Our Blog

Monday, April 21st, 2014

There’s no dainty tiptoeing through the tulips this spring, as market flower fields are blooming with speculation. Sales and new listings are up, and hope for a fluorescent spring market is flourishing. An increase in inventory is the desire at this point in the season, as more properties for sale should nudge first-time home buyers to sow their fledgling seeds in the housing market and encourage move-up buyers to say goodbye to familiar flower beds in favor of an upsized plot across town.

In the Twin Cities region, for the week ending April 12:

  • New Listings increased 19.9% to 1,925
  • Pending Sales increased 1.8% to 1,157
  • Inventory decreased 2.4% to 13,736

For the month of March:

  • Median Sales Price increased 7.6% to $190,000
  • Days on Market decreased 11.1% to 96
  • Percent of Original List Price Received remained flat at 95.0
  • Months Supply of Inventory decreased 6.1% to 3.1

All comparisons are to 2013

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

Posted in Weekly Report |
Monday, April 14th, 2014

April reporting brings hope as tulips and FOR SALE signs begin to brighten the housing landscape. Along with that hope is a little uncertainty about some regions’ year-over-year sales and inventory figures. Fear not, however, because rates are still lower than most years in modern memory, there’s proof of an improving mix of properties for sale on the national landscape and upward price pressure continues to motivate potential home buyers. Watch listing activity closely for more hints as to what may be unearthed next.

In the Twin Cities region, for the week ending April 5:

  • New Listings increased 6.1% to 1,839
  • Pending Sales decreased 7.1% to 1,026
  • Inventory decreased 3.6% to 13,241

For the month of March:

  • Median Sales Price increased 7.6% to $190,000
  • Days on Market decreased 12.0% to 95
  • Percent of Original List Price Received remained flat at 95.0
  • Months Supply of Inventory decreased 6.1% to 3.1

All comparisons are to 2013

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

Posted in Weekly Report |
Monday, April 14th, 2014
After being cooped up for a long, cold winter, homeowners in the 13-county Minneapolis-St. Paul metropolitan area showed renewed signs of optimism in March. Seller activity rose 5.5 percent to 6,492 newly listed homes, a crucial increase toward fueling buyer demand. Inventory levels are still hovering near a 10-year low, but consumers should have more options to choose from this year compared to recent years. Pending sales were 8.4 percent lower, resulting from a desired shift to less foreclosure and short sale activity. Most indicators continue to suggest ongoing recovery and stabilization.

It’s imperative to understand market activity by segment. Buyers are now leaning toward traditional purchases first because they are making up a greater share of the marketplace. These properties also tend to be in better condition, many come with warranties and traditional sellers tend to be more cooperative than banks. New traditional listings rose 22.1 percent compared to March 2013, while foreclosure and short sale new listings fell 39.9 and 53.8 percent, respectively.

On the demand side, pending sales declined 8.4 percent to 4,141 properties overall, which still reflects less distressed market activity. Once again, traditional pending sales were up 2.6 percent while pending foreclosure and short sales fell 32.2 and 45.1 percent, respectively. Consumers shopping for homes now have 13,086 properties to choose from – or 4.1 percent fewer than last year at this time, marking the smallest year-over-year decline since November 2013.

“There’s a lot of excitement and positive energy out there, especially among sellers,” said Emily Green, President of the Minneapolis Area Association of REALTORS® (MAAR). “Some would-be sellers have been lifted out from underwater by rising prices and less competition from foreclosures, while other move-up buyers are also eager to buy.”

The lowest price point of the market is evaporating. As a result, the median sales price for the metro rose 7.6 percent to $190,000, marking 25 straight months of year-over-year price gains. Last March, foreclosures and short sales made up 25.2 percent of all new listings. This March, they made up just 13.3 percent. For closed sales, the number fell from 37.6 to 26.6 percent.

On average, homes spent just 95 days on the market, 12.0 percent less than last March. Sellers are receiving an average of 95.0 percent of their original list price. The Twin Cities now has 3.1 months’ supply of inventory, suggesting a favorable selling environment. Importantly, interest rates remain affordable and well below their long-term average.

“Traditional properties are dominating the market again,” said Mike Hoffman, MAAR President-Elect. “As distressed product clears the pipeline, consumers are more likely to embark upon negotiations and transactions with people rather than banks.”

Posted in The Skinny |
Monday, April 7th, 2014

As April encroaches and spring feels more official, so does the possibility of a brightened, exciting housing market. Even though some areas across the country have seen a pause in buyer activity, the fundamentals remain positive. Traditional home buyers are apt to bud like a spring mix of lavender, peonies and tulips. And home prices are rising as surely as soil is being tilled for another fruitful season, adding even more to those warm fuzzy feelings sure to come.

In the Twin Cities region, for the week ending March 29:

  • New Listings increased 18.4% to 1,599
  • Pending Sales decreased 5.6% to 1,101
  • Inventory decreased 5.5% to 13,056

For the month of February:

  • Median Sales Price increased 14.4% to $183,000
  • Days on Market decreased 10.8% to 99
  • Percent of Original List Price Received decreased 0.2% to 93.6%
  • Months Supply of Inventory decreased 9.4% to 2.9

All comparisons are to 2013

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

Posted in Weekly Report |
Monday, March 31st, 2014

This spring, investors are expected to play a less dominant role since there are fewer attractive bargains to be had. This allows room for younger families and individuals fed up with rent hikes. The affordability picture has come down but remains attractive, pressured by rising but not fully recovered prices and slightly higher rates. Despite some inventory shortages, several local markets are in balanced territory heading into the peak selling season.

In the Twin Cities region, for the week ending March 22:

  • New Listings increased 2.6% to 1,490
  • Pending Sales decreased 6.9% to 1,010
  • Inventory decreased 6.8% to 12,791

For the month of February:

  • Median Sales Price increased 14.4% to $183,000
  • Days on Market decreased 10.8% to 99
  • Percent of Original List Price Received decreased 0.2% to 93.6%
  • Months Supply of Inventory decreased 12.5% to 2.8

All comparisons are to 2013

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

Posted in Weekly Report |