“The chatter about housing price bubbles have increased this summer as observers attempt to predict the next shift in the residential real estate market.”
Weekly Market Report
For Week Ending August 11, 2018
The U.S. housing market is becoming a tale of regions. Consumers in high-priced markets in the West are pushing back with fewer showings and sales. The Midwest is marked mostly by stability of new listings and sales with gently improving inventory. Many Northeast markets have routinely struggled to keep pace with the overall U.S. economic recovery. And the South is enjoying more showings and sales than the rest of the nation. Here’s what’s happening in the local market.
In the Twin Cities region, for the week ending August 11:
- New Listings increased 7.5% to 1,825
- Pending Sales decreased 2.5% to 1,242
- Inventory decreased 10.7% to 12,095
For the month of July:
- Median Sales Price increased 6.6% to $268,000
- Days on Market decreased 17.4% to 38
- Percent of Original List Price Received increased 0.7% to 99.8%
- Months Supply of Inventory decreased 11.1% to 2.4
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Sales Flatten while Sellers Capitalize on Price Gains
By David Arbit on Thursday, August 16th, 2018
New listings increased this July compared to last year, which could hint at a flurry of sellers looking to take advantage of this strong market. July marked the second increase in seller activity since November 2017. Meanwhile, buyer activity flattened out after seven months of year-over-year declines. This trend of rising seller activity and moderating buyer activity could mean more inventory coming down the pipeline. Increasing seller activity combined with a cool-down in demand is consistent with a loosening marketplace. That said, buyers shopping this summer and fall will still face stiff competition. Cooling buyer activity is likely a reflection of the shortage of homes for sale. Sellers yielded an average of 99.8 percent of their original list price and 100.6 percent of their current list price, illustrating how undersupplied markets tend to favor those with something to sell. The shortage is especially noticeable at the entry-level prices, where multiple offers and homes selling for over list price have become increasingly common. The move-up and upper-bracket segments are less competitive and better supplied. The market remains relatively tight, but there are some early signs that things could be loosening up to provide relief to buyers.
July 2018 by the Numbers (compared to a year ago)
Sellers listed 7,671 properties on the market, a 4.1 percent increase
Buyers closed on 6,242 homes, almost dead-even with last July
Inventory levels for July fell 13.5 percent compared to 2017 to 11,709 units
Months Supply of Inventory was down 11.1 percent to 2.4 months
The Median Sales Price rose 6.6 percent to $268,000, a record high for July
Cumulative Days on Market declined 17.4 percent to 38 days, on average (median of 18)
Changes in Sales activity varied by market segment
Single family sales fell 1.8 percent; condo sales rose 13.4 percent; townhome sales increased 5.2 percent
Traditional sales rose 1.2 percent; foreclosure sales sank 39.3 percent; short sales dropped 23.3 percent
Previously-owned sales were even with last year; new construction sales increased 14.0 percent
Weekly Market Report
For Week Ending August 4, 2018
Competitive buyers vying for a somewhat limited number of homes for sale have helped prices continue to climb, frequently over the asking price. The latest recorded national unemployment rate of 3.9 percent is historically low and has served as a general indicator of a strong economy. To give a better idea of how good the unemployment situation is right now, we were looking at a historically low rate of 4.3 percent last year at this time.
In the Twin Cities region, for the week ending August 4:
- New Listings increased 1.8% to 1,844
- Pending Sales decreased 10.7% to 1,269
- Inventory decreased 11.4% to 11,989
For the month of June:
- Median Sales Price increased 5.3% to $271,000
- Days on Market decreased 16.7% to 40
- Percent of Original List Price Received increased 0.8% to 100.3%
- Months Supply of Inventory decreased 11.1% to 2.4
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Weekly Market Report
For Week Ending July 28, 2018
The U.S. Labor Department reported that the economy added 157,000 jobs in July, marking 93 months in a row of job additions. Beginning in October 2010, that is the longest streak of monthly employment growth on record. The unemployment rate dropped to a historically low 3.9 percent, and wage growth remained at an annual rate of 2.7 percent. Meanwhile, escalating tariff conflicts with U.S. trade partners have not yet impacted the day-to-day housing market, but builders have indicated that lumber tariffs are increasing prices for new homes.
In the Twin Cities region, for the week ending July 28:
- New Listings increased 6.1% to 1,814
- Pending Sales increased 2.0% to 1,401
- Inventory decreased 12.5% to 11,959
For the month of June:
- Median Sales Price increased 5.3% to $271,000
- Days on Market decreased 16.7% to 40
- Percent of Original List Price Received increased 0.8% to 100.3%
- Months Supply of Inventory decreased 11.1% to 2.4
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Weekly Market Report
For Week Ending July 21, 2018
Although talk of another real estate pricing bubble poised to burst is premature, pundits are nevertheless beginning to point toward the common markers that caused the last housing market downturn. As prices continue to rise while wages don’t rise as quickly, a new situation could be an eventuality. Yet today’s market is quite different than the last recession. The economy is growing, lending practices are more in line with economic fundamentals and inventory appears to be improving in many markets, which would help alleviate price pressure.
