Category Archives: The Skinny

Twin Cities homes sold for a higher median price than during the year prior for the 12th consecutive month. This is a significant milestone demonstrating a real and sustainable recovery. Several patterns continued from 2012: pending purchase activity was up, new and existing supply levels were down, prices were higher and distressed market activity eased.

There were 2,736 closed home sales during February 2013, 4.7 percent fewer than February 2012. There were 3,689 pending sales, a 2.0 percent increase over last year. The median sales price rose 15.5 percent to $160,000. Inventory levels declined 31.6 percent to 12,202 active listings, the lowest number for any month going back to January 2003. The number of homes for sale is at a 10-year low.

“We’re watching seller activity almost more than buyer activity,” said Andy Fazendin, President of the Minneapolis Area Association of REALTORS®. “Bank listing activity is down while traditional seller activity is up. That’s an encouraging shift.”

Looking at activity by sale type, traditional closed sales were up 21.5 percent; foreclosure sales were down 23.5 percent; short sales were down 28.5 percent. Since traditional homes sell for about 75.0 percent more than foreclosures, the median sales price rose, as it has for 12 straight months compared to year-ago levels. The 10K Housing Value Index – which controls for data variability – showed a tamer 10.2 percent increase to $179,010. Stronger confidence and less economic uncertainty will encourage more seller activity, thereby increasing the supply of homes for sale. There is evidence this is improving, as traditional seller activity has been on the rise lately.

A healing distressed segment has also facilitated recovery. At 72.3 percent, traditional homes represented more than 70.0 percent of all new listings for the first time since June 2008. Traditional homes also made up 55.4 percent of all closed sales. The traditional median sales price was up 14.2 percent to $205,500; the foreclosure median sales price was up 12.3 percent to $116,522; the short sale median sales price was up 10.1 percent to $127,750.

Months’ supply of inventory fell 40.8 percent to 2.9 months. Figures below 4.0 months suggest we’re in a fledgling seller’s market. Homes sold in 113 days, on average, or 21.5 percent quicker than February 2012. Sellers received 93.7 percent of their list price, on average, up from 90.6 percent last year. Conventional financing comprised 46.7 percent of all closed sales; FHA financing was used on 20.9 percent of sales; cash buyers made up 25.1 percent of sales.

“Judging by the number of inquiries agents are receiving, buyers seem prepared and motivated this spring,” said Emily Green, MAAR President-Elect. “We anticipate an uptick in new listings and we hope it is enough to meet the strength of buyer demand.”

While we’re all exercising more and eating better – at least for another week – the local housing market has upheld several important resolutions. Four patterns continued from 2012: buyer demand was up, new and existing supply levels were down, prices were higher and distressed market activity eased. There were 2,797 closed home sales in January 2013, 11.0 percent higher than January 2012. There were 3,456 pending sales, a 13.3 percent increase over last year. Inventory levels declined 32.2 percent to 11,977 active listings, the lowest number for any month going back to January 2003. That marks an official 10-year low.

“Last year, traditional sellers re-entered the market in increasing numbers,” said Andy Fazendin, President of the Minneapolis Area Association of REALTORS®. “With our limited inventory, that’s led consumers to purchase more traditional properties, which sell for roughly 60 percent more than distressed properties.”

Traditional closed sales, in fact, were up 41.8 percent. That’s helped boost year-over-year median sales price comparisons for 11 straight months. The median home price was up 14.3 percent to $160,000. The 10K Housing Value Index – which adjusts for seasonality and segment bias – showed a tamer 8.2 percent increase to

$175,529. With the number of homes for sale at a 10-year low, seller confidence has become an increasingly vital component to continued housing recovery. There is evidence of improvement on this front, as traditional seller activity has been on the rise.

A healing distressed segment facilitated recovery. Traditional homes comprised 65.9 percent of all new listings, up from 56.3 percent last January, and made up 57.1 percent of all closed sales compared to 44.8 percent last year. In other words, fewer low-priced foreclosures and short sales both entered and sold off the market.

The traditional median sales price was up 3.6 percent to $199,900; the foreclosure median sales price was up 22.5 percent to $124,900; the short sale median sales price was up 2.9 percent to $125,500.

Despite the dramatic arrival of winter, the housing market has retained much of its summer heat. Three decisive trends continued through November: Buyer activity outperformed year-ago levels, inventory dropped and, for a ninth consecutive month, home prices rose compared to 2011. In simpler terms, more homes sold in less time at higher prices and for closer to asking price than last year. During November, 3,843 homes closed, 20.0 percent higher than November 2011. There were 3,587 pending sales, a 12.6 percent increase over last year.

The median sales price was up 16.9 percent to $173,000. The 10K Housing Value Index showed a more modest 9.1 percent increase to $173,113. The number of homes for sale fell 29.4 percent to 13,860 active listings – the lowest number since January 2003. Consequently, seller sentiment has become even more critical to housing recovery. There is evidence of improvement on this front.

The median sales price has risen for nine consecutive months. Less supply, more demand and a healing distressed segment have enabled this trend. Overall, new listings were up 0.2 percent. However, traditional new listings were up 27.8 percent while foreclosure and short sale new listings fell 21.1 and 45.7 percent, respectively. Thus, a pullback in bank-mediated listings has diluted a significant increase in traditional seller activity.

