News – Page 13

October 10, 2022

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.

September 29, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending September 17, 2022

Mortgage rates topped 6% the week ending 9/15, as hotter-than-expected inflation helped push rates to their highest level since 2008 amid growing recession concerns. According to Freddie Mac, mortgage rates are now double what they were this time last year, squeezing homebuyer budgets and causing home sales to slow under the weight of rising borrowing costs.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING SEPTEMBER 17:

New Listings decreased 20.5% to 1,424
Pending Sales decreased 31.3% to 908
Inventory increased 1.3% to 8,962

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.

September 29, 2022

Filed Under: The Skinny

Home price growth slows as market times rise and demand cools

Median sales price was up just 5.6 percent to $369,750, the smallest gain since June 2020
Buyer activity pulled back as pending sales fell 23.8 percent
Homes took 26 days to sell, 18.2 percent longer than the 22 days last August

(September 16, 2022) – According to new data from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, both sales and listing activity were down in August while home price growth has slowed to its lowest level in two years but remains positive. Sellers also accepted lower offers as market times rose.

Inventory & Home Prices

The median home price in the Twin Cities reached $369,750 but the year-over-year growth rate is slowing. While prices are not falling, they’re not rising as quickly as they were. The 5.6 percent price growth in August is below the roughly 8.0 to 16.0 percent gains seen over the last two years. The deceleration in price growth likely reflects the pullback in demand caused by higher interest rates and economic uncertainty. Closed sales were down 20.3 percent in August compared to last year. Buyers also still face low inventory and limited options, although there’s evidence that’s changing.

“We’re seeing a less competitive landscape as the market has slowed given current interest rates,” said Denise Mazone, President of Minneapolis Area REALTORS®. “But the silver lining is that a less frenzied market could spell more inventory and opportunity for persistent buyers.”

August ended with 8,552 homes for sale, nearly flat compared to last year. Although the region is still a seller’s market, the momentum has been shifting back towards a more balanced marketplace. Month’s supply of inventory rose 13.3 percent to 1.7 months.

Sales & Listings

Buyer activity has softened compared to recent years. This is partly caused by higher mortgage rates, but it also reflects demand being pulled forward (i.e. sales that would’ve occurred in 2022/23 instead took place in 2020/21). August showed 4,981 signed purchase agreements, 23.8 percent short of 2021 levels and the lowest August figure since 2014. But seller activity reached its lowest level since August 2012. The easing of demand has impacted how quickly homes sell. Homes remained on market for an average of 26 days, 18.2 percent longer than last August.

“Sellers may notice that their homes are taking an extra few days to go under contract,” according to Mark Mason, President of the Saint Paul Area Association of REALTORS®. “But nobody talks about the fact that even this slower pace is still fast historically. A cooling of red-hot demand and a less intense landscape means a more sustainable and accessible marketplace.”

Sellers listed 6,186 properties on the market, 19.9 percent fewer than last August. Many Baby Boomers are choosing to age in place and aren’t listing their homes. Some homeowners are reluctant to trade into a higher mortgage rate on a higher priced home given economic uncertainty. And, some sellers are choosing to wait given their lack of options once their home sells. The industry has also underbuilt housing for about 15 years, and it will take time to rise out of that deficit.

Location & Property Type

Market activity varies by area, price point and property type. New home sales fell 11.0 percent while existing home sales were down 20.3 percent. Single family sales fell 19.7 percent, condo sales declined 26.7 percent and townhome sales were down 17.4 percent. Sales in Minneapolis decreased 23.3 percent while Saint Paul sales fell 18.9 percent. Cities like Monticello, Golden Valley, and Orono saw the largest sales gains while Stillwater, Chanhassen, and Fridley had lower demand than last year.

