased 11.6% to 898
Inventory increased 11.9% to 6,793

FOR THE MONTH OF FEBRUARY:

Median Sales Price increased 4.6% to $358,000
Days on Market decreased 3.3% to 59
Percent of Original List Price Received increased 0.3% to 97.5%
Months Supply of Homes For Sale increased 28.6% to 1.8

All comparisons are to 2023

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