News – Page 19

December 13, 2021

Weekly Market Report

For Week Ending December 4, 2021

The latest REALTORS® Confidence Index Survey found that, nationally, sellers of homes that closed in October saw 3.7 offers on average, which was up from 3.4 offers on average a year ago. The survey also found the typical buyer had made two unsuccessful offers before securing their new home, and that first-time buyers accounted for 29% of existing-home buyers, down from 32% a year ago. Cash purchases rose to 24% of sales from 19% one year ago, and non-primary residence buyers (investors and second home buyers) rose to 17% from 14% in 2020.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING DECEMBER 4:

New Listings decreased 1.0% to 860
Pending Sales decreased 12.5% to 907
Inventory decreased 16.1% to 6,297

FOR THE MONTH OF OCTOBER:

Median Sales Price increased 7.9% to $340,000
Days on Market decreased 22.9% to 27
Percent of Original List Price Received decreased 0.2% to 100.3%
Months Supply of Homes For Sale decreased 17.6% to 1.4

All comparisons are to 2020

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

December 6, 2021

Filed Under: Weekly Report

Weekly Market Report

For Week Ending November 27, 2021

With showings, contract signings, and closed sales remaining strong throughout fall, experts are expecting an especially busy housing market this winter, as buyers rush to beat rising rental prices and anticipated increases in mortgage rates. Total existing home sales will top 6 million in 2021, the highest level in 15 years, according to the National Association of REALTORS®, who predicts home prices will continue to increase in 2022, albeit at a gentler rate compared to the recordsetting pace of this year.

IN THE TWIN CITIES REGION, FOR THE WEEK ENDING NOVEMBER 27:

New Listings decreased 15.8% to 496
Pending Sales decreased 0.8% to 843
Inventory decreased 15.7% to 6,714

FOR THE MONTH OF OCTOBER:

Median Sales Price increased 7.9% to $340,000
Days on Market decreased 22.9% to 27
Percent of Original List Price Received decreased 0.2% to 100.3%
Months Supply of Homes For Sale decreased 17.6% to 1.4

All comparisons are to 2020

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

November 29, 2021

Filed Under: Weekly Report

Weekly Market Report

For Week Ending November 20, 2021

Consumer credit scores have risen since the beginning of the pandemic, according to FICO CEO William Lansing in a recent interview with MarketWatch. The average score across all segments rose eight points to 716, while consumers with scores below 600 saw a larger average increase, rising from 581 in April 2020 to 601 today. Pandemic-related relief programs and a decrease in consumer spending early in the pandemic are likely contributors to the improvement in scores. Higher credit scores can offer home buyers more loan options as well as lower interest rates, which can increase affordability and purchasing power.

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

New Listings decreased 7.9% to 948
Pending Sales increased 1.2% to 1,154
Inventory decreased 15.5% to 7,042

FOR THE MONTH OF OCTOBER:

Median Sales Price increased 7.9% to $340,000
Days on Market decreased 22.9% to 27
Percent of Original List Price Received decreased 0.2% to 100.3%
Months Supply of Homes For Sale decreased 17.6% to 1.4

All comparisons are to 2020

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

November 22, 2021

Filed Under: Weekly Report

Weekly Market Report

For Week Ending November 13, 2021

The Federal Housing Finance Agency may soon increase conforming loan limits, according to the Wall Street Journal, with Fannie Mae and Freddie Mac expected to back mortgage loans close to $1 million dollars in high-cost markets, and loans up to $650K in other markets, beginning in 2022. The final loan limits are expected to be announced November 30th. The projected increases are meant to keep pace with the historic rise of sales prices in the last year. Conforming loans often offer lower interest rates and smaller down payments, making it more affordable and easier for some borrowers to purchase a home.

