Nita Morlock

Weekly Market Report

For Week Ending February 7, 2015

Nationally, housing starts are off to a good start in 2015, with new projects ahead of last year at this time. Before the confetti cannons come out, this doesn’t necessarily mean that sellers can start asking more and that buyers will immediately have more to choose from. But this does bode well for increased confidence throughout the residential real estate marketplace. Balance means a lighter ebb and flow of various market metrics rather than astronomical gains and losses. This is positive.

In the Twin Cities region, for the week ending February 7:

New Listings increased 25.4% to 1,496
Pending Sales increased 14.3% to 881
Inventory decreased 5.1% to 12,104

For the month of January:

Median Sales Price increased 8.5% to $195,000
Days on Market increased 8.6% to 101
Percent of Original List Price Received increased 0.2% to 93.7%
Months Supply of Inventory remained flat at 2.9

All comparisons are to 2014

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

Strong Start to Year Sets Tone for 2015

By Aubray Erhardt on Thursday, February 12th, 2015

The Twin Cities regional housing market started 2015 on an enthusiastic but not overly dramatic note. Both seller activity and pending buyer activity increased relative to January 2014. Sellers introduced 4,497 new listings to the marketplace, 5.9 percent more than last year. Buyers entered into 2,986 purchase agreements, 7.8 percent higher than the pending sales count at this time last year. Inventory levels were lower, down 6.3 percent to 11,926 homes currently on the market. Many in the industry are expecting more inventory as we approach the spring market—both in a month-to-month sense as well as year-over-year.

The median sales price rose 8.5 percent to $195,000, the strongest gain since last February. This increase marks 35 consecutive months of year-over-year median price gains. Price per square foot—perhaps a more telling figure—rose 6.6 percent to $118. Absorption rates were dead-even with last January. Months supply of inventory was flat at 2.9 and still suggests the arc of the market is bending toward sellers. That said, today’s landscape is slightly less competitive than in past months. Partly as a result, days on market until sale rose 7.5 percent to 100 days.

Digging deeper, the trend of less foreclosure and short sale activity continued. Traditional pending sales rose a significant 21.9 percent, while foreclosure and short sale pending sales each fell about 25 percent. That changing mix of product has helped catalyze the nearly three straight years of price gains seen in the region.

“Both buyers and sellers appear confident and energized and the traditional segment enjoyed a strong start to the year,” said Mike Hoffman, President of the Minneapolis Area Association of REALTORS® (MAAR). “The steady, ongoing improvement and normalization we saw in January could be indicative of the year as a whole but only time will tell.”

Surprisingly, interest rates have again sunk below the 4.0 percent mark. Historically and persistently low mortgage rates tend to spur purchase demand. This highly attractive financing environment can potentially offset home price increases and also encourages renters to consider homeownership. The Twin Cities housing affordability index of 206 remained stable. This means that the median household income was 106 percent higher than the necessary income needed to qualify for the median-priced home under current interest rates.

Another factor motivating home buyers is the dramatically improving jobs scene—both locally and nationally. In December, the Bureau of Labor Statistics reported that the Twin Cities again had the lowest unemployment rate of any major metro in the nation at 3.3 percent. At 5.6 percent, the national rate is the lowest it’s been since June 2008. Private job creation is accelerating and figures from past months have been revised upward.

“Consumers seem excited about the upcoming spring market,” said Judy Shields, MAAR President-Elect. “Weather permitting, we’re expecting a strong turnout for both buyers and sellers. It should be an exciting year!”

From The Skinny Blog.

Weekly Market Report

The U.S. economy continues on its journey upward. Not only have gas prices hit multi-year lows, but wages have experienced gains not seen since 2008. As the year picks up steam, and whether you hang out with the bears or bulls of market recovery prognostication (not Chicago sports teams), one cannot deny that the economy is in a more stable position than it has been in years.

In the Twin Cities region, for the week ending January 31:

New Listings increased 8.5% to 1,012
Pending Sales increased 16.0% to 886
Inventory decreased 5.6% to 12,202

For the month of January:

Median Sales Price increased 8.5% to $195,000
Days on Market increased 7.5% to 100
Percent of Original List Price Received increased 0.2% to 93.7%
Months Supply of Inventory remained flat at 2.9

All comparisons are to 2014

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

Weekly Market Report

Up, down and all around, mortgage rates and regulations will likely be hot topics this year. Rates should stay low through 2015, but consumers and finance experts believe we’re at or near rate bottoms. The implication of low rates should be that more people will be able to reach homeownership status in the coming year, but it will be interesting to see if regulatory standards loosen up or tighten further based on buyer demand.

In the Twin Cities region, for the week ending January 24:

New Listings increased 15.8% to 1,058
Pending Sales increased 3.1% to 675
Inventory decreased 6.4% to 12,149

For the month of December:

Median Sales Price increased 5.2% to $200,000
Days on Market increased 3.5% to 89
Percent of Original List Price Received decreased 0.6% to 94.1%
Months Supply of Inventory increased 3.4% to 3.0

All comparisons are to 2014

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

Weekly Market Report

New Year’s resolutions may have already faded out, but the housing market is just getting started. Even though it may take a while for new trends to emerge, the housing crisis that was a bear a few years ago has been making mostly positive gains as of late. The common thought is that this will be another year of recovery and further stabilization. Onward and upward it is.

