Low Inventory Levels Spur Sales

It's been a busy spring market.  The inventory levels are still quite low and it is definitely a Seller's Market in most price ranges.  As the spring weather warms up, the market will too.  So if you are thinking of selling, now may be the time.  Contact me for a no obligation Market Analysis & Pricing Strategy.

The home-purchasing season may get a bit competitive this year thanks to low mortgage rates and pent up demand. With pending sales on the rise in many markets combined with a relatively low number of homes for sale, buyers need to act quickly once they find their ideal home.

In the Twin Cities region, for the week ending April 30:

• New Listings decreased 8.8% to 1,869

• Pending Sales increased 5.2% to 1,584

• Inventory decreased 18.7% to 12,966

Optismistic New Year

Optimism is in the air as we turn to face a new calendar year. As far as residential real estate goes, there is plenty to feel positive about. Buying and selling activity continued through the final months of 2015, and there's little reason to believe that trend will slow down during the first month of 2016. If anything, the past few years have indicated a tendency for listings and sales to increase in January.

In the Twin Cities region, for the week ending January 2:
• New Listings decreased 24.8% to 416
• Pending Sales increased 2.2% to 550

 • Inventory decreased 19.5% to 11,175

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.





Ginko Leaves on Gate       28 October, 2014

It may be cooling off, but the market is still plugging ahead.
Read the latest from Minneapolis Area Association of Realtors
Weekly Update below. 

Rising home prices and continued housing stability continue to lure new listings and keep inventory at a comfortable level. Although things like student debt and lethargic wage growth may provide some obstacles for first-time home buyers, those on the hunt for homes are still graced by relatively low inflation and low mortgage rates. The seasonal slows may settle in soon, but the market remains mostly content. In the Twin Cities region, for the week ending October 18: • New Listings increased 1.6% to 1,310 • Pending Sales increased 5.1% to 912 • Inventory increased 6.1% to 18,094

So, it's been awhile since I posted on this blog.  Well, the summer was pretty much a "Merrily we row along" until about a month ago when the market shifted.  Since then, it's been a little on the quiet side, although I have sold two listings in the past 2 weeks that were sitting on the market because of overpricing for awhile.  It's important for sellers to realize that the market has shifted and it will probably be quiet through the 4th quarter of the year.  It's pretty typical for a seasonal slow down to occur in the real estate market at this time, but it is difficult to predict if this is a "typical seasonal slow down".  It seems a little more that that.  We will see.  As for now, it's important for sellers to be realistic about pricing their homes to sell and getting them into pristine showing condition. 

Check out Mpls Area Association of Realtor's Weekly Update below.


As we turn toward the final and typically quietest quarter of the year, it is easy to wonder if we are destined to lose the stability that we have worked hard for throughout the U.S. However, gloomy considerations are readily put aside after considering a recent investigation by the Inter-national Monetary Fund into the real estate markets of other countries. It turns out that our national housing price-to-income ratio is fairly conservative. At this rate, we will soon stop talking about the process of housing recovery and just call it recovered.

In the Twin Cities region, for the week ending October 11:
• New Listings decreased 6.6% to 1,423
• Pending Sales increased 6.8% to 955
• Inventory increased 7.5% to 18,178

For the month of September:
• Median Sales Price increased 5.1% to $205,000
• Days on Market remained flat at 71
• Percent of Original List Price Received decreased 0.9% to 95.6%
• Months Supply of Inventory increased 15.8% to 4.4

Monthly Skinny: July 2013

Take a minute or two (literally) and check out "The Skinny" on the Twin Cities Real Estate Market, published by Mpls Area Association of Realtors.  Current Inventory levels are still low @ 18,011, but they are creeping upward towards a more balanced market.

Cool Black Doors

Check out the link to the right.  Who would've thought that painting an interior door black would be cool.  I did have a black front door on my first townhouse that I always liked, but interior doors??? Check out the pics & the link.

Here's the latest from the Mpls Area Association of Realtors;

We are within one of the most affordable home-buying environments in history, but prices are up and rates may well go up, too. Rising prices provide empirical evidence of healthy demand. If inventory is able to replenish itself over the course of the next several months, sales could break up the sluggishness seen in some markets. There are those who believe that millennial buyers are being seduced away from homeownership by the agility of urban renting. That doesn't appear to be the case. Housing is enjoying brisk activity, and people are talking positively about residential real estate again.

