As Summer's Glory Winds Down, Housing Barely Blinks

A great recap from Mpls Area Association of Realtors
By Aubray Erhardt on Monday, September 14th, 2015
What a summer it has been. Home sales reached 10-year highs, prices continued to rise but at a more sustainable pace and interest rates and job growth have both been favorable. With housing, the labor market and the broader economy all performing relatively well, the Federal Reserve seems committed to lifting their key rate off zero by year-end.
As the busy summer season draws to a close, activity levels have begun to cool month-to-month, but most indicators continue to show year-over-year improvement. Pending sales rose 12.2 percent to 5,347 for August, but are up 17.9 percent so far in 2015. Closed sales increased 7.8 percent to 5,811, but have risen 15.7 percent so far this year. Seller activity was flat compared to last year, new listings fell 0.3 percent from 6,945 to 6,922. Inventory levels tumbled 13.6 percent to 16,398 active listings.

“The August numbers show that homes are selling in near-record time and that sellers are getting close to full list price,” said Mike Hoffman, Minneapolis Area Association of REALTORS® (MAAR) President. “The average time a property spends on the market fell to 64 days, just above the 9-year record pace of 63 days.”
Strong demand combined with low supply levels means homes don’t linger on the market for long. It also means prices are still feeling upward pressure, though to a lesser extent compared to the initial phases of recovery. The August 2015 median sales price rallied 2.7 percent to $224,900. The average price per square foot also increased 2.7 percent to $129. Sellers are accepting offers at a median of 98.0 percent of their original list price but 99.3 percent of their final list price, which indicates near-full price offers arrive quickly once the home is priced right.
The Twin Cities region has 3.5 months’ supply of inventory, which means sellers are firmly in the driver’s seat. That figure sank 23.9 percent since August 2014. However, not all local areas, market segments and price points reflect that metropolitan-level reality.
During August, mortgage rates hovered just under 4.0 percent, compared to a long-term average of over 7.0 percent. The Department of Commerce reported that national construction spending rose to its highest level in seven years. The economy added 173,000 new private payrolls in July while the unemployment rate fell to 5.1 percent. The latest Bureau of Labor Statistics figures show the Minneapolis-St. Paul-Bloomington metropolitan area had the second lowest unemployment rate of any major metro at 3.7 percent.
“Anxiety surrounding interest rates might be overblown,” said Judy Shields, MAAR President-Elect. “Yes, we have likely seen the bottom in terms of mortgage rates. But they will go up very slowly and incrementally and won’t affect the typical borrower very much. We see it as a positive sign that our economy has improved and is resilient enough to withstand it. We’ve come a long way and we knew this was coming.”

Mpls Area Association of Realtors Weekly Update 9.10.15

This summer has been one of my busiest since the market collapse about 7 years ago.  Wow, has it been that long.  Houses, Townhomes, & Condos are selling if they are in pristine condition and they are priced appropriately.  With that said, I have a few listings that are lagging, but I believe it's a pricing issue with those properties.  Here's the latest from Mpls Area Association of Realtors.

The stock market has been experiencing a bit of a tizzy of late, but that does not seem to have had huge ramifications for housing.  The Mortgage Bankers Association recently reported that mortgage applications and refinancing have both been on the rise, likely in order to get ahead of an expected rate hike by the Federal Reserve. While stock market flux can have undesirable ripples throughout the economy, it appears that housing has remained relatively untouched for the time being.

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

• New Listings increased 13.0% to 1,534

• Pending Sales increased 8.3% to 1,171

• Inventory decreased 13.0% to 16,777

The latest from the Twin Cities Housing Market

July has been rocking for me.  Lots of activity with both buyers & sellers.  It's been a busy and productive summer. 


Let's try to never forget how bad the U.S. housing market got. The Great Recession lasted from about December 2007 to June 2009. Ever since then, and particularly in the last couple of years, the market has strengthened to once again become a cornerstone in one of the strongest economies in the world. Better lending standards, low oil prices and higher wages are a few of the catalysts for positive change. As we tip into the second half of 2015, the trends still reveal stable housing in a stable economy.
In the Twin Cities region, for the week ending July 18:
• New Listings decreased 7.8% to 1,758
• Pending Sales increased 7.7% to 1,210
• Inventory decreased 9.1% to 16,973

For the month of June:

• Median Sales Price increased 4.7% to $229,900
• Days on Market decreased 5.7% to 66
• Percent of Original List Price Received increased 0.5% to 97.7%
• Months Supply of Inventory decreased 15.9% to 3.7

MAAR Weekly Update; The Launch of Summer

 

Some lovely Lady Slippers

We are still a little shy on inventory as we roll into these June Summer Days.  The inventory levels have increased, but we could still use more listings that are in good updated condition & priced right.  Check out the latest from the Mpls Area Association of Realtors posted on 6.8.2015.

