News – Page 12

November 14, 2022

Weekly Market Report

For Week Ending November 5, 2022

With the average 30-year fixed-rate mortgage hovering around 7%, interest in adjustable-rate mortgages (ARM) continues to grow, as buyers look to save money any way they can. Freddie Mac reports the rate for a 5/1 ARM was a full point lower than the popular 30-year loan the week ending 11/4/22, while the share of homebuyers applying for ARMs has increased significantly since the start of the year, representing about 12% of total applications, according to the Mortgage Bankers Association.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING NOVEMBER 5:

New Listings decreased 22.4% to 965
Pending Sales decreased 37.4% to 751
Inventory increased 7.8% to 8,858

FOR THE MONTH OF SEPTEMBER:

Median Sales Price increased 6.3% to $362,100
Days on Market increased 39.1% to 32
Percent of Original List Price Received decreased 2.3% to 98.9%
Months Supply of Homes For Sale increased 18.8% to 1.9

All comparisons are to 2021

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

November 7, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending October 29, 2022

Seller profits are beginning to ease, as home sales dip and sales prices soften nationwide. According to ATTOM, profit margins on median-priced single-family home and condo sales fell 3% from the second to the third quarter of 2022 in nearly 70% of the 186 metropolitan areas tracked, representing the largest quarterly decline since 2011. Despite the drop, investment returns remain historically high, with profits up compared to the same period last year.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING OCTOBER 29:

New Listings decreased 21.7% to 1,055
Pending Sales decreased 41.2% to 794
Inventory increased 5.4% to 9,015

FOR THE MONTH OF SEPTEMBER:

Median Sales Price increased 6.3% to $362,050
Days on Market increased 39.1% to 32
Percent of Original List Price Received decreased 2.3% to 98.9%
Months Supply of Homes For Sale increased 18.8% to 1.9

All comparisons are to 2021

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

October 31, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending October 22, 2022

As the housing market rebalances, many homeowners are finding they’re having to put more effort into selling their home to get the best deal possible compared to earlier in the pandemic, when conditions were different and a “For Sale” sign would often fetch multiple offers. Trends have changed, and with home sales down nationally, local REALTORS® are reporting a rise in price reductions, seller concessions, and homebuying contingencies, with a growing number of sellers needing to make repairs prior to sale.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING OCTOBER 22:

New Listings decreased 20.8% to 1,105
Pending Sales decreased 34.2% to 827
Inventory increased 4.6% to 9,059

FOR THE MONTH OF SEPTEMBER:

Median Sales Price increased 6.3% to $362,100
Days on Market increased 39.1% to 32
Percent of Original List Price Received decreased 2.3% to 98.9%
Months Supply of Homes For Sale increased 18.8% to 1.9

All comparisons are to 2021

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

October 27, 2022

Filed Under: Monthly Skinny Video

September Monthly Skinny Video

October 24, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending October 15, 2022

Median national rents fell slightly to $1,759 in September, marking the second consecutive month rents have dropped, according to a recent report from Realtor.com. Although median rents remain 7.8% higher than a year ago, it represents the smallest year-over-year increase and the slowest annual rate of growth since June 2021, suggesting the rental market may be cooling after the record-breaking pace of the last two years.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING OCTOBER 15:

New Listings decreased 14.0% to 1,266
Pending Sales decreased 37.3% to 835
Inventory increased 4.0% to 9,071

FOR THE MONTH OF SEPTEMBER:

Median Sales Price increased 6.3% to $362,050
Days on Market increased 39.1% to 32
Percent of Original List Price Received decreased 2.3% to 98.9%
Months Supply of Homes For Sale increased 18.8% to 1.9

All comparisons are to 2021

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

October 20, 2022

Filed Under: The Skinny

Rates push sales down further as home prices continue to grow

Buyer activity dropped 29.7 percent for pending sales and 23.9 percent for closings
Median sales price of Twin Cities homes rose 6.3 percent to $362,000
Sellers received 98.9 percent of their original list price, on average

(September 16, 2022) – According to new data from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, pending sales were down by over a quarter in September compared to last year. Sellers also accepted a smaller share of their asking price as their listings took longer to sell. Despite this, the homes that are selling are transacting at higher price points than last year.

Sales & Listings

Higher mortgage rates and historically strong demand in 2021 have pushed closed home sales down by double digits for four straight months. Last month had 3,969 signed purchase agreements, 29.6 percent short of 2021 levels and the lowest September figure since 2014. As the hyper-demand from the buying frenzy of the past two years wanes, those who remain in the market have regained some leverage.

“Our buyers can pause and breathe a bit— they no longer feel compelled to skip inspection or go way over list price,” according to Denise Mazone, President of Minneapolis Area REALTORS®. “But some sellers think they’re in the same position they were in a year ago, while some buyers think they’re going to get deals like it’s 2010. As usual, the truth is somewhere in the middle.”

Seller activity was down as many sellers remain apprehensive about also becoming buyers. Softening demand has meant homes linger on the market a bit longer—31 days on average or 34.8 percent longer than last September. Fewer homeowners are willing to relinquish their interest rates and list their homes. Sellers listed 6,002 properties on the market, 17.8 percent fewer than this time in 2021. Those that did list their homes tended to accept a smaller share of their asking price. But, they get to purchase in a less frenzied market.

