Here's some interesting info from CRS.com, a website for the top realtors. It is regarding Sellers Pricing their home realistically or not. Which category are you in?
Sellers Tend To Overprice Homes
Current home sellers who purchased their homes after the housing boom overprice their homes at a higher rate than those who purchased before or during the boom, according to a recent Zillow survey. Home sellers who purchased their home in 2007 or later overprice their homes by an average of 14.1 percent while those who purchased a home before 2002 price their homes approximately 11.6 percent over market value. Those who bought between 2002 and 2006 price their homes 9.3 percent above market value.
A similar sentiment prevails for homeowners who plan to sell their homes over the next four years. Those who purchased their home after the housing boom are more likely than bubble and pre-bubble buyers to base their asking price on the original purchase price of their homes rather than current market conditions.
“Overpricing homes causes them to stagnate on the market and keeps inventory from decreasing – not a desirable outcome for either the sellers or the market as a whole,” says Zillow chief economist Stan Humphries.
Fri, Jul 15, 2011
Wednesday, July 20, 2011
Tuesday, July 19, 2011
The Dogs Days of Summer are here. But at least the twin cities real estate market is hanging in there. Check out the latest info from the Mpls Area Association of Realtors. And as always, if you have any real estate related questions, call, text, email, or Facebook me.
Weekly Market Activity Report
Home sales in the Twin Cities housing market continue to show strong year-over-year growth, but we must continue to point out that this is mostly due to how extraordinarily quiet last year was at this time following the expiration of the federal home buyer tax credit.
For the week ending July 9, there were 788 pending sales, an increase of 40.2 percent from a year ago. The amount of signed purchase agreements seen in recent weeks is similar to the activity for the same weeks in the summer of 2008.
The good news is that fewer homes are being listed, which is helping to dampen any potential for an oversupply problem. Over the last three months, there have been roughly 1,400 fewer new listings than during the same period in 2010, and the inventory of available homes for sale is down 16.1 percent from this time last year.
As always, balance between buyers and sellers plus a healthy, sustainable market is the ultimate goal.
Weekly Market Activity Report
Home sales in the Twin Cities housing market continue to show strong year-over-year growth, but we must continue to point out that this is mostly due to how extraordinarily quiet last year was at this time following the expiration of the federal home buyer tax credit.
For the week ending July 9, there were 788 pending sales, an increase of 40.2 percent from a year ago. The amount of signed purchase agreements seen in recent weeks is similar to the activity for the same weeks in the summer of 2008.
The good news is that fewer homes are being listed, which is helping to dampen any potential for an oversupply problem. Over the last three months, there have been roughly 1,400 fewer new listings than during the same period in 2010, and the inventory of available homes for sale is down 16.1 percent from this time last year.
As always, balance between buyers and sellers plus a healthy, sustainable market is the ultimate goal.
Tuesday, July 12, 2011
Weekly Market Activity Report
For the week ending July 2, there were 1,057 purchase agreements, a 58.2 percent increase over the 668 seen during the same week last year.
Let's sprinkle in some context. Over the past 10 weeks in the Twin Cities metro area, pending sales have increased slightly from 986 to 1,057. Over the same 10 weeks in 2010, pending sales plunged from a credit-inspired 1,505 to an unimpressive 668. The resulting year-over-year comparisons? Three consecutive weeks of 50.0 percent or greater gains and eight consecutive weeks of double-digit gains in buyer activity.
On the seller side, activity remains comparable with 2010 levels. The 1,396 new properties added to the market were only 0.7 percent under year-ago levels. Strong sales gains coupled with stagnant listing activity is dramatically drawing down inventory levels.
There are currently 25,613 homes being actively marketed in NorthstarMLS. That's down 15.6 percent from the 30,072 seen at this time last year, which is the largest inventory decline since January 2010.
For the week ending July 2, there were 1,057 purchase agreements, a 58.2 percent increase over the 668 seen during the same week last year.
Let's sprinkle in some context. Over the past 10 weeks in the Twin Cities metro area, pending sales have increased slightly from 986 to 1,057. Over the same 10 weeks in 2010, pending sales plunged from a credit-inspired 1,505 to an unimpressive 668. The resulting year-over-year comparisons? Three consecutive weeks of 50.0 percent or greater gains and eight consecutive weeks of double-digit gains in buyer activity.
On the seller side, activity remains comparable with 2010 levels. The 1,396 new properties added to the market were only 0.7 percent under year-ago levels. Strong sales gains coupled with stagnant listing activity is dramatically drawing down inventory levels.
There are currently 25,613 homes being actively marketed in NorthstarMLS. That's down 15.6 percent from the 30,072 seen at this time last year, which is the largest inventory decline since January 2010.
Wednesday, June 22, 2011
Monthly Skinny: June 2011
Here's the latest Monthly Skinny from the Mpls Area Association of Realtors. It's a 3 minute clip, giving you the latest on the Twin Cities Real Estate Market. Check it out.
Tuesday, June 7, 2011
Weekly Market Activity Report
Buyer activity in the Twin Cities metro area increased a colossal 59.2 percent over last year, the strongest year-over-year gain since the week ending October 3, 2009. That's a win any way you look at it, especially after 52 of the past 53 weeks showed year-over-year declines in buyer activity.
The post-tax credit drop-off seen at this time last year is driving this shift while current purchase levels have been on a modest but steady seasonal uptick. So far, sales levels are on track with 2007 and 2008 trends.
The change at this time last year is also showing up on the seller's side, where 1,523 new homes were introduced, or 3.3 percent more than the same week in 2010.