In the Twin Cities region, for the week ending July 21:
- New Listings increased 2.2% to 1,927
- Pending Sales decreased 3.1% to 1,336
- Inventory decreased 13.6% to 11,728
For the month of June:
- Median Sales Price increased 5.3% to $271,000
- Days on Market decreased 16.7% to 40
- Percent of Original List Price Received increased 0.8% to 100.3%
- Months Supply of Inventory decreased 11.1% to 2.4
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
Weekly Market Report
For Week Ending July 14, 2018
National indicators do not necessarily predict the local economy, but the national trends can be a reliable gauge for what is happening with local residential real estate. Case in point, the U.S. Bureau of Labor Statistics recently reported that unemployment is relatively unchanged since last month. Meanwhile, a national statistics release about housing starts indicates that housing starts are lower nationwide, even as consumer spending on home goods purchases and renovations are up.
In the Twin Cities region, for the week ending July 14:
- New Listings increased 11.4% to 2,209
- Pending Sales decreased 2.7% to 1,417
- Inventory decreased 14.4% to 11,384
For the month of June:
- Median Sales Price increased 5.2% to $270,750
- Days on Market decreased 16.7% to 40
- Percent of Original List Price Received increased 0.8% to 100.3%
- Months Supply of Inventory decreased 11.1% to 2.4
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
June Monthly Skinny Video
“Buyer competition is frequently manifesting quick sales above asking price.”
Sellers: flat. Buyers: down. Prices: up.
By David Arbit on Wednesday, July 18th, 2018
Seller activity was relatively flat in June while buyers pulled back somewhat. For the first time since 2010, new listings surpassed 9,000 in May of this year. That’s encouraging, even though June seller activity was down slightly compared to last year. Increasing or steady seller activity combined with a cool down in demand is consistent with a loosening marketplace. That said, buyers shopping this spring and summer will still face stiff competition. While sellers are receiving full-price-or-better offers in record time, listings still need to show well and be priced properly. June marked the seventh consecutive month of year-over-year declines in closed sales, likely reflecting the shortage of homes for sale.
Strong demand and low supply means sellers yielded an average of 100.3 percent of their list price in June, a record high for any month since at least the beginning of 2003. The shortage is especially noticeable at the entry-level prices, where multiple offers and homes selling for over list price have become increasingly common.
The move-up and upper-bracket segments are less competitive and better supplied. Yes, the housing market is tight out there—sometimes frustratingly so. But over 54,000 Twin Cities buyers and sellers have managed to successfully transact real property so far this year.
June 2018 by the Numbers (compared to a year ago)
Sellers listed 8,730 properties on the market, a 1.2 percent decrease
Buyers closed on 7,063 homes, a 8.1 percent decrease
Inventory levels for June fell 15.9 percent compared to 2017 to 11,374 units
Months Supply of Inventory was down 14.8 percent to 2.3 months
The Median Sales Price rose 5.7 percent to $271,900, a record high
Cumulative Days on Market declined 14.6 percent to 41 days, on average (median of 16)
Changes in Sales activity varied by market segment
Single family sales sank 7.1 percent; condo sales rose 8.4 percent; townhome sales declined 13.7 percent
Traditional sales fell 6.6 percent; foreclosure sales sank 39.3 percent; short sales dropped 39.0 percent
Previously-owned sales fell 7.4 percent; new construction sales decreased 4.3 percent
Weekly Market Report
For Week Ending July 7, 2018
As prices persistently rise and months of supply decrease in year-over-year comparisons, it continues to be an ideal time for more sellers to enter the market. Across the U.S., inventory levels are still lagging behind last year, but new listings have perked up nicely so far this year. This has been coupled with many announced new home-building projects across the nation and a more positive tone from the building community.
In the Twin Cities region, for the week ending July 7:
- New Listings decreased 14.6% to 1,192
- Pending Sales decreased 10.6% to 1,018
- Inventory decreased 14.6% to 11,344
For the month of June:
- Median Sales Price increased 5.3% to $271,000
- Days on Market decreased 16.7% to 40
- Percent of Original List Price Received increased 0.8% to 100.3%
- Months Supply of Inventory decreased 14.8% to 2.3
All comparisons are to 2017
Click here for the full Weekly Market Activity Report. From The Skinny Blog.
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