Monday, June 18th, 2018
By David Arbit on Monday, June 18th, 2018

More sellers may finally be jumping into the market at a time when buyers are facing the challenges of low inventory. Since 2013, new listing activity has been subdued relative to buyer activity and hasn’t surpassed 9,000 new listings per month since 2010. Excluding 2010, we haven’t had this many new listings for any month since May 2008. Increasing seller activity and tapering demand are consistent with a marketplace that’s starting to loosen up just a bit. That said, buyers shopping this spring and summer will still face stiff competition. Being successful in this market takes commitment, decisiveness and persistence—traits not necessarily typical of every buyer. In fact, May marked the sixth consecutive month of year-over-year declines in closed sales, likely reflecting the lack of homes for sale and not weakness in the economy. Strong demand combined with low supply means sellers yielded an average of 100.2 percent of their list price in May, a record high for any month and the first time this indicator has exceeded 100.0 percent. The shortage is especially noticeable at the entry-level prices, where multiple offers and homes selling for over list price have become increasingly common. Homes continue to sell quickly and for close to or above list price in this tight market, but nearly 12,000 buyers and sellers managed to transact real property last month.

May 2018 by the Numbers (compared to a year ago)

Sellers listed 9,164 properties on the market, a 2.9 percent increase
Buyers closed on 5,739 homes, a 11.3 percent decrease
Inventory levels for May fell 17.8 percent compared to 2017 to 10,403 units
Months Supply of Inventory was down 16.0 percent to 2.1 months
The Median Sales Price rose 8.4 percent to $271,000, a record high
Cumulative Days on Market declined 9.6 percent to 47 days, on average (median of 17)
Changes in Sales activity varied by market segment

Single family sales sank 12.3 percent; condo sales fell 3.5 percent; townhome sales declined 7.5 percent
Traditional sales fell 9.7 percent; foreclosure sales sank 38.1 percent; short sales plummeted 59.7 percent
Previously-owned sales fell 12.4 percent; new construction sales rose 11.1 percent

From The Skinny Blog.

Posted in The Skinny |
Monday, June 18th, 2018

For Week Ending June 9, 2018

The Federal Reserve recently increased the federal funds rate by 0.25 percent, marking the second rate hike this year and seventh since late 2015. Two more 0.25 percent increases are expected by the end of the year. The 30-year mortgage rate did not increase, yet Fed action can have an indirect effect on the housing market. Buyers often react by trying to lock in at the current rate ahead of assumed future higher rates. Educating consumers that the Fed rate and mortgage rates are not the same can help curb panic buying.

In the Twin Cities region, for the week ending June 9:

  • New Listings decreased 2.7% to 2,094
  • Pending Sales decreased 4.1% to 1,450
  • Inventory decreased 18.5% to 10,623

For the month of May:

  • Median Sales Price increased 8.4% to $271,000
  • Days on Market decreased 9.6% to 47
  • Percent of Original List Price Received increased 0.7% to 100.2%
  • Months Supply of Inventory decreased 12.0% to 2.2

All comparisons are to 2017

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

Posted in Weekly Report |
Thursday, June 14th, 2018
By David Arbit on Tuesday, June 12th, 2018

Have you ever wondered to yourself what the home price trendline would look like compared to a hypothetical trendline that starts at the same price in 1990 but increased at a steady and predictable 4% annual growth? Well you’re in luck, because that’s exactly the sort of in-depth market insights that we serve up on a regular basis.

As you can see, recorded average sales prices were well above their trend from 1997 through 2008. The gravity or weight behind the long-term average has an inescapable pull. Some call this return to the average a “reversion to the mean.” There will always be short-term market fluctuations, but the overall long-term direction and growth of the market is upward at around 4-5% per year (before inflation). When we use the 4% figure, prices are only slightly above trend. If we were to use the 5% figure, prices would appear drastically undervalued relative to their long-term average.

The truth, as always, is somewhere in the middle.

*(Note that 2018 data is year-to-date up through April)
From The Skinny Blog.

Posted in The Skinny |
Monday, June 11th, 2018

For Week Ending June 2, 2018

At this time last year, there were two universal truths in residential real estate across the country. Whether or not sales were up in year-over-year comparisons, the market was assuredly active, and, thus, overall inventory was trending downward compared to the year before. That remained the case for the entirety of 2017, and that refrain sounds entirely familiar for the duration of 2018.

In the Twin Cities region, for the week ending June 2:

  • New Listings decreased 3.0% to 1,946
  • Pending Sales decreased 1.5% to 1,407
  • Inventory decreased 17.6% to 10,530

For the month of April:

  • Median Sales Price increased 8.9% to $266,750
  • Days on Market decreased 10.2% to 53
  • Percent of Original List Price Received increased 0.8% to 99.9%
  • Months Supply of Inventory decreased 20.8% to 1.9

All comparisons are to 2017

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

Posted in Weekly Report |
Tuesday, June 5th, 2018

For Week Ending May 26, 2018

Residential real estate activity is in full swing across America. Some trends are persisting as they have week after week, month after month and now year after year. But some metrics are teasing a deviation from the norm. There may not be as many homes for sale as there were last year at this time, and home price increases are still more likely than not, but there is a chance that we could see more positive changes in either sales or new listings as the summer months progress.

In the Twin Cities region, for the week ending May 26:

  • New Listings increased 5.5% to 1,817
  • Pending Sales decreased 9.9% to 1,405
  • Inventory decreased 19.4% to 10,322

For the month of April:

  • Median Sales Price increased 8.8% to $266,500
  • Days on Market decreased 10.2% to 53
  • Percent of Original List Price Received increased 0.8% to 99.9%
  • Months Supply of Inventory decreased 20.8% to 1.9

All comparisons are to 2017

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

Posted in Weekly Report |

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