Monday, December 9th, 2019

For Week Ending November 30, 2019

Americans across the country sat down to Thanksgiving with friends and family this week. Real estate activity took a backseat to the preparation of meals and the hosting of guests, where securing second helpings were more important than securing second homes. As we enter the final weeks of 2019, there is strength and optimism in the housing market, but at a pace that is muted due to the holiday season. The relatively low levels of inventory coupled with continued strong buyer activity are the common refrains across much of the country.

In the Twin Cities region, for the week ending November 30:

  • New Listings decreased 43.6% to 501
  • Pending Sales decreased 26.3% to 702
  • Inventory decreased 6.6% to 10,461

For the month of October:

  • Median Sales Price increased 5.7% to $280,000
  • Days on Market decreased 4.2% to 46
  • Percent of Original List Price Received increased 0.2% to 98.1%
  • Months Supply of Homes For Sale decreased 4.0% to 2.4

All comparisons are to 2018

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

Posted in Weekly Report |
Monday, December 2nd, 2019

For Week Ending November 23, 2019

Residential new construction activity continues to rise nationally. The U.S. Commerce Department reports that new housing permits rose 5% in October to a new 12-year high of 1.46 million units. Lawrence Yun, the National Association of REALTORS® chief economist, called the latest figures “tremendously good news for the housing sector.” With builder sentiment and buyer activity remaining strong, it is widely expected that new construction will continue to remain brisk in the coming months.

In the Twin Cities region, for the week ending November 23:

  • New Listings increased 74.1% to 928
  • Pending Sales increased 39.8% to 966
  • Inventory decreased 6.6% to 10,724

For the month of October:

  • Median Sales Price increased 5.7% to $280,000
  • Days on Market decreased 4.2% to 46
  • Percent of Original List Price Received increased 0.1% to 98.1%
  • Months Supply of Homes For Sale decreased 4.0% to 2.4

All comparisons are to 2018

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

Posted in Weekly Report |
Monday, November 25th, 2019

For Week Ending November 16, 2019

In the Federal Housing Administration’s 2019 Annual Report to Congress, the FHA announced their Mutual Mortgage Insurance Fund Capital Ratio stood at 4.84%, up from 2.76% last year and well above the 2% minimum required by Congress. This has prompted the National Association of REALTORS® to advocate for a reduction in FHA insurance premiums and eliminating the life-of-loan mortgage insurance requirement. While the FHA has not committed to any changes at this time, there is optimism for change in the future as the reserves continue to increase. With FHA loan market share at 11.4% in the 2019 report, any reduction in mortgage insurance costs would positively affect a large number of future borrowers.

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

  • New Listings increased 6.2% to 1,028
  • Pending Sales increased 6.3% to 999
  • Inventory decreased 6.1% to 11,147

For the month of October:

  • Median Sales Price increased 5.7% to $280,000
  • Days on Market decreased 4.2% to 46
  • Percent of Original List Price Received increased 0.1% to 98.1%
  • Months Supply of Homes For Sale decreased 4.0% to 2.4

All comparisons are to 2018

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

Posted in Weekly Report |
Monday, November 25th, 2019

Fannie Mae is predicting that continued low rates and possibly lower rates are expected in 2020.

Posted in Monthly Skinny Video |
Thursday, November 21st, 2019

November 19, 2019

The Twin Cities real estate market started the fourth quarter of 2019 on a strong note with buyer and seller activity rising in October compared to 2018. Buoyed by historically low interest rates, the number of new listings and pending sales rose last month and the median price of a home also increased.

New listings increased by 3.8 percent last month to nearly 6,300 properties on the market. Pending home sales increased 4.9 percent in October, continuing their steady rise since mortgage rates dipped below 4.0 percent in June. The increase also puts the number of pending sales in positive territory for the year. Continuing the market’s upward trend, the median price of a home in the Twin Cities rose to $280,000 in October, a 5.7 percent increase over last year.

October reversed a trend of rising days on market and continued September’s reversal of sellers accepting a slightly lower share of their list price compared to last year. With increased sales activity, quicker market times and sellers yielding strong offers, it’s no wonder more sellers decided to list. There are still some signs that the market is rebalancing, but buyers awaiting spooky news could see their patience tested based on October numbers.

While inventory has grown this year, supply remains tight for first-time buyers and downsizing households competing for homes under $350,000. At this price point, multiple offers and homes selling for over list price in record time is still common. Builders struggle to replenish inventory due to high costs, a labor shortage and regulatory constraints. The shortage of affordable homes has prompted many owners to stay put. With 2.3 months of supply, the Twin Cities market is still significantly undersupplied.

October 2019 by the Numbers (compared to a year ago)

  • Sellers listed 6,258 properties on the market, a 3.8 percent increase from last October
  • Buyers closed on 5,391 homes, a 1.3 percent increase
  • Inventory levels decreased 5.8 percent from last October to 11,607 units
  • Months Supply of Inventory was down 8.0 percent to 3 months
  • The Median Sales Price rose 5.7 percent to $280,000
  • Cumulative Days on Market declined 4.2 percent to 46 days, on average (median of 25)
  • Changes in Sales activity varied by market segment
    • Single family sales rose 5.5 percent; condo sales increased 1.4 percent; townhome sales fell 0.5 percent
    • Traditional sales increased 4.8 percent; foreclosure sales dropped 21.1 percent; short sales fell 55.6 percent
    • Previously owned sales were up 4.4 percent; new construction sales climbed 2.6 percent

Quotables

“Interest rates are boosting buyer confidence,” said Todd Urbanski, President of Minneapolis Area REALTORS®. “Consumers may also be realizing that some of their fears around the market and economy could be overstated.”

“The latest figures show our key metrics returning to growth,” said Linda Rogers, President-Elect of Minneapolis Area REALTORS®. “We expect Minnesota and the Midwest to fare well should that change.”
From The Skinny Blog.

Posted in The Skinny |

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