August 2022 Housing Takeaways (compared to a year ago)

Sellers listed 6,186 properties on the market, a 19.9 percent decrease from last August
Buyers signed 4,981 purchase agreements, down 23.8 percent (5,568 closed sales, down 20.3 percent)
Inventory levels dropped 1.3 percent to 8,552 units
Month’s Supply of Inventory rose 13.3 percent to 1.7 months (4-6 months is balanced)
The Median Sales Pricerose 5.6 percent to $369,750
Days on Market rose 18.2 percent to 26 days, on average (median of 15 days, up 50.0 percent)
Changes in Sales activity varied by market segment
- Single family sales decreased 19.7 percent; Condo sales were down 26.7 percent & townhouse sales fell 17.4 percent
- Traditional sales declined 20.0 percent; foreclosure sales fell 20.8 percent; short sales were up 40.0 percent (from 5 to 7)
- Previously owned sales decreased 20.3 percent; new construction sales declined 11.0 percent

From The Skinny Blog.

August 29, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending August 20, 2022

Rents continue to soar to new highs amid low vacancy rates, with the median rent hitting $1,879 in the 50 largest U.S. metropolitan areas in July, a 12.3% increase from the same time last year, according to a recent report from Realtor.com. Although rents remain elevated, rent growth appears to be slowing, having increased only $3 from June to July, with tenants in urban areas typically seeing higher rent hikes compared to those in the suburbs.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING AUGUST 20:

New Listings decreased 27.3% to 1,326
Pending Sales decreased 23.5% to 1,138
Inventory increased 5.1% to 8,953

FOR THE MONTH OF JULY:

Median Sales Price increased 7.1% to $375,000
Days on Market increased 15.8% to 22
Percent of Original List Price Received decreased 2.0% to 101.5%
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.

August 29, 2022

Filed Under: Monthly Skinny Video

July Monthly Skinny Video

August 22, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending August 13, 2022

After declining for three consecutive quarters, the share of homebuyers actively searching for a home grew to 49% nationally in the second quarter of 2022, up from 46% the previous quarter, according to the National Association of Home Builders (NAHB) recent Housing Trends Report. NAHB economists credit the rise in buyer activity to a less competitive housing market, which has motivated more prospective buyers to advance from the planning stage of the homebuying process to actively trying to purchase a home.

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

New Listings decreased 16.0% to 1,480
Pending Sales decreased 22.6% to 1,173
Inventory increased 5.4% to 8,948

FOR THE MONTH OF JULY:

Median Sales Price increased 7.1% to $375,000
Days on Market increased 15.8% to 22
Percent of Original List Price Received decreased 2.0% to 101.5%
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.

August 18, 2022

Filed Under: The Skinny

Higher rates continue to cool demand, home prices still on the rise

Median sales price was up 7.1 percent to $375,000, the slowest increase since June 2020
Buyer activity was down, pending sales fell 23.3 percent
Homes took 22 days to sell, 15.8 percent longer than the 19 days last July

(August 15, 2022) – According to new data from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, buyers in the Twin Cities have struggled to keep pace with the highs of 2021. Pending sales were down 23.3 percent in July compared to last year as buyers signed 4,807 purchase agreements. Buyers have been hampered by increased mortgage rates, still-low inventory, strong home prices and some economic uncertainty.

Sales & Listings

Buyer activity has been softening for 11 of the last 12 months as most acknowledge the frenzied demand of 2020 and 2021couldn’t last. July’s pending sales volume was 12.8 percent lower than July of 2019, reflecting affordability and supply challenges but also hinting at how demand was expedited from 2022/3 into 2020/1. “Many Twin Citizens eager to take advantage of historically low rates and purchase a home leapt at the chance,” said Denise Mazone, President of Minneapolis Area REALTORS®. “Combined with rising rates, that’s left a hole in our buyer pool this year, but there is still plenty of pent-up demand for homes. Plus there’s evidence rates are easing somewhat.” There has not been an influx of supply onto the market. Home sellers listed 6,845 homes last month, down 17.0 percent from last July. Selling activity has been fairly stable overall since 2020, but continuously lagging behind the supply needed to fuel the market demand, until the recent slowdown in sales.

