Prices rising, pending sales stable amidst market rebalancing

Gardeners aren’t the only ones struggling with spring weather this year. The season’s late start and temperature swings suppressed housing market activity early this year, but those effects are moderating. The latest numbers for Twin Cities residential real estate show some strength amidst ongoing signs of change. Prices reached a new record of $281,000. New listings reversed course and rose 4.5 percent. Closed sales were down about 7.0 percent though pending sales—a measure of future closings—fell just 1.1 percent. Market times rose 5.7 percent year-over-year, the second increase since March 2015. Another sign of a changing market is the ratio of sold to list price has fallen for five of the last six months. In conjunction with other indicators, this suggests the market is improving for buyers, even though sellers still have strong pricing power, favorable negotiating leverage and quick market times.

The number of active listings for sale decreased slightly compared to the prior year. Even so, buyers have seen inventory gains for seven of the last eight months. After seven months of gains, months supply was flat at 2.0 months, suggesting the market is still undersupplied. Well-priced, turnkey properties continue to be highly sought-after. Mortgage rates remain cooperative at around 4.1 percent, which is good news for buyers. The market is tightest at the entry-level prices, where multiple offers and homes selling for over list price are commonplace. The move-up and upper-bracket segments are less competitive and better supplied.

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

Sellers listed 7,679 properties on the market, a 4.5 percent increase from last April
Buyers closed on 4,384 homes, a 6.9 percent decrease
Inventory levels for April declined 1.2 percent compared to 2018 to 9,667 units
Months Supply of Inventory was flat at 2.0 months
The Median Sales Price rose 5.2 percent to $281,000, a record high for any month
Cumulative Days on Market rose 5.7 percent to 56 days, on average (median of 21)
Changes in Sales activity varied by market segment

Single family sales declined 7.1 percent; condo sales rose 9.1 percent; townhome sales fell 9.1 percent
Traditional sales decreased 5.2 percent; foreclosure sales declined 30.3 percent; short sales fell 38.9 percent
Previously-owned sales were down 8.9 percent; new construction sales surged 20.3 percent

Quotables

“Things still seem to be rebalancing a bit,” said Todd Urbanski, President of Minneapolis Area REALTORS®. “Low and stable rates have definitely helped, and so has the ongoing economic expansion.”

“We’re doing better here than many other parts of the country,” said Linda Rogers, President-Elect of Minneapolis Area REALTORS®. “It’s important for buyers and sellers to understand local dynamics, not national headlines.”

All information is according to the Minneapolis Area REALTORS® based on data from NorthstarMLS. Minneapolis Area REALTORS® is the leading regional advocate and provider of information services and research on the real estate industry for brokers, real estate professionals and the public. We serve the Twin Cities 16-county metro area and western Wisconsin.

From The Skinny Blog.

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April Monthly Skinny Video

“Buyers are beginning to return in force this Spring. For well-priced homes in desirable locations, competition is fierce.”

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Weekly Market Report

For Week Ending May 11, 2019

There is no such thing as a national real estate market. When the median sales price of homes for sale in San Francisco ($1.6 million) are compared to the median annual household income in Youngstown, Ohio ($26,295), it is especially evident. National news outlets will report on housing stories as though one size fits all, but this is particularly untrue in 2019 – not only in terms of home pricing compared to income, but with trends in new listings and pending sales.

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

  • New Listings decreased 1.7% to 2,044
  • Pending Sales decreased .1% to 1,531
  • Inventory increased 1.5% to 10,245

For the month of April:

  • Median Sales Price increased 5.2% to $281,000
  • Days on Market increased 5.7% to 56
  • Percent of Original List Price Received decreased 0.5% to 99.4%
  • Months Supply of Homes For Sale increased 5.0% to 2.1

All comparisons are to 2018

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

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Weekly Market Report

For Week Ending May 4, 2019

The national chatter over the past couple of weeks has been about royal babies, exciting NBA and NHL playoff games, heightened talk of higher tariffs for China, lackluster tech IPOs and, of course, who will sit on the Iron Throne. Mixed in with those conversations have been thousands of discussions about the housing market at coffee shops, over backyard fences and at real estate industry conventions. The selling season is upon us, and homes are moving quickly.

In the Twin Cities region, for the week ending May 4:

  • New Listings decreased 1.6% to 2,029
  • Pending Sales decreased 12.9% to 1,338
  • Inventory increased 1.1% to 9,897

For the month of March:

  • Median Sales Price increased 6.5% to $275,000
  • Days on Market increased 15.8% to 66
  • Percent of Original List Price Received decreased 0.5% to 98.6%
  • Months Supply of Homes For Sale increased 5.6% to 1.9

All comparisons are to 2018

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

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Weekly Market Report

For Week Ending April 27, 2019

The national unemployment rate dropped to 3.6 percent during April 2019, the lowest level since 1969. A historically low unemployment rate can provide reassurance to wary consumers. But in order for sales to increase on a grand scale, buyers will need more spending power, or sellers will need to reduce prices to land where buyers are most active. Neither situation is likely to occur in 2019, yet inventory is straining to keep pace in the most competitive price ranges.

In the Twin Cities region, for the week ending April 27:

  • New Listings increased 10.1% to 1,953
  • Pending Sales decreased 4.1% to 1,363
  • Inventory decreased 1.8% to 9,492

For the month of March:

  • Median Sales Price increased 6.5% to $275,000
  • Days on Market increased 15.8% to 66
  • Percent of Original List Price Received decreased 0.5% to 98.6%
  • Months Supply of Homes For Sale increased 5.6% to 1.9

All comparisons are to 2018

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

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