As we get closer to the official calendar launch of summer, residential real estate is taking off. The market may seem slower than in past spring/summer sprints, but numbers are by no means dismal. Whether the buyer category is dominated by Millennial, Generation X or move-up buyers from previous generations is no matter; activity is happening.

In the Twin Cities region, for the week ending May 30:
• New Listings decreased 2.9% to 1,696

• Pending Sales increased 23.5% to 1,357

• Inventory decreased 4.6% to 16,202

For the month of May:

• Median Sales Price increased 6.7% to $224,000

• Days on Market decreased 5.0% to 76

• Percent of Original List Price Received increased 0.7% to 97.5%

• Months Supply of Inventory decreased 12.2% to 3.6

MAAR: Weekly Market Update

Here's the latest scoop from the Mpls Area Association of Realtors. 


As we press through May, the residential real estate market is really hitting its

paces. Sales activity has been plentiful and REALTORS® are busier than ever. The

Bureau of Labor Statistics recently released April numbers, and they are still quite

positive. The nation added 223,000 jobs and the national unemployment rate

dropped to 5.4%. The need for more inventory is an ongoing issue, but not one

that thwarts optimism in the marketplace.

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

• New Listings increased 7.1% to 2,117

• Pending Sales increased 24.0% to 1,526

• Inventory decreased 1.8% to 15,518

Well, I just returned from a quick trip to sunny AZ and have had a busy week, with two sales & a wrap up of an inspection on a 3rd that sold right before I left.  Inventory levels are low at a little over 12,000 properties on the market.  A balanced  market is 20,000.  So if you're thinking about selling, let me know. I'm happy to give you a free pricing analysis for your home.  Here's the latest update from Mpls Area Association of Realtors.

 

As we hit February, mortgage rates continue to remain low, bringing about a high dosage of optimism to the market. While some reports attempt to dissect drops in builder confidence with a negative-bent attitude, low rates seem prepped to steer potential buyers toward getting their own set of house keys, curbing the pessimism of market naysayers.

In the Twin Cities region, for the week ending February 14:

• New Listings increased 12.1% to 1,298
• Pending Sales increased 15.6% to 920
• Inventory decreased 3.7% to 12,410

January, 2015 Market Numbers

We finally got a little snow yesterday and that freshened things up.  However, inventory levels still remain extremely low (only 12,149 homes compared to about 20,000 that we like to see).  If you're thinking of selling or know someone who is, NOW IS THE TIME.  Here's the latest from the Mpls Area Association of Realtors.

 

Up, down and all around, mortgage rates and regulations will likely be hot topics this year. Rates should stay low through 2015, but consumers and finance experts believe we're at or near rate bottoms. The implication of low rates should be that more people will be able to reach homeownership status in the coming year, but it will be interesting to see if regulatory standards loosen up or tighten further based on buyer demand.
 

In the Twin Cities region, for the week ending January 24:

• New Listings increased 15.8% to 1,058

• Pending Sales increased 3.1% to 675

• Inventory decreased 6.4% to 12,149

Quick Overview of 2014 Annual Report on the Twin Cities Housing Market

Rabbit Warren at Pontoise, Snow  1879 
Camille Pissarro, French
 The Art Institute of Chicago

We could certainly use some inventory again.  I just checked and the latest report shows that the inventory levels are at 11,999.  That's quite low, as we usually like to see approximately 20,000 homes on the market.  Based on my Open Houses, buyers are just getting started.  Perhaps the sellers are too.

Here's the overview from the Minneapolis Area Association of Realtor's 2014 Annual Report on the Twin Cities Housing Market.

Two steps forward, one step back. That's how the 2014 housing recovery went in most local U.S. markets. It was another recovery year but not without its hurdles – some new, some familiar. Metrics like sales price and new listings showed improvement, while new home construction and inventory didn't quite meet expectations. Though the rate of improvement is uneven across areas, price tiers and market segments, overwhelmingly encouraging data sets a positive tone for 2015.