New Listings and Pending Sales
New Listings and Pending Sales
Favorable rates and weather spur home buying in Twin Cities
February 22, 2020
Latest housing report also shows falling inventory and rising prices
According to the latest housing report from the Minneapolis Area REALTORS® and the Saint Paul Association of REALTORS®, Twin Cities residential real estate started 2020 on solid but still uneven footing. Buyers were eager to ignite the spring market early, spurred by incredibly low mortgage rates and favorable weather, especially compared to last year. Tempering the market are falling inventory and rising prices.
“Buyers were again spoiled by rates that no one expected would be this low,” said Linda Rogers, President of Minneapolis Area REALTORS®. “That’s fueled more sales activity but we’re still missing the inventory piece.”
Sellers listed fewer homes for sale while buyers signed more purchase agreements and closed more deals. As a result, the number of homes for sale was almost 15 percent lower than last January. The supply squeeze wasn’t felt evenly across price points, though. While inventory of homes priced below $250,000 fell, the number of listings priced between $250,000 and $500,000 as well as $500,000 to $1,000,000 increased last month.
“The year is off to a solid start and metro area communities each have a unique story to tell when it comes to housing availability and price,” said Patrick Ruble, President of St. Paul Area Association of REALTORS®.
Some of the most competitive markets experiencing strong price growth are those with relatively higher levels of affordable or entry-level homes, such as Fridley, Vadnais Heights, Richfield, Brooklyn Center and Bloomington. That’s where multiple offers and homes selling for over list price are more common. Both millennial first-time buyers and downsizing empty nesters are competing over this limited supply of affordable homes close to the core cities. The move-up and upper-bracket home price segments are more balanced and better supplied.
January 2020 by the numbers (compared to a year ago)
- Sellers listed 4,330 properties on the market, a 1.8 percent decrease from last January
- Buyers closed on 2,870 homes, a 5.4 percent increase
- Inventory levels declined 14.9 percent to 7,595 units
- Months Supply of Inventory was down 16.7 percent to 5 months (5-6 months is balanced)
- The Median Sales Price rose 4.2 percent to $270,000
- Cumulative Days on Market increased 1.5 percent to 66 days, on average (median of 43)
- Changes in Sales activity varied by market segment
- Single family sales rose 5.5 percent; condo sales fell 3.5 percent; townhome sales rose 11.7 percent
- Traditional sales increased 7.1 percent; foreclosure sales dropped 26.0 percent; short sales fell 52.6 percent
- Previously owned sales were up 5.5 percent; new construction sales climbed 11.1 percent
New Listings and Pending Sales
New Listings and Pending Sales
Despite tight market Twin Cities real estate activity up in 2019
The Twin Cities housing market continued to show steady growth in 2019 according to the annual market wrap-up from the Minneapolis Area REALTORS® and the St. Paul Area Association of REALTORS®. At a joint news conference in St. Paul, the associations announced a growing economy, favorable rates and a persistent scarcity of homes for sale have uplifted home prices for eight consecutive years. Lower mortgage rates helped offset declining affordability brought on by rising home prices.
“In our market, like others across the country, lack of housing inventory has been a recurring theme for buyers. It continued in 2019 as buyers, looking for entry level options and more affordable choices, felt the most pressure. Buyers, however, have remained persistent resulting in gains, both in sales volume and price appreciation,” said Patrick Ruble, President of the Saint Paul Area Association of REALTORS®. “Fortunately, the region’s economy continues to grow, unemployment remains low and we are seeing growth in wages. We have a healthy market and look forward to some of the sticking points, such as the limited inventory, easing in the coming year.”
Sellers reversed three years of declines with a modest 0.2 percent increase in new listings in 2019. Buyers overturned a sales decline in 2018 with a 0.8 percent increase in purchases. The ongoing housing shortage has led to a competitive environment where multiple offers are commonplace, frustrating some consumers. Therefore, sellers are receiving strong offers in near record time. Market times did, however, increase 2.1 percent from 2018 while the ratio of sold to list price declined 0.1 percent. These two metrics could be early indicators of a shifting balance.
“Overall 2019 was a good year for real estate. After a slow start, activity picked up once rates fell back below 4.0 percent mid-year,” said Linda Rogers, President of the Minneapolis Area REALTORS®. “The second half of the year saw consistent sales gains, as record prices and declining affordability were offset by favorable rates and wage growth. Buyers were persistent despite tight inventory—particularly under $300,000. That’s no surprise, as the Twin Cities are a wonderful place to live, work and play.”
Rates remained attractive during the year. Despite starting the year around 4.5 percent, mortgage rates fell to 3.7 by year-end. Single family and new construction sales led the pack; so it’s no surprise that four-bedroom homes and homes over 2,500 square feet saw the largest gains. There’s still a “tale of two markets” dynamic at play: the under $350,000 or first-time buyer segment is severely undersupplied but also in high demand. The move-up market for homes over $500,000 is much better supplied, giving buyers more options and negotiating room.
“The Twin Cities housing market is a reflection of what’s been happening statewide,” said Bob Clark, President of the Minnesota Association of REALTORS®. “Realtors across Minnesota finished the year with slight increases in closings, new listings and continued growth in home prices.”