Overall, we've seen four consecutive weeks of gains in seller activity and three consecutive weeks of gains in buyer activity.
Inventory levels are preparing to round off their seasonal peaks. The 23,920 Active Listings for Sale are currently 10.6 percent below year-ago levels. That marks the 17th consecutive week of declines, a phenomenon not seen since spring 2010
Buyer activity in the Twin Cities metro area increased a colossal 59.2 percent over last year, the strongest year-over-year gain since the week ending October 3, 2009. That's a win any way you look at it, especially after 52 of the past 53 weeks showed year-over-year declines in buyer activity.
The post-tax credit drop-off seen at this time last year is driving this shift while current purchase levels have been on a modest but steady seasonal uptick. So far, sales levels are on track with 2007 and 2008 trends.
The change at this time last year is also showing up on the seller's side, where 1,523 new homes were introduced, or 3.3 percent more than the same week in 2010.
Overall, we've seen four consecutive weeks of gains in seller activity and three consecutive weeks of gains in buyer activity.
Inventory levels are preparing to round off their seasonal peaks. The 23,920 Active Listings for Sale are currently 10.6 percent below year-ago levels. That marks the 17th consecutive week of declines, a phenomenon not seen since spring 2010
Wednesday, May 25, 2011
Weekly Market Activity Report
For only the second time since the end of last year's tax credit, there were more Pending Sales for a given week than in the prior year. A total of 958 buyers entered into contract for the week ending May 14, an increase of 15.4 percent and the highest number of pendings since the week ending May 8, 2010.
But let's not get too excited just yet, because this apparent shift in Twin Cities home purchase activity was primarily driven by the post-tax-credit slowdown seen at this time last year. To illustrate this point, 2011 sales activity has increased 4.1 percent since the final week of April, while 2010 saw a 43.5 percent decrease during the same period.
On the supply side, New Listings have come back in line with historical norms for this time of year. Sellers brought 1,704 new homes online, or 7.7 percent more than the same time in 2010. Again, 2011 activity has been fairly stable over the past month while 2010 activity declined by nearly 33 percent.
The 23,739 Active Listings for Sale have grown slightly over the course of the year, but remain 10.1 percent under 2010 inventory levels or about 2,700 units slimmer. All those crunches are really starting to pay off as we enter bikini season.
For only the second time since the end of last year's tax credit, there were more Pending Sales for a given week than in the prior year. A total of 958 buyers entered into contract for the week ending May 14, an increase of 15.4 percent and the highest number of pendings since the week ending May 8, 2010.
But let's not get too excited just yet, because this apparent shift in Twin Cities home purchase activity was primarily driven by the post-tax-credit slowdown seen at this time last year. To illustrate this point, 2011 sales activity has increased 4.1 percent since the final week of April, while 2010 saw a 43.5 percent decrease during the same period.
On the supply side, New Listings have come back in line with historical norms for this time of year. Sellers brought 1,704 new homes online, or 7.7 percent more than the same time in 2010. Again, 2011 activity has been fairly stable over the past month while 2010 activity declined by nearly 33 percent.
The 23,739 Active Listings for Sale have grown slightly over the course of the year, but remain 10.1 percent under 2010 inventory levels or about 2,700 units slimmer. All those crunches are really starting to pay off as we enter bikini season.
Tuesday, April 26, 2011
Weekly Market Activity Report
New Listings for the week ending April 16 were down 21.5 percent from the same week in 2010 to 1,846 properties. That's a smaller decline than the 3-month average, which is down 26.4 percent. It appears that year-over-year declines in listing activity peaked around the end of March when motivated sellers were eager for buyers to consider their properties during the run-up to the end of last year's tax credit deadline.
Pending Sales, too, predictably fell short of April 2010's credit-inspired five-year high-water mark. The 898 purchase agreements signed were 18.6 percent fewer than last year. That's on-par with the 17.6 percent 3-month average decline. Purchase demand is currently the highest it's been since the week ending May 8, 2010. Sales activity in 2010 peaked during the week that ended April 25 and then fell sharply, so we can expect a very different story in two weeks.
The winner is still inventory, which plunged by 15.4 percent from the same week in 2010. It's worth noting that the number of active listings for sale ballooned at this time last year as sellers moved to take advantage of the increased buying activity. Notwithstanding, we haven't seen declines of this magnitude in nearly 15 months. It's a trend that will mean fewer options for buyers as well as improved market balance.
New Listings for the week ending April 16 were down 21.5 percent from the same week in 2010 to 1,846 properties. That's a smaller decline than the 3-month average, which is down 26.4 percent. It appears that year-over-year declines in listing activity peaked around the end of March when motivated sellers were eager for buyers to consider their properties during the run-up to the end of last year's tax credit deadline.
Pending Sales, too, predictably fell short of April 2010's credit-inspired five-year high-water mark. The 898 purchase agreements signed were 18.6 percent fewer than last year. That's on-par with the 17.6 percent 3-month average decline. Purchase demand is currently the highest it's been since the week ending May 8, 2010. Sales activity in 2010 peaked during the week that ended April 25 and then fell sharply, so we can expect a very different story in two weeks.
The winner is still inventory, which plunged by 15.4 percent from the same week in 2010. It's worth noting that the number of active listings for sale ballooned at this time last year as sellers moved to take advantage of the increased buying activity. Notwithstanding, we haven't seen declines of this magnitude in nearly 15 months. It's a trend that will mean fewer options for buyers as well as improved market balance.
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