News – Page 15

June 6, 2022

Weekly Market Report

For Week Ending May 28, 2022

Nationally, home sales and contract signings continue to soften compared to last year’s pace, while sellers are working quickly to list their homes and cash in on the remaining buyer demand. Realtor.com reports new listings are growing nearly twice as fast nationwide in May compared to this time a year ago, leading to a greater availability of homes for sale. As inventory inches upward and competition eases, sellers are having to adjust to the shifting landscape, with an increase in price reductions reported across many markets.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING MAY 28:

New Listings increased 0.1% at 1,608
Pending Sales decreased 15.4% to 1,451
Inventory increased 4.6% to 6,772

FOR THE MONTH OF APRIL:

Median Sales Price increased 10.0% to $370,000
Days on Market decreased 9.7% to 28
Percent of Original List Price Received increased 0.5% to 103.8%
Months Supply of Homes For Sale remained flat at 1.1

All comparisons are to 2021

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

May 31, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending May 21, 2022

Rental prices continue to soar to new highs, with the median rent reaching $1,827 as of last measure, a 16.7% increase from the same time last year, according to Realtor.com. Rental units are in short supply and demand remains high, with real estate professionals reporting a surge in rental inquiries, applications, and showing activity across the nation. Bidding wars are becoming increasingly common in many rental home markets, causing some properties to rent for substantially over asking price.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING MAY 21:

New Listings increased 3.4% to 2,008
Pending Sales decreased 8.7% to 1,490
Inventory increased 2.9% to 6,626

FOR THE MONTH OF APRIL:

Median Sales Price increased 10.0% to $370,000
Days on Market decreased 9.7% to 28
Percent of Original List Price Received increased 0.5% to 103.8%
Months Supply of Homes For Sale remained flat at 1.1

All comparisons are to 2021

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

May 23, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending May 14, 2022

With home prices and mortgage rates continuing to rise, down payments are increasing nationwide, as buyers aim to lower their monthly mortgage costs and make their offer more attractive to sellers. According to Realtor.com, buyers averaged a $28,000 down payment in the first quarter of 2022, averaging 13.1% of the purchase price, compared to the first quarter of 2020, when down payments averaged $14,000, with buyers paying about 11% of the purchase price.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING MAY 14:

New Listings decreased 6.2% to 1,875
Pending Sales decreased 19.3% to 1,280
Inventory decreased 2.9% to 6,152

FOR THE MONTH OF APRIL:

Median Sales Price increased 10.0% to $370,000
Days on Market decreased 9.7% to 28
Percent of Original List Price Received increased 0.5% to 103.8%
Months Supply of Homes For Sale remained flat at 1.1

All comparisons are to 2021

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

May 23, 2022

Filed Under: Monthly Skinny Video

April Monthly Skinny Video

May 19, 2022

Filed Under: The Skinny

Home prices hit $370,000 as rates push affordability to lowest level since 2004

Both pending and closed home sales were down about 9.0 percent from last April
Inventory was down 9.2 percent to 5,758 units, the twenty-fifth consecutive month of declines
Median Sales Price reached a record $370,000, up 10.0 percent from last year

(May 16, 2022) – According to new data from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, the Twin Cities metro area saw rising prices, fast market times and strong offers—often over asking price—during April. But rising mortgage rates have forced the affordability index below 100 for the first time since at least 2004.

HOME PRICES & INVENTORY

While the median home price rose 10.0 percent to reach a new record of $370,000—and will likely do so again over the next couple months—declines in affordability have continued to weigh on some buyers who are already fatigued from writing several offers. Historically low interest rates have been offsetting the effect of rising prices on monthly mortgage payments. But that’s quickly changing as the Federal Reserve races to combat high inflation by raising rates. Even so, the long-term average 30-year fixed mortgage rate is about 8.0 percent, above where we currently stand at around 5.2 percent. The affordability index fell to 95, meaning the median income was 95.0 percent of the necessary income needed to qualify for the median priced home under prevailing interest rates.

Despite affordability concerns, the supply-demand imbalance will likely keep prices firm. Some buyers may need to re-evaluate their target price to keep monthly payments at a level they’re comfortable with. We ended April with 5,758 homes on the market, 9.2 percent fewer than April 2021 and the twenty-fifth straight month of year-over-year inventory declines. This amounts to just 1.1 months’ supply of inventory, giving sellers the upper hand (a balanced market has four to six months’ supply). “Even with several justifiable concerns, this market continues to outperform,” according to Mark Mason, President of the Saint Paul Area Association of REALTORS®.

LISTINGS & SALES

Due to several factors, buyer activity has moderated somewhat. First, we’re comparing against the highs of the Covid housing craze from last spring. Second, inventory is even lower and further pressuring sales. Third, rising rates have likely taken some buyers out of the market. Buyers signed 9.2 percent fewer purchase agreements than April of last year and closed on 9.0 percent fewer homes. Sellers listed 7.0 percent fewer homes than last April. Sellers may feel attached to their interest rate and reluctant to list their homes to avoid higher interest rates.

While still high, it’s possible inflation has peaked. Financial experts report that annual inflation moderated for the first time in months. “It’s the rates and payment piece that is of concern to many of the buyers I work with,” said Denise Mazone, President of Minneapolis Area REALTORS®. “The reality is that people will need to buy and sell homes in any environment, but this really puts pressure on those who are on a budget.” Listings spent 9.7 percent fewer days on market than April 2021 on average. But the median days on market showed half of all homes went under contract in under 8 days, which is even with last April’s pace. This could be a sign of stabilization, yet sellers accepted offers 3.8 percent higher than their list price, on average.

