Nita Morlock

Weekly Market Report

Some say the big story of 2014 will be higher interest rates, some say it will be more inventory while others say it will be less foreclosure activity. The truth is likely to be an amalgamation of all of the above. The year 2013 was marked by variable but steady job growth, a good leading indicator of market activity. While consumers may be uneasy about higher rates, economic improvements can potentially offset any negative impact on affordability. The seasoned agent will recall a time when plenty of consumers were vying for properties when rates were double and triple what they are now.

In the Twin Cities region, for the week ending January 18:

New Listings decreased 8.3% to 989
Pending Sales decreased 24.8% to 591
Inventory decreased 9.5% to 11,918

For the month of December:

Median Sales Price increased 13.1% to $190,050
Days on Market decreased 20.4% to 86
Percent of Original List Price Received increased 1.0% to 94.7%
Months Supply of Inventory decreased 15.6% to 2.7

All comparisons are to 2013

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

Weekly Market Report

The years of 2012 and 2013 are going to be noted as a period of recovery for housing, and 2014 should prove to be more of the same but perhaps with not as much force. As we begin to look for signs of a stabilized residential real estate market, we may see fewer sales than in recent years, but these sales should be of a higher quality in that they will have been made with stronger lending standards to people with stronger jobs in a stronger economy. Even this early in the year, we should begin to see signs of new inventory coming onto the market with a more balanced months’ supply of inventory and well-paced market times.

In the Twin Cities region, for the week ending January 11:

New Listings decreased 14.6% to 958
Pending Sales decreased 19.5% to 556
Inventory decreased 9.8% to 11,810

For the month of December:

Median Sales Price increased 13.1% to $190,000
Days on Market decreased 20.4% to 86
Percent of Original List Price Received increased 1.0% to 94.7%
Months Supply of Inventory decreased 15.6% to 2.7

All comparisons are to 2013

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

2013 Annual Wrap-Up: Widespread Market Recovery Continues

Lower supply levels, strong demand and higher prices are among the encouraging developments in 2013 that brought about ongoing market recovery. Consumer purchase demand increased notably, reaching levels not seen since 2005. As the active supply of homes for sale fell to an 11-year low, absorption rates improved to levels not seen since before 2003. Low but upwardly-mobile interest rates, affordable prices and record housing affordability resulted in an 8.8 percent increase in home sales for the 13-county metro.

2013 by the Numbers

• Sellers listed 72,128 properties on the market, a 9.4 percent increase from 2012 and the first gain in seven years.
• Buyers closed on 53,087 homes, up 8.8 percent from 2012 and the highest figure since 2005.
• Inventory levels dropped 10.5 percent from 2012 to 11,646 units, the lowest level in 11 years.
• Months Supply of Inventory dropped 18.8 percent to 2.6 months, also an 11-year low.
• The Median Sales Price of closed sales rose 14.4 percent to $192,000, marking a five-year high. o This measure of home prices is 16.5 percent below its 2006 peak and 28.0 percent above its 2011 valley
• Cumulative Days on Market was down 29.1 percent to 83 days, on average—an eight-year record pace.
• Lender-mediated properties made up a significantly smaller share of overall activity across multiple metrics
• 21.6 percent of all New Listings were lender-mediated (either foreclosures or short sales), down from 34.7 percent in 2012 and 41.9 percent in 2011
• 25.6 percent of all Inventory was lender-mediated, down from 38.8 percent in 2012 and 44.4 percent in 2011
• 26.4 percent of all Closed Sales were lender-mediated, down from 39.7 percent in 2012 and 50.0 percent in 2011

Potent Quotables

“We are quite pleased with the breadth and depth of this recovery. The increase in seller activity was hugely important. Motivated by still-low interest rates, rising rents and more job opportunities, buyers drove home sales to an eight-year high,” said Emily Green, President of the Minneapolis Area Association of REALTORS®.

“As always, market conditions vary from neighborhood to neighborhood, but homeowners are feeling energized by these ongoing improvements,” said Michael Hunstad, President of the Saint Paul Area Association of REALTORS®. “Though markets vary, many areas of the metro are seeing homes selling in record time and with multiple offers.”

Improvements in the local economy will boost the Twin Cities real estate market in 2014. The outlook is positive: job growth is accelerating, interest rates remain attractive and an unemployment rate well below the nation’s are all reasons our region continues to outperform.

Weekly Market Report

It’s the time of year when housing statistics take a back seat to the resolve associated with a fresh calendar year. Diligent tracking of new listings and pending sales counts tends to give way to weight loss plans and personal financial planning. And you know what? That’s just great! Spending some time focusing on self just may help make 2014 a banner year to match 2013. But if you want to take a quick glance, the data is here for your perusal. Here’s to another great year!

In the Twin Cities region, for the week ending January 4:

New Listings decreased 18.7% to 678
Pending Sales decreased 12.4% to 507
Inventory decreased 4.9% to 12,368

For the month of December:

Median Sales Price increased 13.7% to $191,000
Days on Market decreased 20.4% to 86
Percent of Original List Price Received increased 0.9% to 94.6%
Months Supply of Inventory decreased 15.6% to 2.7

All comparisons are to 2013

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

Weekly Market Report

Inevitably, most housing markets tend to wind down at the end of each year. There are gifts to purchase, holiday travels to plan and kids to care for during winter break. This isn’t the case for all buyers and sellers, of course, but there are enough who follow this traditional path to create a trend view that shows creatures not stirring. Be prepared for at least two weeks of lessened activity before things pick up again in January.

