Minneapolis, Minnesota (August 12, 2013) -The Twin Cities Housing Market was once again buzzing with housing activity in July. Rising rents combined with still-favorable prices and mortgage rates have resulted in ongoing housing recovery. House hunters continue to eye seller activity for hints of additional inventory. New listings rose a healthy 24.6 percent, the second-largest gain since April 2010. Buyers have 15,671 properties from which to choose – 13.0 percent fewer than in July 2012 but still marking the smallest year-over-year decline in inventory in more than two years.
The overall median sales price was $208,757, up 17.2 percent compared to July 2012. A shift in sales type is driving this price growth. As recently as July 2011, foreclosures and short sales together comprised 45.4 percent of all sales activity. In July 2013, these two distressed segments made up just 20.6 percent of all sales. On the seller side, the percentage of all new listings that were distressed in July fell to 17.9 percent, down from 41.2 percent in July 2011.
“If you want to see the type and price of properties that will sell next month, look at what sellers are listing this month and last month,” said Andy Fazendin, President of the Minneapolis Area Association of REALTORS® (MAAR). “Banks are showing a decline in distressed listing activity, which bodes well for ongoing recovery.”
New listings were up 24.6 percent overall, but traditional seller activity surged 55.7 percent – the most in nearly ten years. Foreclosure new listings decreased 31.2 percent and short sale new listings fell 42.1 percent. With 17 straight months of year-over-year median price gains, multiple-offer situations and just 3.6 months’ supply of inventory, the same market that recently favored buyers is now tilting toward sellers. Homes are selling in an average of 72 days – the quickest pace in six and a half years. Sellers are receiving an average of 97.5 percent of their original list price – the highest ratio in just over seven years.
The traditional median sales price rose 3.6 percent to $224,900; the foreclosure median sales price was up 11.6 percent to $135,000; the short sale median sales price increased 18.6 percent to $153,000. On average, traditional homes sold in 62 days for 97.6 percent of original list price, foreclosures sold in 83 days for 98.3 percent of original list price and short sales lagged at 166 days and 93.8 percent of original list price in the Twin Cities Housing Market.
“Sales and listing activity remained strong during July,” said Emily Green, MAAR President-Elect. “Consumer demand has withstood marginal mortgage rate increases, and traditional seller activity is on the mend.”
All information is according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from NorthstarMLS. MAAR is the leading regional advocate and provider of information services and research on the real estate industry for brokers, real estate professionals and the public. MAAR serves the Twin Cities 13-county metro area and western Wisconsin. 10K Research and Marketing, LLC is a wholly owned subsidiary of MAAR.
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Great News for Pending Sales from Minneapolis Area Association of Realtors Today!
May was an impressive month for the 13-county Twin Cities residential real estate market. With 5,872 pending sales, buyer demand continued its ascent, surging 18.5 percent to its highest level since June 2005. Seller activity was also up, as new listings rose 26.2 percent to 8,332 units, representing the largest gain in new listings since January 2006 and the highest number since April 2010. Buyers have 14,375 properties to choose from – 22.3 percent fewer than in May 2012 but 11.6 percent more than in January 2013.
The median sales price for the metro area rose 15.1 percent to $194,450. That’s the highest median sales price since August 2008. A shift in product type is driving this improvement. As recently as February 2011, foreclosures and short sales occupied 61.5% of all sales activity. In May 2013, these two distressed segments together comprised just 26.9 percent of all sales. The percentage of all new listings that were distressed in May 2013 fell to 18.6 percent, its lowest level since September 2007.
“With the recent disparity between massive buyer demand and sluggish seller supply, it is encouraging to see a substantial increase in traditional listings,” said Andy Fazendin, President of the Minneapolis Area Association of REALTORS® (MAAR).
Although new listings were up 26.2 percent overall, traditional new listings were up 49.9 percent, while foreclosure new listings were down 15.4 percent and short sale new listings were down 43.4 percent. With 15 straight months of year-over-year price gains, multiple-offer situations and just 3.4 months’ supply of inventory, the market landscape that once favored buyers has tilted toward sellers.
The traditional median sales price was up 7.3 percent to $220,000; the foreclosure median sales price was up 18.7 percent to $137,700; the short sale median sales price was up 4.4 percent to $141,000. On average, traditional homes sold in 78 days, foreclosures sold in 87 days and short sales lagged at 174 days.
“This is still about product mix. We once filled our grocery bag with ramen noodles,” said Emily Green, MAAR President-Elect. “Today we’re buying organic, grass-fed sirloin steaks. Grocery prices haven’t increased much, but the value of what we’re buying has. Traditional homes tend to be of a higher quality and better maintained than foreclosures or short sales.”
Twin Cities Real Estate Home Sales October 15, 2012
In between days. The spring and summer selling seasons are well behind us, and the holiday slowdown is well ahead of us (except in some department stores). As the days grow shorter, housing numbers may not be as thrilling as they were in recent months, but the trends remain the same. Compared to last year, home sales are regularly up and inventory figures are down, including months of supply. Sales and prices will surely drop, but there is reason for optimism through the end of the year, providing a cure to several years of little to hold on to.