In the Twin Cities region, for the week ending July 12:
• New Listings increased 8.7% to 2,091
• Pending Sales decreased 8.4% to 1,231
• Inventory increased 7.8% to 17,606

For the month of June:
• Median Sales Price increased 4.7% to $219,900
• Days on Market decreased 6.8% to 69
• Percent of Original List Price Received decreased 0.3% to 97.2%
• Months Supply of Inventory increased 10.5% to 4.2

Mpls Area Association of Realtors Weekly Update

Here's the latest from Mpls Area Association of Realtor.  The message remains the same - Low Inventory.  If you  know of someone thinking of selling in the next 6 months, let me know.
 
There's no dainty tiptoeing through the tulips this spring, as market flower fields speculation.  Sales & 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

Property Taxes

Well, it's that time of year.  You've probably gotten your new tax statement.  Here's a couple of Since the MN Property Tax is frequently misunderstood, I thought I would post these fact sheets from the MN Department of Revenue.  Check it out.  And of course, if you would like a market on your house to determine it's Real Market Value, not it's Taxable Market Value, let me know - I'd be happy to run some numbers.

Understanding Property Taxes 
How the Assessor Estimates your Value

Well, I've been on vacation for a few weeks, but I can see that the market hasn't.  We are in dire need of inventory.  If you or anyone you know is looking to sell n the next 3-6 months, give me a call.

Housing starts haven't been quite as robust as forecast, climatological factors have chilled demand in many places and dramatic declines in foreclosure activity has become the norm in several housing markets. These factors can sometimes pull down overall sales numbers, so it's important to dig beneath the headlines.  All of this looks and feels like a natural part of the transition toward a healthier marketplace. Prices are still experiencing upward pressure, and sellers are still receiving competitive offers.

In the Twin Cities region, for the week ending February 15:

• New Listings decreased 2.9% to 1,162

• Pending Sales decreased 8.4% to 816

• Inventory decreased 9.7% to 11,965

For the month of January:

• Median Sales Price increased 12.4% to $179,850

• Days on Market decreased 12.3% to 93

• Percent of Original List Price Received remained flat at 93.5

• Months Supply of Inventory decreased 15.6% to 2.7



The Winter Sun   January 4, 2014

Well, I haven't posted for a bit.  With the holidays & then the hibernation, caused by the polar vortex, I was out of blogging until the January thaw hit.  But we all are back at it & while last week's sales were soft, due to the week long holiday for New Year's that many people took, I feel that 2014 will be a good year.  As I continue to tell people that ask, I am "cautiously optimistic".  Barring no major bad economic news or world events, I believe that the real estate market will continue to improve slowly in the Twin Cities.  I don't foresee a quick uptick in real estate prices, but rather a slow, steady improvement.   Have a Happy & Healthy 2014!
Below is the latest from Mpls Area Association of Realtors.

It's the time of year when housing statistics take a back seat to the resolve associated with a fresh calendar year. Diligent tracking of new listings and pending sales counts tends to give way to weight loss plans and personal financial planning. And you know what? That's just great! Spending some time focusing on self just may help make 2014 a banner year to match 2013. But if you want to take a quick glance, the data is here for your perusal. Here's to another great year! In the Twin Cities region, for the week ending January 4: • New Listings decreased 18.7% to 678 • Pending Sales decreased 12.4% to 507 • Inventory decreased 4.9% to 12,368  For the month of December: • Median Sales Price increased 13.7% to $191,000 • Days on Market decreased 20.4% to 86 • Percent of Original List Price Received increased 0.9% to 94.6%  • Months Supply of Inventory decreased 15.6% to 2.7

Check out this article from Houzz.com.  It's got some great decor ideas.  For yourself or a gift.
10 Beautiful Decor Gifts to Make on the Cheap

Here's today's report from Mpls Area Association of Realtors.  Inventory levels remain low with only a 3.6 month supply on the market.    It will most likely stay that way thru the end of the year.  While there won't be many buyers out there during December, the ones out there will be "Ready, Willing, & Able". 

As the end of the year approaches, market futurists will either put on their overly cheery, poinsettia-colored glasses or turn into a bunch of dreary Nostradamus Nellys. The wise analyst will tune out extremes and embrace seasonally appropriate slowdowns as a sign of normal market activity while looking with anticipation to what will likely be continued moderate recovery in 2014. Watch for light gains in inventory, quieter pending sales activity and more sedate market times.

In the Twin Cities region, for the week ending November 23:
• New Listings increased 46.6% to 893
• Pending Sales increased 42.8% to 841
• Inventory decreased 3.6% to 15,008

For the month of October:
• Median Sales Price increased 11.4% to $194,900
• Days on Market decreased 27.2% to 75
• Percent of Original List Price Received increased 1.4% to 95.8%
• Months Supply of Inventory decreased 10.0% to 3.6