Inventory & Home Prices

Homes in the metro sold for a median of $375,000 last month, 7.1 percent more than last July. That was the slowest growth rate in two years and amounts to $205 per square foot. The recent downshift in buyer activity has offered a small reprieve for persistent buyers thirsty for inventory and less competition. The metro ended July with 8,694 homes for sale, 4.5 percent more than last July. In a welcome development for buyers, inventory levels have grown for three consecutive months and months supply rose to 1.7. That suggests the supply squeeze is loosening but it’s important to recognize we’re still in a strong seller’s market. “Aspiring home buyers still face competition and multiple offers, just slightly less so than the last couple years, “according to Mark Mason, President of the Saint Paul Area Association of REALTORS®. “So while the market has rebalanced slightly, it still favors sellers.”

Location & Property Type

Market activity varies by area, price point and property type. New home sales fell 18.8 percent while existing home sales were down 16.4 percent. Single family sales fell 18.1 percent, condo sales declined 24.5 percent and townhome sales were down 20.8 percent. Sales in Minneapolis decreased 17.5 percent while Saint Paul sales fell 25.0 percent. Cities like Monticello, Golden Valley, and Orono saw the largest sales gains while Stillwater, Chanhassen, and Fridley had lower demand than last year.

July 2022 Housing Takeaways (compared to a year ago)

Sellers listed 6,845 properties on the market, a 17.0 percent decrease from last July
Sellers signed 4,807 purchase agreements, down 23.3 percent (5,442 closed sales, down 20.2 percent)
Sellers levels grew 4.5 percent to 8,694 units
Month’s Supply of Inventory rose 13.3 percent to 1.7 months (4-6 months is balanced)
The Median Sales Price rose 7.1 percent to $375,000
Days on Market rose 15.8 percent to 22 days, on average (median of 11 days, up 57.1 percent)
Changes in Sales activity varied by market segment
- Single family sales decreased 18.1 percent; Condo sales were down 24.5 percent & townhouse sales fell 20.8 percent
- Traditional sales declined 18.9 percent; foreclosure sales fell 12.5 percent; short sales were down 14.3 percent
- Previously owned sales decreased 16.2 percent; new construction sales declined 18.8 percent

From The Skinny Blog.

August 15, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending August 6, 2022

The average 30-year fixed rate mortgage dropped to 4.99% the week ending 8/4, marking the first time since April rates have dipped below 5%, according to Freddie Mac. With rates down the past two weeks, the Mortgage Bankers Association reports mortgage applications rose slightly from the previous week, including an uptick in refinance applications, as buyers took advantage of the opportunity to lock in lower rates and save on their monthly mortgage payment.

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

New Listings decreased 21.7% to 1,560
Pending Sales decreased 23.1% to 1,118
Inventory increased 7.8% to 8,818

FOR THE MONTH OF JULY:

Median Sales Price increased 7.1% to $375,000
Days on Market increased 15.8% to 22
Percent of Original List Price Received decreased 2.0% to 101.5%
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.

August 8, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending July 30, 2022

As housing supply continues to increase across the country, prospective buyers’ housing expectations are on the rise as well, with the National Association of Home Builders (NAHB) reporting the share of prospective buyers expecting their home search to be easier in the coming months climbed to 22% in the second quarter, up from 17% in the first quarter. The NAHB attributes the improved outlook among buyers to increases in inventory and a decline in buyer competition.

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

New Listings decreased 24.5% to 1,443
Pending Sales decreased 22.4% to 1,171
Inventory increased 10.3% to 8,830

FOR THE MONTH OF JUNE:

Median Sales Price increased 8.6% to $380,000
Days on Market increased 5.0% to 21
Percent of Original List Price Received decreased 0.8% to 103.3%
Months Supply of Homes For Sale increased 23.1% to 1.6

All comparisons are to 2021

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