Similarly, closed sales were up 20.0 percent overall, but traditional sales were up 50.4 percent while foreclosures and short sales were down 14.9 and 2.7 percent, respectively. As for the shifting market share, traditional sales made up 64.2 percent of sales, foreclosures 24.6 percent and short sales 11.2 percent.

Months’ supply of inventory fell 40.6 percent to 3.4 months. Figures below 4.0 months of supply are typically hallmarks of sellers’ markets. Homes tended to sell in 104 days, on average, 25.9 percent quicker than last year. Sellers received 94.3 percent of their list price, on average, up from 90.9 percent last year. Conventional financing comprised 48.5 percent of all closed sales; FHA financing was used on 23.1 percent of sales; cash buyers made up 20.6 percent of sales.

From The Skinny.

Do you hear that? It’s the sound of carts shifting through the back-to-school aisles, filling quickly with notebooks and pencils and glue. It’s the sound of teenagers shuffling through dorms and down storied lanes on their first college orientation. It’s the sound of young professionals readying themselves for their first big job, freshly shorn and tailored. It’s the sound of a family preparing for the leap from the overcrowded apartment to the “starter” home that will see their first into high school. The end of summer sure can seem an awful lot like spring. Let’s see if the housing market says the same.

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

• New Listings increased 2.0% to 1,387
• Pending Sales increased 31.2% to 1,149
• Inventory decreased 29.6% to 16,982

For the month of July:

• Median Sales Price increased 13.7% to $179,000
• Days on Market decreased 27.8% to 106
• Percent of Original List Price Received increased 3.6% to 95.0%
• Months Supply of Inventory decreased 42.8% to 4.3

Click here for the full Weekly Market Activity Report.

From The Skinny.

Buyer activity: up. Seller activity: down. That could soon change if sellers begin to increase their activity levels entering the spring market. They’ve understandably been a tad shy lately, but the changing landscape is starting to register with well-informed homeowners looking to move. Buyers have shown that they refuse to let one of the most attractive purchase environments pass them by. As activity revs up this spring, not all segments will benefit equally. Which is exactly why the numbers are so central to assessing both the breadth and depth of market recovery.

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

• New Listings decreased 0.3% to 1,450
• Pending Sales increased 20.9% to 995
• Inventory decreased 24.3% to 17,899

For the month of February:

• Median Sales Price decreased 1.4% to $138,500
• Days on Market decreased 9.1% to 145
• Percent of Original List Price Received increased 2.6% to 90.6%
• Months Supply of Inventory decreased 35.8% to 4.7

Click here for the full Weekly Market Activity Report.

From The Skinny.

The last six years or so have been tough on home prices, and even the most optimistic prognosticators say it will take another six years for median sales prices to approach the halcyon days of assured annual value increases for home sellers. Generations of stable home price increases gave way to a boom-and-bust cycle that would have made the Pets.com sock puppet blush. As we enter what should be an active spring market, our communities would do well to focus effort toward creating healthy, happy homes. With those in place, prices will rise again.

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

• New Listings decreased 23.2% to 1,402
• Pending Sales increased 29.7% to 940
• Inventory decreased 22.9% to 17,818

For the month of February:

• Median Sales Price decreased 1.1% to $138,500
• Days on Market decreased 9.0% to 145
• Percent of Original List Price Received increased 2.6% to 90.6%
• Months Supply of Inventory decreased 36.5% to 4.6

Click here for the full Weekly Market Activity Report.

From The Skinny.

The week left yet another trail of evidence leading back to a housing market on the mend. This time, the encouraging signs were even less clandestine. Nationally, both new and existing home sales enjoyed improvements. Even some December numbers were upwardly revised. New home sales have real and noticeable impacts on GDP, thus generating jobs and driving down unemployment. The overall bias for the entire U.S. is firmly toward balance. Locally, market activity was mostly positive. Spring will still be the major tell.

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

• New Listings decreased 7.1% to 1,256
• Pending Sales increased 28.6% to 899
• Inventory decreased 23.2% to 17,756

For the month of January:

• Median Sales Price decreased 3.4% to $140,000
• Days on Market decreased 8.5% to 142
• Percent of Original List Price Received increased 3.4% to 91.2%
• Months Supply of Inventory decreased 34.6% to 4.7

Click here for the full Weekly Market Activity Report.

From The Skinny.

The National Association of Homebuilders index recently rose to levels not seen since 2007. Historically, it’s been a great leading indicator of housing starts. We lead with this information because it is just the latest in a series of testimonials toward a market with some wind in its sails. In as few as four months, the residential real estate scene could look quite different than it has in recent years. That’s not to say that we’re wave riding our way to a national housing boom, but market fundamentals could be steering the rudder in the direction of calmer waters. For sellers eager to get out but unwilling to take capital losses, that’s more relieving than the usual threat of hull breach.

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

• New Listings decreased 0.4% to 1,313
• Pending Sales increased 28.9% to 928
• Inventory decreased 23.5% to 17,690

For the month of January:

• Median Sales Price decreased 3.4% to $140,000
• Days on Market decreased 8.5% to 142
• Percent of Original List Price Received increased 3.4% to 91.2%
• Months Supply of Inventory decreased 34.6% to 4.7

Click here for the full Weekly Market Activity Report.

From The Skinny.