As another new year approaches, we find ourselves settling in for the holidays, which typically come with slowed real estate activity. In the first week of the full holiday shopping season, we saw sales increase. We're talking about residential real estate, of course, although retail performed surprisingly well, too. Sellers listed fewer properties during the week, choosing instead to hunker down in their living rooms rich with the aromas of pine-scented candles and cinnamon cider sticks.
In the Twin Cities region, for the week ending December 3:
New Listings decreased 9.3% to 1,006
Pending Sales increased 36.4% to 885
Inventory decreased 22.9% to 20,031
For the month of November:
Median Sales Price decreased 9.9% to $149,500
Days on Market decreased 1.8% to 135
Percent of Original List Price Received increased 1.0% to 90.9%
Months Supply of Inventory decreased 30.5% to 5.7
The attached Weekly Market Activity Report is produced by the Minneapolis Area Association of REALTORS® (MAAR) for REALTOR® members and interested parties on a weekly basis. Use it to further your understanding of the Twin Cities 13-county residential real estate marketplace.
If you follow our weekly notes with even a sidelong glance, you know that the story of the market in 2011 has been increased sales and decreased inventory. That's all well and good, but consumers and the media want to talk about one thing: Price. Ideally, sellers seek multiple offers. This signals strong demand and competitive bidding. Buyers want to know that purchasing a home is a financially sound investment. Consumers, whether buyer or seller, want to know when we'll be establishing a stable real estate foundation again. Which is exactly why the tale of increased sales activity and healthy inventory absorption matters.
In the Twin Cities region, for the week ending December 24:
New Listings decreased 9.6% to 596
Pending Sales increased 48.4% to 607
Inventory decreased 24.4% to 18,666
For the month of November:
Median Sales Price decreased 10.2% to $149,000
Days on Market decreased 1.8% to 135
Percent of Original List Price Received increased 1.0% to 90.9%
Months Supply of Inventory decreased 29.8% to 5.7
Inventory decreased 24.4% to 18,666
The attached Weekly Market Activity Report is produced by the Minneapolis Area Association of REALTORS® (MAAR) for REALTOR® members and interested parties on a weekly basis. Use it to further your understanding of the Twin Cities 13-county residential real estate marketplace.
Tryptophan and chatty in-laws were not able to curb the appetite of local home buyers, as purchase activity easily gobbled up last year's levels. Sellers were apparently stuffed and lethargic, as they brought fewer new properties onto the market than during the same holiday week last year. As we approach the slowest time of year for residential activity, expect transacted dollar volumes and sales counts to weaken from the spring and summer of this year. Keep watching inventory declines; they could have a measurable impact on the Spring 2012 market.
In the Twin Cities region, for the week ending November 26:
New Listings decreased 9.1% to 601
Pending Sales increased 46.8% to 574
Inventory decreased 22.8% to 20,318
For the month of October:
Median Sales Price decreased 9.6% to $154,500
Days on Market decreased 0.5% to 134
Percent of Original List Price Received increased 0.9% to 91.2%
Months Supply of Inventory decreased 27.6% to 6.3
The attached Weekly Market Activity Report is produced by the Minneapolis Area Association of REALTORS® (MAAR) for REALTOR® members and interested parties on a weekly basis. Use it to further your understanding of the Twin Cities 13-county residential real estate marketplace.
This week's market scorecard shows increased activity levels for buyers and a modest decline in seller activity. Consumer purchase demand posted a welcomed increase over the same week in 2010. Sellers brought fewer new listings onto the market than last year. Home purchase activity is still one of the most paramount drivers of sustained recovery. The key then becomes determining the overall market momentum.
In the Twin Cities region, for the week ending October 22:
New Listings decreased 15.8% to 1,100
Pending Sales increased 28.8% to 822
Inventory decreased 21.5% to 22,132
For the month of September:
Median Sales Price decreased 7.2% to $155,000
Days on Market increased 5.5% to 137
Percent of Original List Price Received increased 0.3% to 91.1%
Months Supply of Inventory decreased 21.9% to 6.8
The attached Weekly Market Activity Report is produced by the Minneapolis Area Association of REALTORS® (MAAR) for REALTOR® members and interested parties on a weekly basis. Use it to further your understanding of the Twin Cities 13-county residential real estate marketplace.