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

New Listings increased 9.3% to 1,100
Pending Sales increased 2.5% to 1,173
Inventory decreased 14.3% to 7,466

FOR THE MONTH OF OCTOBER:

Median Sales Price increased 7.9% to $340,000
Days on Market decreased 22.9% to 27
Percent of Original List Price Received decreased 0.2% to 100.3%
Months Supply of Homes For Sale decreased 17.6% to 1.4

All comparisons are to 2020

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

November 22, 2021

Filed Under: Monthly Skinny Video

October Monthly Skinny Video

Months’ supply of inventory was down 23.5 percent to 1.3 months. A balanced market is about 5-6 months of supply. 1.3 months of supply indicates a pretty extreme sellers’ market.

November 18, 2021

Filed Under: The Skinny

A decade-long seller’s market in the Twin Cities still going strong

(November 16, 2021) – According to new data from Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, the median sales price in the Twin Cities rose 7.9 percent from October 2020 to $340,000. Despite the housing shortage, price growth is returning to more typical levels even as we mark 10 full years of a sellers’ market.

New listings in the metro fell 11.5 percent from last October and are 1.5 percent below their 2019 level. While pending sales also dipped 10.2 percent from last year, buyer activty is up 11.9 percent from 2019. Closed sales were also down from 2020 but up from 2019. Last month also marked the Twin Cities’ 10th straight year in a metro-wide seller’s market. We’ve had under 5.0 months supply of inventory for every month of every year since November 2011. Over the last year, however, we’ve seen those absorption rates contract to 1.0 month of supply. Six months of supply is considered a balanced market. The three primary drivers of this is strong demand, weak listing activity and tight inventory levels.

“We’re still stuck in this period of apples-to-oranges year-over-year comparisons where we’re up against a uniquely strong pandemic market,” said Todd Walker, President of Minneapolis Area REALTORS®. “And as inflation concerns grow, cash downpayment savings can lose value. As rates rise, it’s possible some buyers move up their purchase timeline.” As we embrace fall and begin to cool down seasonally, listings tend to take longer to sell than in spring or summer. Half of the listings in the metro area sold in fewer than 14 days. While that pace is flat from last year, time on market is down 44.0 percent from 2019, and 14 days is a record fast pace for any October going back to 2007 and likely earlier. Sellers accepted, on average, 100.3 percent of their list price, down slightly from last October.

Inventory levels were down 16.2 percent compared to a 40.5 percent decline back in May. “Pricing has remained firm from all the demand still in the market as well as the supply squeeze,” according to Tracy Baglio, President of the Saint Paul Area Association of REALTORS®. “While still rising, the rate of year-over-year price growth has slowed from 16.6 percent in May to around 8.0 percent last month.”

Market activity varies by area, price point and property type. Home sales more than doubled in Loring Park and Bryant and doubled in the Folwell and Lyndale neighborhoods, but fell between 60.0 and 80.0 percent in Kenwood, Kenny and Armatage. Sales in Centerville rose 83.3 percent and 46.7 percent in Princeton but fell 71.4 percent in Wayzata and 61.3 percent in New Prague. The price range with the largest gain in demand was the $1M+ luxury sector, where sales have surged 47.3 percent over the last 12 months. Sales between $150,000 and 190,000 dropped 30.1 percent. In August, closed sales in Minneapolis reached their highest level since 2005, marking a 16-year high for housing demand in the city. Though a small share overall, condo sales rose more than any other property type over the last year.

October 2021 by the numbers compared to a year ago

Sellers listed 6,192 properties on the market, an 11.5 percent decrease from last October
Buyers signed 5,745 purchase agreements, down 10.2 percent (5,962 closed sales, down 16.2 percent)
Inventory levels fell 16.2 percent to 7,657 units
Month’s Supply of Inventory was down 17.6 percent to 1.4 months (4-6 months is balanced)
The Median Sales Price rose 7.9 percent to $340,000
Days on Market decreased 22.9 percent to 22 days, on average (median of 14 days, level with October 2020)
Changes in Sales activity varied by market segment
- Condo sales rose 3.8 percent, while single family & townhouse sales fell 18.8 percent and 11.5 percent respectively
- Traditional sales were down 15.5 percent; foreclosure sales were down 61.4 percent; short sales fell 45.5 percent
- Previously owned sales dropped 14.5 percent; new construction sales decreased by 28.6 percent
All information is according to the Minneapolis Area REALTORS® and Saint Paul Area Association of REALTORS based on data from NorthstarMLS. We serve the Twin Cities 16-county metro area and western Wisconsin.

