Barb Duthler

Data from the Census Bureau’s Survey of Construction (SOC) and the National Association of Home Builders shows that 62.5 percent of all new construction homes started in 2018 were built as part of a community or homeowner’s association, up from 47.6% in 2009. These associations are typically created when the developments are built to maintain common areas of the developments and to enforce private deed restrictions, which often detail requirements for the exterior appearance and upkeep of properties.

In the Twin Cities region, for the week ending December 28:

• New Listings decreased 15.6% to 259
• Pending Sales decreased 3.7% to 495
• Inventory decreased 14.0% to 8,354

For the month of November:

• Median Sales Price increased 5.6% to $279,900
• Days on Market decreased 1.9% to 51
• Percent of Original List Price Received increased 0.2% to 97.5%
• Months Supply of Homes For Sale decreased 4.5% to 2.1

All comparisons are to 2018
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

As we close out the last weeks of the year, both buyers and sellers turn their focus from the transacting of homes to preparations for celebrating the holidays with their family and friends. Renewed interest by both buyers and sellers will come in the New Year and with it, the expectations for a strong housing market in 2020.

In the Twin Cities region, for the week ending December 21:

• New Listings increased 6.1% to 524
• Pending Sales decreased 1.3% to 706
• Inventory decreased 13.1% to 8,805

For the month of November:

• Median Sales Price increased 5.6% to $279,900
• Days on Market decreased 1.9% to 51
• Percent of Original List Price Received increased 0.2% to 97.5%
• Months Supply of Homes For Sale decreased 9.1% to 2.0

All comparisons are to 2018
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

This week the Federal Reserve, in its final meeting of the year, voted to leave its key benchmark rate unchanged, which was widely expected. The Fed also suggested that rate changes are unlikely in the coming months. While the rate decisions by the Federal Reserve do not directly affect mortgage rates, Federal Reserve policy does affect the economic markets overall. While mortgage rates have trended up slightly in recent weeks, they remain nearly one percent lower than a year ago. Fed Chair Jerome Powell was upbeat on the economy going forward: “with a strong household sector and supportive monetary and financial conditions, we expect moderate growth to continue.”

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

• New Listings decreased 4.1% to 696
• Pending Sales decreased 0.5% to 744
• Inventory decreased 10.0% to 9,399

For the month of November:

• Median Sales Price increased 5.6% to $279,900
• Days on Market decreased 1.9% to 51
• Percent of Original List Price Received increased 0.2% to 97.5%
• Months Supply of Homes For Sale decreased 9.1% to 2.0

All comparisons are to 2018
Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Both conforming Conventional loan and FHA loan limits are increasing starting January 1, 2020 in an effort to trend higher with increasing home prices. These new higher limits will expand the pool of buyers able to take advantage of the most common financing options for primary residences. Additionally, the VA has announced that due to the Blue Water Navy Veterans Act of 2019, VA loans will no longer have fixed limits starting January 1, 2020, which should raise the number of active duty military and veterans that can take advantage of this great program. Of course in all cases, the borrower must still qualify for the loan amounts they are seeking, regardless of the caps.

In the Twin Cities region, for the week ending December 7:

• New Listings increased 9.6% to 867
• Pending Sales increased 19.2% to 905
• Inventory decreased 8.8% to 9,822

For the month of November:

• Median Sales Price increased 5.6% to $279,900
• Days on Market decreased 1.9% to 51
• Percent of Original List Price Received increased 0.2% to 97.5%
• Months Supply of Homes For Sale decreased 9.1% to 2.0

All comparisons are to 2018

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Americans across the country sat down to Thanksgiving with friends and family this week. Real estate activity took a backseat to the preparation of meals and the hosting of guests, where securing second helpings were more important than securing second homes. As we enter the final weeks of 2019, there is strength and optimism in the housing market, but at a pace that is muted due to the holiday season. The relatively low levels of inventory coupled with continued strong buyer activity are the common refrains across much of the country.

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

• New Listings decreased 43.6% to 501
• Pending Sales decreased 26.3% to 702
• Inventory decreased 6.6% to 10,461

For the month of October:

• Median Sales Price increased 5.7% to $280,000
• Days on Market decreased 4.2% to 46
• Percent of Original List Price Received increased 0.2% to 98.1%
• Months Supply of Homes For Sale decreased 4.0% to 2.4

All comparisons are to 2018

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Residential new construction activity continues to rise nationally. The U.S. Commerce Department reports that new housing permits rose 5% in October to a new 12-year high of 1.46 million units. Lawrence Yun, the National Association of REALTORS® chief economist, called the latest figures “tremendously good news for the housing sector.” With builder sentiment and buyer activity remaining strong, it is widely expected that new construction will continue to remain brisk in the coming months.

In the Twin Cities region, for the week ending November 23:

• New Listings increased 74.1% to 928
• Pending Sales increased 39.8% to 966
• Inventory decreased 6.6% to 10,724

For the month of October:

• Median Sales Price increased 5.7% to $280,000
• Days on Market decreased 4.2% to 46
• Percent of Original List Price Received increased 0.1% to 98.1%
• Months Supply of Homes For Sale decreased 4.0% to 2.4

All comparisons are to 2018

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

In the Federal Housing Administration’s 2019 Annual Report to Congress, the FHA announced their Mutual Mortgage Insurance Fund Capital Ratio stood at 4.84%, up from 2.76% last year and well above the 2% minimum required by Congress. This has prompted the National Association of REALTORS® to advocate for a reduction in FHA insurance premiums and eliminating the life-of-loan mortgage insurance requirement. While the FHA has not committed to any changes at this time, there is optimism for change in the future as the reserves continue to increase. With FHA loan market share at 11.4% in the 2019 report, any reduction in mortgage insurance costs would positively affect a large number of future borrowers.

In the Twin Cities region, for the week ending November 16:

• New Listings increased 6.2% to 1,028
• Pending Sales increased 6.3% to 999
• Inventory decreased 6.1% to 11,147

For the month of October:

• Median Sales Price increased 5.7% to $280,000
• Days on Market decreased 4.2% to 46
• Percent of Original List Price Received increased 0.1% to 98.1%
• Months Supply of Homes For Sale decreased 4.0% to 2.4

All comparisons are to 2018

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.