Inventory & Home Prices

The median home price in the Twin Cities increased by 6.3 percent to $362,000. While still up, the growth is down from double-digit price gains seen in 2020 and 2021 and is the second smallest increase in two years. Although the rate of price growth is slowing, prices remain firm and resilient in the face of declining buyer activity. Housing supply levels remain tight, despite the recent market shifts. And, the softening in demand has been accompanied by a decline in new listings, so both sides have downshifted in tandem without creating the sort of asymmetry or imbalance that could abruptly shake up prices.

“Some might see a disconnect between lower demand and strong pricing right now.” said Mark Mason, President of the Saint Paul Area Association of REALTORS®. “While prices remain firm and resilient, the rebalancing we’ve seen means sellers shouldn’t expect dozens of offers at 10 percent or more above list price on the same day they list. Buyers may feel like they have a greater likelihood of success.”

September ended with 9,002 homes for sale, only 3 more units than last year. The momentum has been shifting back towards a more balanced marketplace (4-6 months of supply), but buyers should understand we are still in a seller’s market. Month’s supply of inventory rose 18.8 percent to 1.9 months.

Location & Property Type

Market activity varies by area, price point and property type. New home sales fell 0.2 percent while existing home sales were down 24.4 percent. Single family sales fell 22.1 percent, condo sales declined 19.8 percent and townhome sales were down 26.3 percent. Sales in Minneapolis decreased 14.7 percent while Saint Paul sales fell only 10.1 percent. Cities like Pine City, Corcoran, Rush City and Delano saw the largest sales gains while Clear Lake, Centerville, St. Anthony and River Falls all had lower demand than last year.

September 2022 Housing Takeaways (compared to a year ago)

Sellers listed 6,002 properties on the market, a 17.8 percent decrease from last September
Buyers signed 3,964 purchase agreements, down 29.7 percent (4,860 closed sales, down 23.9 percent)
Inventory levels were flat at 9,002 units
Month’s Supply of Inventory rose 18.8 percent to 1.9 months (4-6 months is balanced)
The Median Sales Price rose 6.3 percent to $362,000
Days on Market rose 34.8 percent to 31 days, on average (median of 19 days, up 58.3 percent)
Changes in Sales activity varied by market segment
- Single family sales decreased 22.1 percent; Condo sales were down 19.8 percent & townhouse sales fell 26.3 percent
- Traditional sales declined 23.1 percent; foreclosure sales rose 60.9 percent; short sales were up 50.0 percent (from 2 to 3)
- Previously owned sales decreased 24.4 percent; new construction sales declined 0.2 percent

From The Skinny Blog.

October 17, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending October 8, 2022

Mortgage application activity nationwide recently dropped to its lowest pace in 25 years, according to the Mortgage Bankers Association (MBA), with purchase and refinance applications down considerably compared to this time last year, when mortgage rates were hovering around 3%. The sharp increase in rates has caused mortgage applications for purchase to decline 39% compared to the same week a year ago.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING OCTOBER 8:

New Listings decreased 16.8% to 1,260
Pending Sales decreased 40.2% to 812
Inventory increased 1.7% to 8,959

FOR THE MONTH OF SEPTEMBER:

Median Sales Price increased 6.3% to $362,100
Days on Market increased 39.1% to 32
Percent of Original List Price Received decreased 2.3% to 98.9%
Months Supply of Homes For Sale increased 18.8% to 1.9

All comparisons are to 2021

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

October 13, 2022

Filed Under: Monthly Skinny Video

August Monthly Skinny Video

October 10, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending October 1, 2022

U.S. home prices are falling at the fastest rate since January 2009, according to recent data from Black Knight, as shifting market conditions have led many sellers to lower their asking price. Nationally, median home prices fell by 0.98% from July to August, marking the second consecutive month prices have declined. Although home prices are down 2% from their peak in June, they remain up 12.1 % compared to the same period last year.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING OCTOBER 1:

New Listings decreased 20.0% to 1,271
Pending Sales decreased 36.5% to 895
Inventory decreased 0.8% to 8,934

FOR THE MONTH OF AUGUST:

Median Sales Price increased 5.7% to $369,900
Days on Market increased 22.7% to 27
Percent of Original List Price Received decreased 2.4% to 99.9%
Months Supply of Homes For Sale increased 20.0% to 1.8

All comparisons are to 2021

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

October 3, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending September 24, 2022

Lumber prices plunged to their lowest level in more than two years following the Federal Reserve’s 75-basis-point rate hike last week, as soaring mortgage interest rates and the slowdown in the US housing market have caused lumber demand to cool rapidly this year. The Wall Street Journal reports lumber futures are down about one-third from a year ago and have fallen more than 70% from this year’s peak in March.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING SEPTEMBER 24:

New Listings decreased 20.2% to 1,273
Pending Sales decreased 29.4% to 983
Inventory increased 0.4% to 9,039

FOR THE MONTH OF AUGUST:

Median Sales Price increased 5.7% to $369,900
Days on Market increased 22.7% to 27
Percent of Original List Price Received decreased 2.4% to 99.9%
Months Supply of Homes For Sale increased 20.0% to 1.8

All comparisons are to 2021

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