In the Twin Cities region, for the week ending October 6:
• New Listings increased 2.8% to 1,301
• Pending Sales increased 33.5% to 1,049
• Inventory decreased 28.6% to 16,113
For the month of September:
• Median Sales Price increased 12.6% to $174,500
• Days on Market decreased 28.5% to 101
• Percent of Original List Price Received increased 4.0% to 94.8%
• Months Supply of Inventory decreased 40.1% to 4.0
It’s in the Star Tribune, so now it’s official, the Real Estate Recovery is underway!
The local news media is reflecting what us front-liners have been seeing for the past 4+ months. I’ve noticed over my 15 years of Selling Real Estate in Minnesota that the news headlines are always about 4-6 months behind the trends we are seeing. I’m not finding fault with the media coverage, quite the opposite! Their coverage is a fantastic sign of the stability of the recovery.
News organizations need to be sure of a situation prior to declaring it a solid trend. The movement in the Real Estate Market needs to go in a stable direction for at least a few months before a trend can be identified. By these standards, the news media needs to be a few months behind in reporting the data we have been seeing for months. As an individual Realtor, I sell 40-50 homes per year, half of that number is Selling Listed Property and the other half is Representing Buyers. The numbers of homes we sell in a year is relatively small, compared to the volume of homes sold in a year. As a Realtor in Apple Valley, Eagan, Lakeville, Burnsville, Savage, Prior Lake, Farmington and Rosemount, properties I sell are specific to our area and might not reflect the overall Twin Cities Metro Trends. Just last week, a friend of mine who works for Remax Results in Minneapolis was telling me she is experiencing lots of difficulty with home inspections and problems arising which prevent the sale of the home. I have not had the same problem with inspections or conditions of homes, however the inventory of properties we are selling South of the River is generally just 10-40 years old. This is an example of how our experiences can be so different. I guess that’s why I am always excited when I see the positive news reported, it’s a confirmation that the trend is stable enough to be talked about in the major news organizations. It’s reassurance the recovery my clients are experiencing as we sell their homes in Apple Valley, Eagan or Lakeville is the same throughout the Twin Cities!
The Star Tribune article was written by Jim Buchta, it includes data from the Standard & Poor’s/Case Shiller Index and quotes from CoreLogic.
If you wish to explore your options to make a Move, now that the marketplace is getting brighter, give me a call at 612-889-6496 to get started. Remember starting early with a Market Analysis of your home can put more money in your pocket, see Sell your Home for $10,000 more this Spring!
The number of sales has increased in the Minneapolis and St. Paul metro areas over the past 12 months, according to the data published in The Thing by the Minneapolis Area Association of Realtors.
The Thing is a powerful graph with various data points which you can control, I find it fascinating to watch the various trends. Yes, I said fascinating, that is how much of a Real Estate geek I am…
Are home prices in Minneapolis going up? I see great news in the graphs for our local marketplace. For example, Apple Valley real estate statistics show a decrease in Median House Prices have declined an additional 5.9% from June 2011 through May 2012. The decline in Median Price doesn’t tell the full story.
My positive outlook comes from selecting a few additional features on the graph. Such as:
Number of Closed Sales in Apple Valley from June 2011 to May 2012
Traditional Closed Sales Up 35%
Foreclosure Closed Sales Up 18%
Short Sale Closed Sales Up 27%
Pending Sales reflect the same large increases in the number of sales with a whooping 56% increase in the Number of Pending Sales in Apple Valley compared to last year.
For more information visit the Market Statistics page on our website. Note that on the left side column you can control which suburb or area the graph shows. You can also control other factors such as housing type and price ranges.
It’s a wonderful source for Minneapolis real estate information, and real estate information for the surrounding suburbs including Burnsville, Apple Valley, Eagan, Rosemount, Lakeville, Farmington and others.
Let’s hope the trend continues. I believe we will have a slowing market as summer finishes out and we get into Election Season. It seems every 4 years when there is a Presidential Election our marketplace holds it’s breath a little.
I do anticipate a very busy Spring Market next year in 2013. It’s never too early to start preparing your home, let me know if you would like to schedule a quick walk-thru to establish your ‘To-Do’ list for the winter.
We always love hearing from you!
The report card for Twin Cities Market Activity this week showed higher grades than last year at this time for both buyers and sellers. Activity levels are higher on both sides, which is indicative of recovering confidence in the local market. Prices in certain areas have already turned a corner, and it is not unreasonable to expect a continuation of this trend. As summer begins to swelter, also keep a watchful eye on active listings, absorption rates, days on market and percent of list price received. Being schooled in these metrics is like having an open book during the final exam.
In the Twin Cities region, for the week ending June 9:
• New Listings increased 0.4% to 1,582
• Pending Sales increased 29.4% to 1,231
• Inventory decreased 31.0% to 17,540
For the month of May:
• Median Sales Price increased 10.5% to $169,000
• Days on Market decreased 19.6% to 125
• Percent of Original List Price Received increased 3.8% to 94.6%
• Months Supply of Inventory decreased 44.7% to 4.6
Market sentiment can become a self-fulfilling prophecy.
