Monday, May 4th, 2020

For Week Ending April 25, 2020

While the initial unemployment insurance claims number was down from last week, claims remain at a high level with over 4.4 million people filing for the first time in the latest Department of Labor report. Weekly initial claims are likely to continue to decrease in coming weeks while still remaining significantly elevated. Mortgage rates have stabilized over the last few weeks at nearly three-quarters of a percent lower than a year ago, while showing activity nationwide has increased 39% in the last two weeks as agents and consumers are adapting to the new environment, including using virtual showings in many cases.

In the Twin Cities region, for the week ending April 25:

  • New Listings decreased 30.7% to 1,376
  • Pending Sales decreased 24.3% to 1,071
  • Inventory decreased 11.1% to 9,161

For the month of March:

  • Median Sales Price increased 8.0% to $297,000
  • Days on Market decreased 7.6% to 61
  • Percent of Original List Price Received increased 0.6% to 99.2%
  • Months Supply of Homes For Sale decreased 10.0% to 1.8

All comparisons are to 2019

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

Posted in Weekly Report |
Monday, April 27th, 2020

For Week Ending April 18, 2020

The Department of Labor’s initial jobless claims report released April 16th showed 5,245,000 new weekly claims, which is a decrease of nearly 1.4 million from last week. New initial claims are expected to continue to decline but still remain at high levels in the next few weeks. This week the Commerce Department reported new construction building permits were at a seasonally adjusted annual pace of 1.35 million in March, which is 5% higher than last year. However, that is expected to decline in April as the impact of COVID-19 is more fully realized.

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

  • New Listings decreased 23.9% to 1,228
  • Pending Sales decreased 27.8% to 989
  • Inventory decreased 12.0% to 9,025

For the month of March:

  • Median Sales Price increased 8.0% to $297,000
  • Days on Market decreased 7.6% to 61
  • Percent of Original List Price Received increased 0.6% to 99.2%
  • Months Supply of Homes For Sale decreased 10.0% to 1.8

All comparisons are to 2019

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

Posted in Weekly Report |
Thursday, April 23rd, 2020

Sales were up compared to last year – a welcome and reassuring direction in a low supply marketplace.

Posted in Monthly Skinny Video |
Monday, April 20th, 2020

For Week Ending April 11, 2020

This week’s initial jobless claims report from the Department of Labor showed another 6.6 million workers filed last week and revised the prior week’s claims up by 219,000 to nearly 6.9 million. Millions of additional initial jobless claims are likely to be reported in the next few weeks as the full impact of shelter-in-place policies becomes apparent. Meanwhile, Freddie Mac reported that the average 30-year fixed-rate mortgages rate remained flat at 3.33% this week, down from an average of 4.12% a year ago.

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

  • New Listings decreased 30.4% to 1,210
  • Pending Sales decreased 21.0% to 1,000
  • Inventory decreased 11.3% to 8,928

For the month of March:

  • Median Sales Price increased 8.0% to $297,000
  • Days on Market decreased 9.1% to 60
  • Percent of Original List Price Received increased 0.6% to 99.2%
  • Months Supply of Homes For Sale decreased 10.0% to 1.8

All comparisons are to 2019

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

Posted in Weekly Report |
Monday, April 20th, 2020
Twin Cities home buyer activity is recovering amid safe REALTOR® practices

(April 17, 2020) – According to new data from the Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, the number of Twin Cities residential real estate showings displayed the first signs of a turnaround since they began declining during the onset of the coronavirus in mid-March.Since reaching their valley around April 2, showings have been on the rise. As of April 10, overall showings were up 16.1 percent compared to a week earlier. Reduced activity during the Easter and Passover holidays eroded that gain slightly, but that is likely a temporary blip.
“Despite some concerns among buyers and sellers, there’s clearly still activity occurring,” said Linda Rogers, President of Minneapolis Area REALTORS®. “It is still vital that REALTORS® continue to follow best practices for showing homes safely and to consider other options such as virtual tours.”

Both new listings and pending sales also saw declines in the second half of March and into April. New listings began to decline around March 26 and are now roughly 36.8 percent below their 2020 peak. The decline in buyer activity was earlier but not as severe. Pending sales began to decline around March 18 and are now about 19.1 percent below their peak.

“March was off to a strong start until the middle of the month when everything changed,” said Patrick Ruble, President of St. Paul Area Association of REALTORS®. “We even saw a double-digit gain in new listings, providing more options for buyers facing limited choices. The strength of the market preceding this crisis bodes well for a relatively quick recovery once this crisis is over.”

The monthly report for March, with its 16.0 percent gain in new listings and 11.2 percent increase in pending and closed sales, paints only a partial picture of COVID-19’s impact on the market. The numbers don’t fully reflect the effect of the stay-at-home order and school closures which occurred in the second half of the month. And most March sales were for purchase agreements that were finalized in January and February. The April numbers will offer a far more accurate view of COVID-19’s impact on the Twin Cities housing market – from sales, listings and inventory to market times and home prices.

For March, the median Twin Cities home price was up 8.0 percent to $297,000. Mortgage rates on a 30-year fixed loan are now around 3.4 percent—just about the lowest they’ve ever been. While recessions can pause market activity, they typically have only a minor impact on home prices. The undersupplied market—especially at the affordable end—should also shield prices.

March 2020 by the numbers compared to a year ago

  • Sellers listed 7,220 properties on the market, a 16.0 percent increase from last March
  • Buyers signed 5,148 purchase agreements, up 11.2 percent (4,155 closed sales, also up 11.2 percent)
  • Inventory levels declined 11.3 percent to 8,597 units
  • Months Supply of Inventory was down 15.0 percent to7 months (5-6 months is balanced)
  • The Median Sales Price rose 8.0 percent to $297,000
  • Cumulative Days on Market decreased 9.1 percent to 60 days, on average (median of 26)
  • Changes in Sales activity varied by market segment
    • Single family sales rose 13.5 percent; condo sales were up 8.4 percent; townhome sales increased 8.1 percent
    • Traditional sales increased 13.6 percent; foreclosure sales dropped 34.6 percent; short sales fell 9.5 percent
    • Previously owned sales were up 13.5 percent; new construction sales climbed 5.9 percent

For more information on weekly and monthly housing numbers visit www.mplsrealtor.com.
From The Skinny Blog.

Posted in The Skinny |
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