This week's market scorecard shows increased activity levels for buyers and a modest decline in seller activity. Consumer purchase demand posted a welcomed increase over the same week in 2010. Sellers brought fewer new listings onto the market than last year. Home purchase activity is still one of the most paramount drivers of sustained recovery. The key then becomes determining the overall market momentum.
In the Twin Cities region, for the week ending October 22:
New Listings decreased 15.8% to 1,100
Pending Sales increased 28.8% to 822
Inventory decreased 21.5% to 22,132
For the month of September:
Median Sales Price decreased 7.2% to $155,000
Days on Market increased 5.5% to 137
Percent of Original List Price Received increased 0.3% to 91.1%
Months Supply of Inventory decreased 21.9% to 6.8
The attached Weekly Market Activity Report is produced by the Minneapolis Area Association of REALTORS® (MAAR) for REALTOR® members and interested parties on a weekly basis. Use it to further your understanding of the Twin Cities 13-county residential real estate marketplace.
It seems like every passing week brings not one but two new record declines: inventory levels and mortgage rates. The week ending October 8 was certainly no exception. The number of active listings on the market fell 21.0 percent to 22,434 units. Mortgage rates fell below 4.0 percent for the first time ever. The last time inventory was that low? February 2009.
It's partly due to sellers not contributing many properties to the bin and partly due to buyers doing their part to absorb existing supply. New listings were down 13.0 percent to 1,262 for the week, and pending sales were up 48.3 percent to 851 purchase agreements signed.
The keen observers noticed that September's preliminary monthly numbers came out last week. This round, those preliminary figures were revised slightly as new status changes filtered in. A few noteworthy observations:
Prices posted the smallest year-over-year decline in eight months.
Days on market posted its smallest increase in nine months.
Sellers received more of their asking price for the second month in a row.
Absorption rates posted their third consecutive month of improvements.
The attached Weekly Market Activity Report is produced by the Minneapolis Area Association of REALTORS® (MAAR) for REALTOR® members and interested parties on a weekly basis. Use it to further your understanding of the Twin Cities 13-county residential real estate marketplace.
With the final week of the third quarter in the books, buyers posted solid gains over last year's activity levels while sellers listed fewer properties on the market. As is typical for this time of year, expect some seasonal changes to start taking hold. Market activity may slow from one month to the next but should still show favorable year-over-year progress. The lending climate improved even more last week as interest rates dipped below 4.0 percent for the first time ever.
In the Twin Cities region, for the week ending October 1:
New Listings decreased 21.0% to 1,219
Pending Sales increased 32.7% to 926
Inventory decreased 22.8% to 23,177
For the month of September:
Median Sales Price decreased 6.0% to $156,000
Days on Market increased 4.6% to 137
Percent of Original List Price Received increase 0.5% to 91.2%
New Listings:Sellers posted their smallest decline in newly listed homes in three months. The 1,320 new properties were 4.8 percent fewer than the same week last year. What's causing the shift? New listings dropped at this time last year while current levels held fairly even with last week.
Active Supply:The 22.6 percent year-over-year drop in inventory levels broke last week's all-time record. Those shopping for homes will choose from 23,351 properties as opposed to the 30,178 properties at this time last year.
Buyer Demand:The 2010 and 2011 sales trendlines continue to mimic one another, with one important exception. This year's trendline is, on average, 260 sales greater than last year's levels over the past few months.
The Verdict:Falling supply and relatively strong sales volumes should theoretically bolster prices. Again, there's a notable exception: economic uncertainty and squeezed household budgets are all the motivation many buyers need to hunt for bargains – including lower-priced traditional properties as well as great opportunities in the lender-mediated housing segment.