2019 by the Numbers
Sellers listed 76,345 properties on the market, a 0.2 percent increase from 2018
Buyers closed on 59,843 homes, a 0.8 percent increase from 2018
Inventory levels for December fell 19.6 percent compared to 2018 to 7,431 units
Months Supply of Inventory was down 21.2 percent o 1.5 months
The Median Sales Price rose 5.7 percent to $280,000, a record high
Cumulative Days on Market increased 2.1 percent to 49 days, on average (median of 23)
Changes in sales activity varied by market segment
Single-family sales increased 1.5 percent; condo sales fell 1.7 percent; townhome sales were down 1.4 percent
Traditional sales rose 1.8 percent; foreclosure sales decreased 31.9 percent; short sales fell 35.2 percent
Previously-owned sales increased 0.3 percent; new construction sales rose 6.9 percent
For other year-end residential real estate information and for stand-alone December 2019 data, visit www.mplsrealtor.com.
New Listings and Pending Sales
Listings, Sales, Prices: All Rise
November 19, 2019
The Twin Cities real estate market started the fourth quarter of 2019 on a strong note with buyer and seller activity rising in October compared to 2018. Buoyed by historically low interest rates, the number of new listings and pending sales rose last month and the median price of a home also increased.
New listings increased by 3.8 percent last month to nearly 6,300 properties on the market. Pending home sales increased 4.9 percent in October, continuing their steady rise since mortgage rates dipped below 4.0 percent in June. The increase also puts the number of pending sales in positive territory for the year. Continuing the market’s upward trend, the median price of a home in the Twin Cities rose to $280,000 in October, a 5.7 percent increase over last year.
October reversed a trend of rising days on market and continued September’s reversal of sellers accepting a slightly lower share of their list price compared to last year. With increased sales activity, quicker market times and sellers yielding strong offers, it’s no wonder more sellers decided to list. There are still some signs that the market is rebalancing, but buyers awaiting spooky news could see their patience tested based on October numbers.
While inventory has grown this year, supply remains tight for first-time buyers and downsizing households competing for homes under $350,000. At this price point, multiple offers and homes selling for over list price in record time is still common. Builders struggle to replenish inventory due to high costs, a labor shortage and regulatory constraints. The shortage of affordable homes has prompted many owners to stay put. With 2.3 months of supply, the Twin Cities market is still significantly undersupplied.
October 2019 by the Numbers (compared to a year ago)
- Sellers listed 6,258 properties on the market, a 3.8 percent increase from last October
- Buyers closed on 5,391 homes, a 1.3 percent increase
- Inventory levels decreased 5.8 percent from last October to 11,607 units
- Months Supply of Inventory was down 8.0 percent to 3 months
- The Median Sales Price rose 5.7 percent to $280,000
- Cumulative Days on Market declined 4.2 percent to 46 days, on average (median of 25)
- 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
“Interest rates are boosting buyer confidence,” said Todd Urbanski, President of Minneapolis Area REALTORS®. “Consumers may also be realizing that some of their fears around the market and economy could be overstated.”
“The latest figures show our key metrics returning to growth,” said Linda Rogers, President-Elect of Minneapolis Area REALTORS®. “We expect Minnesota and the Midwest to fare well should that change.”
From The Skinny Blog.
Things still feeling pretty stable out there, thanks for asking
September 18, 2019
With two-thirds of the year in the books, we’re getting a clearer picture of where the housing market stands. The latest numbers for Twin Cities residential real estate show stability along with signs of deceleration. The median sales price continued to rise, landing at $286,800 for the month. Pending sales—a measure of signed contracts and future demand—rose 3.2 percent but are down slightly for the year so far. New listings slipped 2.0 percent, thwarting some buyers’ hopes of taking advantage of historically low rates. Closed sales were down 0.9 percent for the month and are down 1.4 percent for the year. One sign of market shift is days on market, which rose 2.5 percent year-over-year. Market times remain swift, but that’s the fourth year-over-year increase this year. Another sign of a changing market is the ratio of sold to list price. Sellers have been accepting a slightly lower share of their list price compared to the year prior for seven of the last eight months. This, along with other indicators, suggests the market is rebalancing. The landscape seems to be improving for buyers, even though sellers still have strong pricing power, favorable negotiating leverage and quick market times.
The number of active listings for sale has been rising this year. Even so, the market remains tight—particularly for first-time buyers and downsizers competing in the sub-$300,000 segment where multiple offers and homes selling for over list price are commonplace. With just 2.5 months of supply, the Twin Cities is still significantly undersupplied. The move-up and upper-bracket segments are less competitive and better supplied. Given some of the recent economic uncertainty, it’s worth noting that the Twin Cities market is well-positioned to withstand an economic downturn.
August 2019 by the Numbers (compared to a year ago)
Sellers listed 7,678 properties on the market, a 2.0 percent decrease from last August
Buyers closed on 6,646 homes, a 0.9 percent decrease
Inventory levels decreased 5.5 percent from last August to 12,238 units
Months Supply of Inventory was down 3.8 percent to 2.5 months
The Median Sales Price rose 7.0 percent to $286,800, a record high for August
Cumulative Days on Market rose 2.5 percent to 41 days, on average (median of 21)
Changes in Sales activity varied by market segment
Single family sales rose 1.4 percent; condo sales decreased 6.2 percent; townhome sales fell 7.8 percent
Traditional sales increased 0.1 percent; foreclosure sales dropped 40.9 percent; short sales fell 45.5 percent
Previously owned sales were down 0.1 percent; new construction sales declined 5.0 percent
Quotables
“Some think the fall market isn’t for them, but tight conditions and favorable rates suggest momentum moving into 2020,” said Todd Urbanski, President of Minneapolis Area REALTORS®. “We’re at a moment when sellers are enjoying their position while buyers are taking advantage of lower than expected interest rates and more options.”
“Most markets remain stable across the metro,” said Linda Rogers, President-Elect of Minneapolis Area REALTORS®. “While there is a good amount of local variation, we just don’t see that many signs for concern.”
From The Skinny Blog.