Nita Morlock

Weekly Market Report

For Week Ending December 31, 2016

At the outset of 2017, we are watching for upward movement in some of the same areas that we were watching in 2016. Inventory remains a key metric, as continued decreases may push out potential buyers, especially if mortgage rates continue to increase. However, buying a home is still considered more affordable than renting in two-thirds of the country according to the 2017 Rental Affordability Report by ATTOM Data Solutions.

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

New Listings decreased 7.5% to 384
Pending Sales decreased 14.9% to 474
Inventory decreased 24.9% to 9,049

For the month of December:

Median Sales Price increased 4.1% to $228,500
Days on Market decreased 10.1% to 71
Percent of Original List Price Received increased 0.6% to 96.0%
Months Supply of Inventory decreased 30.4% to 1.6

All comparisons are to 2015

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

Weekly Market Report

For Week Ending December 24, 2016

As we look toward 2017, the entirety of the U.S. housing market has never been worth as much as it is right now. Housing stock value grew to $29.6 trillion in 2016, regaining all of the value that was lost during the last recession. An upward trend in mortgage rates, mortgage credit and new construction are all common predictions for 2017.

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

New Listings increased 32.5% to 359
Pending Sales increased 28.1% to 606
Inventory decreased 23.9% to 9,469

For the month of November:

Median Sales Price increased 5.5% to $231,400
Days on Market decreased 15.1% to 62
Percent of Original List Price Received increased 0.8% to 96.7%
Months Supply of Inventory decreased 24.1% to 2.2

All comparisons are to 2015

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

Weekly Market Report

For Week Ending December 17, 2016

As we begin our final descent into 2017, the total value of the housing market has hit its highest point since the early 2000s. With mortgage rates on the rise and prices still increasing in most categories and locations, lower affordability could lead to less demand. However, most real estate professionals remain optimistic about the market and excited for the year ahead.

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

New Listings decreased 4.1% to 578
Pending Sales decreased 11.3% to 706
Inventory decreased 23.5% to 9,978

For the month of November:

Median Sales Price increased 5.5% to $231,325
Days on Market decreased 15.1% to 62
Percent of Original List Price Received increased 0.7% to 96.6%
Months Supply of Inventory decreased 24.1% to 2.2

All comparisons are to 2015

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

December Monthly Skinny Video

Weekly Market Report

For Week Ending December 10, 2016

Housing starts have fallen from last month’s nine-year high, but the onset of the winter season has to be a strong consideration for the reason behind the month- over-month slowdown. The fact remains that homebuilder confidence has reached its highest point in more than ten years, and the housing market is rounding out the year in a rather solid position.

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

New Listings increased 1.5% to 725
Pending Sales increased at 745
Inventory decreased 22.1% to 10,422

For the month of November:

Median Sales Price increased 5.5% to $231,400
Days on Market decreased 15.1% to 62
Percent of Original List Price Received increased 0.8% to 96.7%
Months Supply of Inventory decreased 24.1% to 2.2

All comparisons are to 2015

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

Eager buyers, tepid sellers and an imminent December rate hike

By Erin Milburn on Wednesday, December 14th, 2016

As Twin Citizens hunker down for winter, home buyers haven’t requested any time off this holiday season. Pending home sales rose 9.0 percent compared to last November and are at their highest level for any November since 2004. Closed sales likely reflect a sense of haste, as buyers closed on a whopping 25.2 percent more homes this November than last year. That represents the largest year-over-year increase in closed sales since February 2012, when closings increased 28.2 percent. Partly due to our lovely November weather, buyer activity this year fell much less from October to November than in past years.

Sellers were decidedly less optimistic about moving. Only 3,743 for-sale properties were listed on the market last month, 1.1 percent fewer than last November. Although home prices have reached their seasonal peak for the year, the median sales price increased 5.8 percent from last year to $232,000—uncharacteristically surpassing the $230,000 median price during September and October of 2016. Inventory levels dropped 22.8 percent to 10,706 active properties, which is nearing a 14-year record low. Additional listings are needed to address the current supply shortage—especially at the entry-level and first-time buyer price brackets.