In the Twin Cities region, for the week ending January 17:

New Listings increased 8.3% to 1,073
Pending Sales increased 14.6% to 668
Inventory decreased 6.8% to 12,027

For the month of December:

Median Sales Price increased 5.2% to $200,000
Days on Market increased 3.5% to 89
Percent of Original List Price Received decreased 0.6% to 94.1%
Months Supply of Inventory remained flat at 2.9

All comparisons are to 2014

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

January Monthly Skinny Video

Where has the Twin Cities real estate market been and where is it heading? This monthly summary provides an overview of current trends and projections for future activity.

Weekly Market Report

Some goodbyes are easier than others. As we bid farewell to the economic uncertainties of 2014, all eyes are fixated on what 2015 might bring. The economy – specifically job growth – picked up steam in the second half of the year, and that should continue. Housing performed reasonably well, but some metrics didn’t improve as much as in 2013. The new year should bring new listings, new inventory and new buyers to the marketplace.

In the Twin Cities region, for the week ending January 10:

New Listings increased 7.1% to 1,030
Pending Sales increased 17.8% to 642
Inventory decreased 6.1% to 11,999

For the month of December:

Median Sales Price increased 5.2% to $200,000
Days on Market increased 3.5% to 89
Percent of Original List Price Received decreased 0.6% to 94.1%
Months Supply of Inventory remained flat at 2.9

All comparisons are to 2014

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

Weekly Market Report

Ye olde 2014 data will likely be retrospective analysis for the next few months, but 2015 is already stirring up rumors of potential trends as we charge into the new year. The buzzworthy hot topic, low interest rates, should keep bolstering home sales as it is speculated to become a friendlier market in the coming year for many types of buyers.

In the Twin Cities region, for the week ending January 3:

New Listings decreased 18.6% to 551
Pending Sales increased 9.1% to 553
Inventory decreased 4.0% to 12,821

For the month of December:

Median Sales Price increased 5.2% to $200,000
Days on Market increased 3.5% to 89
Percent of Original List Price Received decreased 0.6% to 94.1%
Months Supply of Inventory remained flat at 2.9

All comparisons are to 2014

Click here for the full Weekly Market Activity Report. From The Skinny Blog.

Year End Real Estate Stats

By Aubray Erhardt on Wednesday, January 14th, 2015

2014 Annual Wrap-Up: Recovery Continues, Market Normalizing.

Minneapolis, Minnesota (January 14, 2015) – Strong demand and higher prices were some of the positive developments seen in 2014. Market recovery continued to take hold. Sellers were motivated by rising prices and quick market times, and so they listed more properties for sale. Closed sales activity ended the year at the second highest level since 2005. Even though the active supply of homes for sale fell to a 12-year low, home buyers had more choices during the critical spring and summer selling season. Homes sold in less time, which was great news for sellers. Absorption rates were flat and still slightly favored sellers but 2015 should see more balance. Foreclosure activity fell for a third straight year, while new construction and condo activity continued to soar in and around downtown.

2014 by the Numbers

• Sellers listed 73,768 properties on the market, a 2.3 percent increase from 2013 and the highest level since 2010
• Buyers closed on 49,541 homes, down 6.9 percent from 2013 yet the second highest figure since 2005
• Inventory levels for December fell 7.2 percent from 2013 to 11,822 units, the lowest level in 12 years but May 2014 inventory was 13.4 percent higher than May 2013.
• Months Supply of Inventory was flat at 2.9 months, tied for a 12-year low
• The Median Sales Price rose 7.2 percent to $205,739, marking a seven-year high
o This measure of home prices is 11.8 percent below its 2006 peak and 37.2 percent above its 2011 valley
• Cumulative Days on Market was down 6.0 percent to 78 days, on average—an eight-year record pace
• Lender-mediated properties made up a significantly smaller share of overall activity across multiple metrics
o 12.2 percent of all New Listings were lender-mediated (either foreclosures or short sales), down from 21.6 percent in 2013 and 34.7 percent in 2012
o 16.4 percent of all Inventory was lender-mediated, down from 26.1 percent in 2013 and 38.7 percent in 2012
o 16.5 percent of all Closed Sales were lender-mediated, down from 26.3 percent in 2013 and 39.7 percent in 2012
From The Skinny Blog.

Weekly Market Report

It is typically during the final weeks of a calendar year when residential real estate activity hits its seasonal lows, even when some year-over-year comparisons show progress. Don’t be fooled by this time of year. Buyers and sellers are preparing for promising spring and summer markets. Of late, the spring market tends to get hopping before the -ary months are even complete.

In the Twin Cities region, for the week ending December 27:

New Listings decreased 13.5% to 268
Pending Sales decreased 9.8% to 359
Inventory decreased 4.4% to 13,152

For the month of November:

Median Sales Price increased 5.1% to $205,000
Days on Market increased 5.3% to 79
Percent of Original List Price Received decreased 0.7% to 94.7%
Months Supply of Inventory increased 8.8% to 3.7

All comparisons are to 2014

Click here for the full Weekly Market Activity Report. From The Skinny Blog.