Weekly Real Estate Market Activity Report
Just as negative economic news sent a chill through the housing industry over the last several years, a newly confident consumer buying up excess inventory and further housing-related sundries helps stabilize and support home values. Some sellers are even starting to see rising prices. The numbers are beginning to reflect the fact that multiple offers on homes for sale are now more than anecdotal conversation between real estate professionals. For this week, new listings were down while purchase contracts were up compared to the same week in April 2011.
In the Twin Cities region, for the week ending April 7:
• New Listings decreased 19.0% to 1,411
• Pending Sales increased 15.5% to 1,036
• Inventory decreased 27.3% to 17,289
For the month of March:
• Median Sales Price increased 7.1% to $149,900
• Days on Market decreased 9.4% to 145
• Percent of Original List Price Received increased 3.8% to 92.1%
• Months Supply of Inventory decreased 38.5% to 4.7
Where has the Twin Cities real estate market been and where is it heading?
I like this video, the message is positive, but cautious. The information about local market trends matchs up with what I am experiencing in South of River real estate trends, including Burnsville, Apple Valley, Lakeville, Eagan, and Savage. The data for Farmington and Rosemount isn’t quite as positive yet, but will likely follow. It’s worth the watch!
This monthly summary provides an overview of current trends and projections for future activity. Narrated by Andy Fazendin (2012 President-Elect, Minneapolis Area Association of REALTORS®), video produced by Chelsie Lopez. Click the embedded link…
Whose Market Is It Anyway? Tune in to Learn the Score…
Minneapolis Area Association of Realtors, The Skinny Report! 2011 Annual Wrap-Up: Lower Prices but a Healthier Market!
The annual wrap-up from the Minneapolis Area Association of Realtors is a concise, information packed article. I thought it was well worth sharing. I’ve edited the article slightly to fit the space available. To read the full story go to the most recent, “The Skinny” by the Minneapolis Area Association of Realtors.
Decreased supply, high demand and low prices are among the encouraging developments in 2011 that give cause for optimism in 2012. The supply of homes for sale decreased dramatically, and absorption rates improved to levels not seen since 2005. Unprecedented low interest rates and record housing affordability resulted in an 8.2 percent increase in home sales for the area.
2011 by the Numbers
• Consumers purchased 41,429 homes, up 8.2 percent from 2010 (excluding 2009)the highest since 2006.
• Inventory levels dropped 28.7 percent from 2010 and are at the lowest level in 8 years.
• Supply of inventory(time it would take to sell all active listings)—dropped 36.5 percent to 4.5 months.
• Precisely 50.0 % of sales were foreclosures or short sales, up from 47.9 % in 2010 and 48.9 % in 2009.
• The median sales price fell 11.7 percent to $150,000.
“We are pleased with the recovery we saw in 2011,” said Richard Tucker, President of the St. Paul Area Association of REALTORS®.
“Median sales price reflects the mix of properties sold during the year—and in 2011 a lot moved in that lower bracket. Price increases will be the final piece of the recovery.” Distressed properties were the driving factor of home prices, selling for roughly 60 cents on the dollar compared to traditional homes.
“Homeowners need to remember that median sales price does a better job of reflecting what’s going off the market as a whole than representing the home values in a given area—each area is unique,” said Cari Linn, President of the Minneapolis Area Association of REALTORS®.
Improvements in the local economy will boost the Twin Cities real estate market in 2012. The outlook is positive: steady hiring, lessening layoffs and record low unemployment are all reasons the area continues to outperform the nation.
If you would like more information regarding your city, or a precise market analysis for your home, just let me know. You can call or email me from the link at the top of the page. We are always happy to assist you.
The Minneapolis Association of Realtors publishes a Weekly Report offering details of the local marketplace. Information in the report is for the entire Minneapolis and St. Paul metropolitan real estate market. Data is relevant for South of the River home owners too. They also offer other statistics and charts, all of which can be found on our Market Statistics page. You can also visit the Minneapolis Association of Realtors Home page. The following information is the report in it’s entirety.
For the week ending April 23, New Listings in the Twin Cities were down 30.7 percent from the same week last year. A total of 1,487 new homes entered the marketplace, representing 16 consecutive weeks of double-digit year-over-year declines for New Listings.
Pending Sales were down 25.2 percent to 886 purchase agreements signed, representing 10 consecutive weeks of double-digit year-over-year declines in Pending Sales.
Inventory levels dipped briefly at this time last year, which helped to end 11 consecutive weeks of progressively growing year-over-year inventory declines. At 22,917 Active Listings for Sale, there are 13.0 percent fewer homes for sale than at this time last year.
As last year’s tax credit-induced spike in market activity migrates through our lens, the story should change significantly. In the coming weeks, the numbers will show gains over the post-tax-credit period instead of the year-over-year declines to which we’ve grown accustomed.