Competing bids on attractive listings are common in low inventory environments, and homes tend to sell quickly for close to list price. Days on market until sale fell 16.4 percent to 61 days compared to 64 for the year so far. The average percent of original list price received at sale was 96.7 percent, 0.8 percent higher than last year. But the median percent of current list price received is 99.4 percent. Months supply of inventory fell 27.6 percent to 2.1 months—the lowest figure on record for any month since 2003. This indicator measures the balance between supply and demand in the marketplace. Generally, five to six months of supply is considered a balanced market.

“Strong buyer demand is still driving this market in a great big way,” said Judy Shields, Minneapolis Area Association of REALTORS® (MAAR) President. “While it’s not unheard of for pending sales to surpass new listings in a winter month, it is relatively uncommon.”

While single family sales dominate the Twin Cities market by number, townhome sales showed the largest year-over-year sales increase followed by condos. Similarly, though previously-owned properties make up the largest share of sales, newly constructed properties had three times the year-over-year increase. The most active price range over the last 12 months is $190,000 to $250,000 but the largest gain in sales occurred in the $350,000 to $500,000 range.

A healthy Twin Cities labor market has been conducive to housing recovery. The most recent national unemployment rate is 4.6 percent, though it’s 3.1 percent locally. The Minneapolis–St. Paul metropolitan area has the fourth lowest unemployment rate of any major metro area.

The average 30-year fixed mortgage rate has risen to 4.13 percent, still well below a long-term average of about 8.0 percent. Marginally higher rates were widely expected in 2016, but the Federal Reserve hasn’t moved rates since last December. While “Fedspeak” is notoriously ambiguous, Chair Yellen recently gave markets an unusual amount of clarity regarding Fed policy. Expect a quarter or half point increase in the federal funds rate at their December meeting.

“Buyers are feeling the pressure to some degree but still remain sensible,” said Cotty Lowry, MAAR President-Elect. “Despite some interest rate risk and policy uncertainties moving forward, overall 2017 is expected to be another good year for housing.”
From The Skinny Blog.

Weekly Market Report

For Week Ending December 3, 2016

This has proven to be a steady year for buying and selling activity in the residential real estate market. Although inventory declined and prices increased throughout the year, it has been a rather strong year, and many are predicting that 2017 will remain about the same as long as inventory remains somewhat steady, unemployment rates continue to fall and mortgage rates remain low.

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

New Listings decreased 14.7% to 747
Pending Sales increased 1.7% to 900
Inventory decreased 19.9% to 11,099

For the month of November:

Median Sales Price increased 5.7% to $231,750
Days on Market decreased 16.4% to 61
Percent of Original List Price Received increased 0.8% to 96.7%
Months Supply of Inventory decreased 27.6% to 2.1

All comparisons are to 2015

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

Weekly Market Report

For Week Ending November 26, 2016

National home prices reached a record high, increasing 0.1 percent from the pre-recession peak in 2006. This height – driven by low inventory, solid demand and responsible lending practices – is much different from the previous high mark. Inflation is also a factor. Interest rates, unemployment, prices and wage trends will continue to be factors to monitor for trend analysis as we reach toward 2017.

In the Twin Cities region, for the week ending November 26:

New Listings decreased 6.7% to 502
Pending Sales decreased 5.7% to 595
Inventory decreased 19.9% to 11,571

For the month of October:

Median Sales Price increased 6.5% to $230,000
Days on Market decreased 14.3% to 60
Percent of Original List Price Received increased 0.8% to 96.9%
Months Supply of Inventory decreased 21.2% to 2.6

All comparisons are to 2015

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

Weekly Market Report

For Week Ending November 19, 2016

With the holiday season in full swing, existing home sales rose for the second straight month to the highest they have been since 2007. This was unexpected, since prices are also at record highs and inventory is still consistently declining. As both incomes and employment figures continue to improve, it would be a welcome surprise to see sales trend higher through to the end of the year.

In the Twin Cities region, for the week ending November 19:

New Listings increased 10.9% to 950
Pending Sales increased 8.0% to 902
Inventory decreased 19.7% to 11,975

For the month of October:

Median Sales Price increased 6.5% to $230,000
Days on Market decreased 14.3% to 60
Percent of Original List Price Received increased 0.8% to 96.9%
Months Supply of Inventory decreased 21.2% to 2.6

All comparisons are to 2015

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