The expiration of the tax credit clearly motivated buyers to take action by April 30. Last week, there was a significant 31.2 percent jump in Pending Sales versus last year, bringing the total number of contracts written to 1,469. But for the first time this year the number of New Listings was down. A total of 1,803 of them entered the market, 11.5 percent lower than a year ago. Some encouraging figures include a Days on Market count of 127, down 15.3 percent compared to last year, and Percent of Original List Price Received at Sale of 93.6 percent, up 4.0 percent over last year. We expect buyer activity to continue over the coming weeks, although not with the same level of urgency due to the expired tax credits and a slight seasonal lull before we get into the heart of summer.Friday, May 14, 2010
The expiration of the tax credit clearly motivated buyers to take action by April 30. Last week, there was a significant 31.2 percent jump in Pending Sales versus last year, bringing the total number of contracts written to 1,469. But for the first time this year the number of New Listings was down. A total of 1,803 of them entered the market, 11.5 percent lower than a year ago. Some encouraging figures include a Days on Market count of 127, down 15.3 percent compared to last year, and Percent of Original List Price Received at Sale of 93.6 percent, up 4.0 percent over last year. We expect buyer activity to continue over the coming weeks, although not with the same level of urgency due to the expired tax credits and a slight seasonal lull before we get into the heart of summer.
Friday, May 7, 2010
Weekly Market Activity Report
Well, the federal home buyer tax credit we've been talking about for the last 18 months has finally expired. All good (or bad, depending on your opinion) things must come to an end. Unfortunately, we won't have definitive evidence of how wild the final days of the credit were for another week as we wait for activity to be recorded in the MLS system.
In the meantime, we can still see that home sellers were far more active than home buyers for the week ending April 24, continuing a recent trend. There were 2,147 new listings during the week, an increase of 19.1 percent from a year ago. That's the seventh week of the last eight to show double-digit percentage increases in new listings.
Signed purchase agreements were also up but in a less extreme fashion. The 1,184 pending sales for the week were a 9.8 percent increase from a year ago.
As a result of the growth in new listings, we're projecting that the Supply-Demand Ratio for May 2010 will be 5.69 homes per buyer, a healthy balanced number but a smidge higher than the 5.23 mark of May 2009. Why point out such a subtle difference? Because that would be the first time we have seen a year-over-year increase since June 2008.
Well, the federal home buyer tax credit we've been talking about for the last 18 months has finally expired. All good (or bad, depending on your opinion) things must come to an end. Unfortunately, we won't have definitive evidence of how wild the final days of the credit were for another week as we wait for activity to be recorded in the MLS system.
In the meantime, we can still see that home sellers were far more active than home buyers for the week ending April 24, continuing a recent trend. There were 2,147 new listings during the week, an increase of 19.1 percent from a year ago. That's the seventh week of the last eight to show double-digit percentage increases in new listings.
Signed purchase agreements were also up but in a less extreme fashion. The 1,184 pending sales for the week were a 9.8 percent increase from a year ago.
As a result of the growth in new listings, we're projecting that the Supply-Demand Ratio for May 2010 will be 5.69 homes per buyer, a healthy balanced number but a smidge higher than the 5.23 mark of May 2009. Why point out such a subtle difference? Because that would be the first time we have seen a year-over-year increase since June 2008.
Wednesday, April 28, 2010
Monthly Skinny: April 2010
Take a look at the video that Mpls Area Association of Realtors puts out monthly regarding the market in the Twin Cities.
http://www.youtube.com/watch?v=Or4p0k3K1rg
http://www.youtube.com/watch?v=Or4p0k3K1rg
Tuesday, April 27, 2010
Weekly Market Activity Report
It's down to the wire in the Twin Cities housing market for consumers to take advantage of the tax credits, which are set to expire Friday, April 30. With that looming deadline, sellers are far more active than buyers right now.
For the week ending April 17, there were 2,353 new listings added, a 21.9 percent increase vs. the same week last year. Over the last three months, there have been almost 4,000 more new listings than there were during the same period last year.
Pending sales are also growing but not at the same breakneck pace. The 1,103 purchase agreements for the most recent reporting week were just 1.8 percent higher than a year ago. A heavy increase in new listings compared with a marginal increase in pending sales has led to a growth in inventory; total active listings are up 3.0 percent over last year.
So what happens after the April 30 deadline? Since the tax credit deadline has shifted many buyers forward a few months in their normal cycle, we expect a slower summer selling season.
It's down to the wire in the Twin Cities housing market for consumers to take advantage of the tax credits, which are set to expire Friday, April 30. With that looming deadline, sellers are far more active than buyers right now.