LOCATION & PROPERTY TYPE

Market activity varies by area, price point and property type. New and existing home sales fell 3.5 and 8.0 percent, respectively. Single family sales fell 8.3 percent while condo sales rose 1.5 percent. Sales in Minneapolis declined 3.2 percent while Saint Paul sales fell 17.7 percent. The Longfellow, University, Summit Hill and West Seventh neighborhoods saw the largest sales gains while Hopkins, Mounds View, Wyoming and Somerset also had significant demand increases.

APRIL 2022 BY THE NUMBERS (COMPARED TO A YEAR AGO)

Sellers listed 7,046 properties on the market, a 7.0 percent decrease from last April
Buyers signed 5,693 purchase agreements, down 9.2 percent (4,706 closed sales, down 9.0 percent)
Inventory levels fell 9.2 percent to 5,758 units
Month’s Supply of Inventory remained level at 1.1 month (4-6 months is balanced)
The Median Sales Price rose 10.0 percent to $370,000
Days on Market fell 9.7 percent to 28 days, on average (median of 8 days, same as April 2021)
Changes in Sales activity varied by market segment
- Single family sales decreased 8.3 percent; Condo sales rose 1.5 percent & townhouse sales declined 10.9 percent
- Traditional sales were down 7.8 percent; foreclosure sales fell 24.2 percent; short sales were up 25.0 percent (from 4 to 5)
- Previously owned sales declined 8.0 percent; new construction sales fell 3.5 percent

April 2022 HOUSING CHARTS

From The Skinny Blog.

May 16, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending May 7, 2022

Demand for adjustable-rate mortgages (ARMs) is rising, as buyers look to mitigate higher monthly payments caused by record-high sales prices and surging mortgage interest rates. Although less popular than fixed rate mortgages, ARMs offer introductory rates lower than rates from conventional mortgages and currently represent 11% of mortgage loans, up from 3% at the beginning of the year, according to the Mortgage Bankers Association.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING MAY 7:

New Listings decreased 5.7% to 1,808
Pending Sales decreased 11.6% to 1,406
Inventory decreased 5.2% to 5,811

FOR THE MONTH OF APRIL:

Median Sales Price increased 10.0% to $370,000
Days on Market decreased 9.7% to 28
Percent of Original List Price Received increased 0.5% to 103.8%
Months Supply of Homes For Sale remained flat at 1.1

All comparisons are to 2021

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

May 9, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending April 30, 2022

70% of metropolitan areas saw the median existing-home sales price rise by double digits annually in the first quarter of 2022, up from 66% of metro areas in the previous quarter, according to the National Association of REALTORS® (NAR) latest quarterly report. In 27 U.S. markets, buyers needed at least $100,000 annual income to afford a 10% down payment, with first time buyers typically spending 28.4% of monthly income on mortgage payments, exceeding the 25% threshold NAR considers unaffordable.

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

New Listings decreased 4.8% to 1,731
Pending Sales decreased 9.3% to 1,424
Inventory decreased 6.9% to 5,576

FOR THE MONTH OF MARCH:

Median Sales Price increased 7.8% to $354,077
Days on Market decreased 10.3% to 35
Percent of Original List Price Received increased 0.8% to 102.7%
Months Supply of Homes For Sale remained flat at 1.0

All comparisons are to 2021
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

May 2, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending April 23, 2022

Home sales prices continue to reach new heights, and record gains in equity are motivating an increasing number of sellers to put their homes up for sale, according to Homelight’s 2022 Buyer and Seller Insights Report. With multiple offers common in many markets, many homeowners have high expectations when it comes to the sale of their home. More than 40% of sellers believe their home will sell for more than asking price, and about half of those surveyed expect to retain 30% or more of the sale price as a profit.

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

New Listings decreased 0.6% to 1,759
Pending Sales decreased 22.8% to 1,176
Inventory decreased 10.9% to 5,278

FOR THE MONTH OF MARCH:

Median Sales Price increased 7.8% to $354,000
Days on Market decreased 10.3% to 35
Percent of Original List Price Received increased 0.8% to 102.7%
Months Supply of Homes For Sale remained flat at 1.0

All comparisons are to 2021
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

April 25, 2022

Filed Under: Weekly Report

Weekly Market Report

For Week Ending April 16, 2022

Builder confidence softened for the fourth straight month in April, according to the National Association of Home Builders/Wells Fargo Housing Market Index, as escalating sales prices, higher construction costs, and increasing mortgage rates continue to impact housing affordability. With the average sales price of a new home upwards of $500,000 as of last measure, builders report sales traffic and sales conditions have fallen to their lowest points since last summer.

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

New Listings decreased 12.8% to 1,454
Pending Sales decreased 6.3% to 1,406
Inventory decreased 13.2% to 5,103

FOR THE MONTH OF MARCH:

Median Sales Price increased 7.8% to $354,000
Days on Market decreased 10.3% to 35
Percent of Original List Price Received increased 0.8% to 102.7%
Months Supply of Homes For Sale remained flat at 1.0

All comparisons are to 2021
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

April 25, 2022

Filed Under: Monthly Skinny Video