In the Twin Cities region, for the week ending December 28:

New Listings decreased 14.5% to 307
Pending Sales decreased 7.8% to 400
Inventory decreased 9.1% to 12,707

For the month of November:

Median Sales Price increased 13.4% to $195,000
Days on Market decreased 26.5% to 75
Percent of Original List Price Received increased 1.3% to 95.4%
Months Supply of Inventory decreased 10.8% to 3.3

All comparisons are to 2013

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

December Monthly Skinny Video

Weekly Market Report

Gains in construction activity and job growth have made the Fed confident that moderate bond tapering won’t rock the resilient real estate market. Holiday happenings have bolstered an already healthy economy. And though winter vacation jubilee may accentuate seasonally lazy home sales, most local markets should show cozy year-over-year comparisons.

In the Twin Cities region, for the week ending December 21:

New Listings decreased 15.3% to 558
Pending Sales decreased 11.0% to 689
Inventory decreased 7.3% to 13,283

For the month of November:

Median Sales Price increased 13.4% to $195,000
Days on Market decreased 26.5% to 75
Percent of Original List Price Received increased 1.3% to 95.4%

All comparisons are to 2012

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

Weekly Market Report

A plethora of economic data was recently released, and it shows that exports rose
to their highest level ever while job growth numbers have surpassed even the most hopeful Wall Street expectations. But good news isn’t always good news, since this means that the Fed is going to begin tapering its historic bond-buying activity as the economy heals. Stocks may take a dip. But, with some luck, the demand-side effect of the impending rate increase could be offset by stronger economic fundamentals that should keep the housing market humming along.

In the Twin Cities region, for the week ending December 14:

New Listings decreased 1.9% to 759
Pending Sales decreased 11.1% to 656
Inventory decreased 6.5% to 13,728

For the month of November:

Median Sales Price increased 13.4% to $195,000
Days on Market decreased 26.5% to 75
Percent of Original List Price Received increased 1.3% to 95.4%
Months Supply of Inventory decreased 11.1% to 3.2

All comparisons are to 2012

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

Weekly Market Report

The first week in December this year was filled with Black Friday and Cyber
Monday deals – this means more people were clamoring in line at 2:00 a.m.
waiting for a Suzie-Talks-A-Lot than were attending open houses. Seasonal trends
should be evident in a slight market slowdown, but year-over-year comparisons
will still brighten any burgeoning bah-humbuggers.

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

New Listings decreased 5.7% to 887
Pending Sales increased 0.9% to 751
Inventory decreased 5.6% to 14,043

For the month of November:

Median Sales Price increased 13.4% to $195,000
Days on Market decreased 26.5% to 75
Percent of Original List Price Received increased 1.3% to 95.4%
Months Supply of Inventory decreased 11.1% to 3.2

All comparisons are to 2012

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

Lighter Foreclosure and Short Sale Load Continues to Help the Market

6a00e54ee9620b8834019b029cac33970c-800wi

The 13-county Minneapolis-St. Paul metropolitan area housing market continued to settle itself in November. While some measures of housing demand may suggest a slowdown, most deceleration is the result of a healing lender-mediated (foreclosures and short sales) segment, which made up a smaller share of the residential pie compared to last year.

For the first time in seven months, new listings were lower year over year, declining 5.3 percent to 3,900, but traditional new listings rose 11.1 percent over the same time comparison. Buyers closed on 3,760 homes, a 5.9 percent decrease from last November, even though traditional sales were up 13.6 percent. Twin Citizens have 14,126 properties to choose from – or 5.8 percent fewer than last November.

The market-wide median sales price held steady at $195,000 for a third straight month and up 13.4 percent compared to November 2012. Last year, foreclosures and short sales comprised 35.6 percent of all closed sales. In November 2013, these segments made up only 22.1 percent of all sales.

“We are seeing exactly what we want to be seeing,” said Andy Fazendin, President of the Minneapolis Area Association of REALTORS® (MAAR). “Lender-mediated activity once commanded heavy market share, and residential real estate is going to be stronger with fewer foreclosure and short sale properties in the system.”

Traditional new listings rose 11.1 percent, but foreclosure and short sale new listings fell 36.2 and 42.1 percent, respectively. Traditional closed sales rose 13.6 percent; foreclosure and short sale closings fell 34.7 and 57.6 percent. Traditional homes are selling at a median price of $217,000; foreclosures for $133,851; short sales for $150,000.

On average, homes are spending 75 days on the market – quite brisk relative to the past several years. Sellers are receiving an average of 95.4 percent of their original list price – the highest November ratio since 2005. The Twin Cities metro now has 3.2 months’ supply of inventory, which suggests sellers have regained their leverage.

“Some might claim that the recovery is stalling, but the reality is that job growth is gaining momentum and there are fewer distressed properties being listed and sold than at any point in the past five years.” said Emily Green, MAAR President-Elect. “We could stand to see this trend continue into 2014.”