For the week ending April 17, there were 2,353 new listings added, a 21.9 percent increase vs. the same week last year. Over the last three months, there have been almost 4,000 more new listings than there were during the same period last year.
Pending sales are also growing but not at the same breakneck pace. The 1,103 purchase agreements for the most recent reporting week were just 1.8 percent higher than a year ago. A heavy increase in new listings compared with a marginal increase in pending sales has led to a growth in inventory; total active listings are up 3.0 percent over last year.
So what happens after the April 30 deadline? Since the tax credit deadline has shifted many buyers forward a few months in their normal cycle, we expect a slower summer selling season.
Friday, April 9, 2010
Weekly Market Activity Report
The Twin Cities housing market continues its spring dance as the 2010 weekly numbers outpace the equivalent weeks of 2009. New listings for the week ending March 27 were at 2,240—29.4 percent higher than during the same week last year.
Pending sales are up 13.8 percent over last year, and we once again broke the magical "1,000 margin" with 1,049 purchase agreements.
A stat to start watching closely is the ever-shrinking Supply-Demand Ratio. The ratio is squatting at 4.39 homes per buyer. That's a lot less inventory than we've seen in recent years, indicating that buyers need to move quickly to get the home they want, especially in the lower price ranges where homes are selling the quickest.
The Twin Cities housing market continues its spring dance as the 2010 weekly numbers outpace the equivalent weeks of 2009. New listings for the week ending March 27 were at 2,240—29.4 percent higher than during the same week last year.
Pending sales are up 13.8 percent over last year, and we once again broke the magical "1,000 margin" with 1,049 purchase agreements.
A stat to start watching closely is the ever-shrinking Supply-Demand Ratio. The ratio is squatting at 4.39 homes per buyer. That's a lot less inventory than we've seen in recent years, indicating that buyers need to move quickly to get the home they want, especially in the lower price ranges where homes are selling the quickest.
Monday, April 5, 2010
Shortsale; Borrower's Liability
Hopefully none of you are facing a Shortsale or Foreclosure. But since it is quite common these days, I ran across this and thought it is good info to know.
Legal Hotline Q & A by Brad Boyd, Esq.Thomsen, Nybeck, P.A.
Q: What is the borrower's liability for repayment of a promissory note after a short sale has been closed?
A: This will depend upon whether the short sale has included a negotiation with the lender(s)/creditor(s) that any outstanding portion of the debt that will not be paid from the proceeds of the short sale is forgiven or satisfied. If a release of mortgage is issued, without more, the terms of the promissory note and debt owed remain unsatisfied. Sellers should be very proactive in identifying whether short sale approval from the lender includes a "satisfaction" of the outstanding portion of the debt.
Legal Hotline Q & A by Brad Boyd, Esq.Thomsen, Nybeck, P.A.
Q: What is the borrower's liability for repayment of a promissory note after a short sale has been closed?
A: This will depend upon whether the short sale has included a negotiation with the lender(s)/creditor(s) that any outstanding portion of the debt that will not be paid from the proceeds of the short sale is forgiven or satisfied. If a release of mortgage is issued, without more, the terms of the promissory note and debt owed remain unsatisfied. Sellers should be very proactive in identifying whether short sale approval from the lender includes a "satisfaction" of the outstanding portion of the debt.
Tuesday, March 30, 2010
Weekly Market Activity Report
The local housing market continues to mimic spring growth, as Twin Citizens emerge from their wintry cocoons just in time for the final days of the home buyer tax credit. For the week ending March 20, there were 2,277 new listings, up 28.8 percent from a year ago and marking the seventh consecutive week of strong year-over-year increases.
Pending sales dropped a bit from their high the previous week, but the 950 signed purchase agreements for the week were 10.2 percent ahead of where they were at this point last year.
As the tax credit's April 30 deadline looms, expect a flurry of home sales activity. Time will tell what happens when the credit has expired, but the next few weeks should be extremely active.
The local housing market continues to mimic spring growth, as Twin Citizens emerge from their wintry cocoons just in time for the final days of the home buyer tax credit. For the week ending March 20, there were 2,277 new listings, up 28.8 percent from a year ago and marking the seventh consecutive week of strong year-over-year increases.
Pending sales dropped a bit from their high the previous week, but the 950 signed purchase agreements for the week were 10.2 percent ahead of where they were at this point last year.
As the tax credit's April 30 deadline looms, expect a flurry of home sales activity. Time will tell what happens when the credit has expired, but the next few weeks should be extremely active.
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