“Nationally, buyer and seller activity remained strong, buoyed by low mortgage rates.”
Weekly Market Report
For Week Ending October 12, 2019
In the last month, mortgage rates have fallen to their lowest monthly average in more than three years, and now Fannie Mae is predicting that continued low rates, and possibly lower rates, are expected in 2020. These historically low mortgage rates have and will continue to support buyer demand and may create additional lift to home prices as lower financing costs give buyers the ability to offer more to secure their dream home.
In the Twin Cities region, for the week ending October 12:
- New Listings increased 7.3% to 1,496
- Pending Sales decreased 5.9% to 1,036
- Inventory decreased 4.4% to 12,457
For the month of September:
- Median Sales Price increased 6.5% to $279,000
- Days on Market increased 2.4% to 43
- Percent of Original List Price Received increased 0.1% to 98.5%
- Months Supply of Homes For Sale decreased 3.7% to 2.6
All comparisons are to 2018
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Sales, prices still rising despite some changes this year
The latest numbers for Twin Cities residential real estate show a stable market with some ongoing signs of transition. Prices are still rising, supply is still tight, and demand has recovered even while market times have lengthened. Even though more buyers are closing on homes, the urgency has subsided somewhat. Days on market rose 2.4 percent from last September, marking the fifth year-over-year increase in the last seven months. Market times remain swift despite modest increases. Sales rose 3.4 percent and the median sales price increased 6.6 percent to $279,250. Pending sales—a measure of signed contracts and future demand—rose 2.9 percent. Both pending and closed sales are down slightly for the year so far, but that may change. New listings were up 2.5 percent, helping some buyers take advantage of historically low rates. Sellers have been accepting a slightly lower share of their list price compared to the year prior for seven of the last eight months—with September bucking that trend. This, along with other indicators, suggests the market is rebalancing in a way that could benefit buyers.
The number of active listings for sale is up over the last 12 months and for most of 2019. Even so, the market remains tight—particularly for first-time buyers and downsizers competing in the under $300,000 segment where multiple offers and homes selling for over list price remain commonplace. Despite the demand, builders struggle to replenish inventory in that undersupplied segment due to high land and material costs combined with a significant labor shortage and tricky regulations. The shortage of affordable homes has led to an increase in remodeling as people are staying in their homes longer. It’s challenging to find comparable home at a similar payment in the desired location. With just 2.5 months of supply, the Twin Cities is still significantly undersupplied.
September 2019 by the Numbers (compared to a year ago)
- Sellers listed 7,041 properties on the market, a 2.5 percent increase from last September
- Buyers closed on 5,358 homes, a 3.4 percent increase
- Inventory levels decreased 5.6 percent from last September to 12,478 units
- Months Supply of Inventory was down 7.4 percent to 5 months
- The Median Sales Price rose 6.6 percent to $279,250
- Cumulative Days on Market rose 2.4 percent to 43 days, on average (median of 22)
- Changes in Sales activity varied by market segment
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- Single family sales rose 5.5 percent; condo sales increased 1.4 percent; townhome sales fell 0.5 percent
- Traditional sales increased 4.8 percent; foreclosure sales dropped 21.1 percent; short sales fell 55.6 percent
- Previously owned sales were up 4.4 percent; new construction sales climbed 2.6 percent
Quotables
“Attractive interest rates have unleashed some of the pent-up demand from earlier this year,” said Todd Urbanski, President of Minneapolis Area REALTORS®. “But each price point, product type and area is unique.”
“Buyers are still very much motivated despite some challenges,” said Linda Rogers, President-Elect of Minneapolis Area REALTORS®. “It really shows the resilience of our region and the value of homeownership.”
From The Skinny Blog.
Mortgage Rates Jump
October 17, 2019
Despite this week’s uptick in mortgage rates, the housing market remains on the upswing with improvement in construction and home sales. While there has been a material weakness in manufacturing and consistent trade uncertainty, other economic trends like employment and homebuilder sentiment are encouraging.