From The Skinny Blog.

November 15, 2021

Filed Under: Weekly Report

Weekly Market Report

For Week Ending November 6, 2021

Cash-out refinances are up 33% from October last year, Black Knight reports, as Americans seek to take advantage of low interest rates and double-digit gains in home equity over the pandemic. Driven by soaring home values, U.S. tappable home equity reached 9.1 trillion dollars in October, prompting an increasing number of borrowers to cash out some of their equity for debt consolidation, investment purposes, home improvement projects, and more.

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

New Listings decreased 4.2% to 1,217
Pending Sales decreased 6.0% to 1,178
Inventory decreased 14.6% to 7,640

FOR THE MONTH OF OCTOBER:

Median Sales Price increased 7.9% to $340,000
Days on Market decreased 22.9% to 27
Percent of Original List Price Received decreased 0.2% to 100.3%
Months Supply of Homes For Sale decreased 17.6% to 1.4

All comparisons are to 2020

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

November 8, 2021

Filed Under: Weekly Report

Weekly Market Report

For Week Ending October 30, 2021

Millennials are leading the housing boom, accounting for 37% of home purchase over the last year, according to Barron’s. Increasing net worth, household formation, low mortgage rates, and a robust economy are a few of the reasons behind the recent growth of homebuyers in this age segment. With Millennials representing 22% of the U.S. population–and with their peak earning years ahead—experts remain optimistic about this generation’s impact on the housing market.

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

New Listings increased 3.7% to 1,309
Pending Sales increased 1.2% to 1,345
Inventory decreased 13.8% to 8,025

FOR THE MONTH OF SEPTEMBER:

Median Sales Price increased 9.9% to $340,700
Days on Market decreased 37.8% to 23
Percent of Original List Price Received increased 0.7% to 101.2%
Months Supply of Homes For Sale decreased 15.8% to 1.6

All comparisons are to 2020

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

November 1, 2021

Filed Under: Weekly Report

Weekly Market Report

For Week Ending October 23, 2021

Mortgage rates are on the rise, with the 30-year fixed-rate mortgage averaging 3.09% for the week ending October 21, 2021, according to Freddie Mac. Rates have climbed nearly one-third of a percent since early August. Despite increasing rates, which are projected to remain above 3% for the fourth quarter and rise even further next year, economists are expecting the housing market to continue to be active into 2022, thanks in part to strong buyer demand and increases in new listings.

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

New Listings decreased 5.3% to 1,343
Pending Sales decreased 14.7% to 1,235
Inventory decreased 15.8% to 8,130

FOR THE MONTH OF SEPTEMBER:

Median Sales Price increased 10.0% to $340,850
Days on Market decreased 37.8% to 23
Percent of Original List Price Received increased 0.7% to 101.2%
Months Supply of Homes For Sale decreased 21.1% to 1.5

All comparisons are to 2020

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

October 25, 2021

Filed Under: Weekly Report

Weekly Market Report

For Week Ending October 16, 2021

The supply of entry-level housing is at its lowest level in nearly five decades, according to Freddie Mac, who reports that entry-level home construction decreased from 418,000 units per year in the 1970s to 65,000 units per year in 2020. The shortage of starter homes has proven challenging to first-time buyers, as many existing entry-level homes are being remodeled or demolished and replaced by much larger homes, while those that remain have become significantly more expensive, with sales prices increasing 64% from 2016, according to realtor.com.

In the Twin Cities region, for the week ending October 16:

New Listings decreased 10.4% to 1,433
Pending Sales decreased 12.7% to 1,305
Inventory decreased 16.8% to 8,159

For the month of September:

Median Sales Price increased 10.0% to $341,000
Days on Market decreased 37.8% to 23
Percent of Original List Price Received increased 0.7% to 101.2%
Months Supply of Homes For Sale decreased 21.1% to 1.5

All comparisons are to 2020

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