Information provided by Freddie Mac.
Mortgage Rates Jump
October 17, 2019
Despite this week’s uptick in mortgage rates, the housing market remains on the upswing with improvement in construction and home sales. While there has been a material weakness in manufacturing and consistent trade uncertainty, other economic trends like employment and homebuilder sentiment are encouraging.
Information provided by Freddie Mac.
Weekly Market Report
For Week Ending October 5, 2019
With the 30-year fixed-rate mortgage approximately one percentage point lower than a year ago according to Freddie Mac, buyers are actively taking advantage. Home refinancing is also going strong and overall mortgage demand, which includes purchase mortgages as well as refinancings, is up 50% from a year ago. Lower mortgage rates help maintain housing affordability in the face of price appreciation across much of the country.
In the Twin Cities region, for the week ending October 5:
- New Listings decreased 2.7% to 1,517
- Pending Sales increased 1.5% to 1,180
- Inventory decreased 3.4% to 12,597
For the month of August:
- Median Sales Price increased 7.1% to $286,900
- Days on Market increased 2.5% to 41
- Percent of Original List Price Received decreased 0.2% to 99.0%
- Months Supply of Homes For Sale remained flat at 2.6
All comparisons are to 2018
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Weekly Market Report
For Week Ending September 28, 2019
The Commerce Department reported sales of newly built homes nationwide have surged 18% compared to a year ago and housing starts and building permits reached a 12-year high in August. This surge in both sales and new construction shows strong market confidence by both buyers and builders. However, further increases in new construction starts are still required to meet demand and bring more balance.
In the Twin Cities region, for the week ending September 28:
- New Listings decreased 3.3% to 1,546
- Pending Sales decreased 3.0% to 1,112
- Inventory decreased 3.6% to 12,716
For the month of August:
- Median Sales Price increased 7.0% to $286,875
- Days on Market increased 2.5% to 41
- Percent of Original List Price Received decreased 0.2% to 99.0%
- Months Supply of Homes For Sale remained flat at 2.6
All comparisons are to 2018
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
Weekly Market Report
For Week Ending September 21, 2019
This week the National Association of REALTORS® reported that nationally, August existing-home sales rose 2.6% from a year ago. Additionally, the Federal Reserve announced a rate cut for the second time in seven weeks, though this was widely expected and largely factored into mortgage rates already. A strong economy along with mortgage rates near their lows for the year continue to support healthy housing demand.
In the Twin Cities region, for the week ending September 21:
- New Listings increased 7.6% to 1,676
- Pending Sales decreased 2.4% to 1,158
- Inventory decreased 4.4% to 12,628
For the month of August:
- Median Sales Price increased 6.9% to $286,500
- Days on Market increased 2.5% to 41
- Percent of Original List Price Received decreased 0.2% to 99.0%
- Months Supply of Homes For Sale remained flat at 2.6
All comparisons are to 2018
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.
August Monthly Skinny Video
“There’s a lot of interest in the housing market and how a changing economy affects one’s position within it.”
Weekly Market Report
For Week Ending September 14, 2019
With kids back in school and the weather beginning to cool, the housing market begins its annual cooldown as well. With buyer and seller activity remaining strong, it will be at a little more relaxed pace than during the late spring and summer. While Halloween decorations may be adorning stores and soon adorn the stoops of homes around the country, the real estate market this fall is looking far from scary.
In the Twin Cities region, for the week ending September 14:
- New Listings decreased 1.3% to 1,820
- Pending Sales decreased 7.8% to 1,144
- Inventory decreased 4.8% to 12,423
For the month of August:
- Median Sales Price increased 6.7% to $286,000
- Days on Market increased 2.5% to 41
- Percent of Original List Price Received decreased 0.2% to 99.0%
- Months Supply of Homes For Sale decreased 3.8% to 2.5
All comparisons are to 2018
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.