Weekly Market Activity Report

The number of homes for sale in the Twin Cities metro area continues to decline relative to a year ago. As of Monday morning this week, there were 26,674 homes for sale in the region, down 20.9 percent from a year ago. In other words, we've lost 1 in 5 homes in our inventory in the last year.

Sales are a different story. For the week ending June 20, there were 1,156 signed purchase agreements, up 32.1 percent from the same week in 2008. That's the 12th week of the last 13 to feature a year-over-year increase in sales activity exceeding 20 percent.

We must bear in mind, however, that sales are only up in certain categories and price ranges. Year to date, traditional home sales (excluding foreclosures and short sales) are still down 17.8 percent from last year. New construction sales are down 21.7 percent from last year. And sales of homes priced above $350,000 are down 26.8 percent from a year ago. The lion's share of market activity is taking place in the lower price ranges this year.

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Weekly Market Report

As we near the halfway mark of 2009, the Twin Cities housing market continues to show a pattern of robust home sales and declining new listing activity. Setting aside fluctuations over the Memorial Day holiday, long-term market improvement can be seen when comparing 2009 to 2008.

There were 1,210 pending sales for the week ending June 13—a strong 33.8 percent increase from last year. There were 1,970 new homes added to the market during the same week, a decrease of 2.6 percent from the same week in 2008. That 2.6 percent decline in new listings is a much smaller drop than we have seen in recent months when there were typically year-over-year drops of 10 percent or stronger.

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June Twin Cities Real Estate Video Update

July $8,000 Tax Credit and First Time Home Buyer Class

Upon completion of this course graduates will be entitled to their choice of a FREE 1 YEAR HOME WARRANTY or FREE HOME INSPECTION.

$5.00 gift card to all who register in advance!!! (Pre-registration is greatly appreciated as it helps us in our planning.)

REGISTER ONLINE

REGISTER BY PHONE
612-237-6853

REGISTER BY EMAIL
bakruse@cbburnet.com

Reserve your spot now for our July 21st home buyer class. These classes are a loosely structured open forum so please bring any and all questions. We will break down the entire home buying process as well as the $8,000 tax credit.

Don't let a lack of information stop you from taking advantage of this amazing buyers market and your $8,000 tax credit.

Completion of this class also entitles you to your choice of a free home inspection or a 1 year home warranty. RSVP to 612-237-6853 or Email bakruse@cbburnet.com.

Guidance for Use of Tax Credit on FHA Loans

Guidance for Use of Tax Credit on FHA Loans

Currently, just 10 state housing finance agencies (HFAs) offer a product that buyers can use to monetize the tax credit for downpayment purposes. Generally, these programs offer tax credit advances with second liens on the home being purchased. The second lien may be "soft" (silent) or require monthly payments but may not result in cash back to the borrower and may not exceed the total amount needed for the downpayment, closing costs and prepaid expenses. The 10 states offering these programs are Colorado, Delaware, Idaho, Kentucky, Missouri, New Jersey, New Mexico, Ohio, Pennsylvania and Tennessee. Other states, including Minnesota, are developing programs so members are encouraged to regularly follow up with their respective HFA.

For all other states where such programs do not exist, the tax credit may not be used to fund the 3.5 percent downpayment required for FHA loans. As always, the 3.5 percent downpayment may be a gift from a family member, employer or nonprofit, charitable organization. FHA-approved nonprofit organizations and FHA-approved lenders may monetize the tax credit for downpayments in excess of 3.5 percent, closing costs and interest rate buy-downs. Mortgage industry leaders have indicated that this type of product may not be immediately available to consumers.

NAR Info on 2009 First-Time Home Buyer Tax Credit

Sources: The Washington Report, National Association of REALTORS®

Weekly Twin Cities Market Report

Weekly Market Activity Report

New listings and pending sales both took a jump upward in the week ending June 6 as the annual post-Memorial Day surge in activity took place. There were 1,226 signed purchase agreements in the Twin Cities for the week, which represents a 33.4 percent increase over the same week last year. The 2,160 new listings were a 4.3 percent decline from a year ago but were a significant bump over the activity seen during the Memorial weekend respite.

The June Housing Affordability Index of 199 is down 20 points over the last two months due to recent rises in mortgage rates and seasonal increases in the region's median sales price. Combine that with a steadily declining Months Supply of Inventory (7.6 months) and falling Supply/Demand Ratio (5 homes per buyer), and it's clear that buying conditions are not quite as friendly as they were a couple of months ago, especially in the lower price ranges.

Regardless, there remains a hefty cadre of properties available for purchase. And with the $8,000 federal tax credit spurring first-time home buyer activity, this summer should be busy.

-MAAR

Traditional sales increase market share in Twin Cities Real Estate Market

Traditional sales increase market share...

Minneapolis, Minnesota (June 10, 2009) – Traditional, non-lender-mediated homes increased their market share in May, according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.

The number of traditional home sales is growing. Only 43.0 percent of the pending sales in May were lender-mediated, compared to 59.4 percent in January.

This decrease in lender-mediated market share brought the overall median price up $12,000 from last month to $165,000 in May. Despite the month-over-month increase, that's still a 19.5 percent drop from May 2008. The median May sales price of traditional homes was $214,000, down 4.3 percent from a year ago. Lender-mediated homes posted a May figure of $122,000, down 20.8 percent from a year ago.

There were 5,183 signed purchase agreements in May, up 17.3 percent from this time last year, marking the 11th consecutive month of year-over-year increases.

"With low mortgage rates and the $8,000 federal tax credit for first-time home buyers we're seeing the recent jump in sales spill over into the traditional market a bit," said Steve Havig, MAAR President.

The number of properties for sale at the end of May was 26,674, down 19.0 percent from this time last year. That amounts to 7.6 months of supply available, down 26.9 percent from this time last year and trending back towards a balanced market of 5 to 6 months of supply. However, there are 9.9 months of traditional supply and only 5.0 months of lender-mediated supply.

"Sales are only up in certain price ranges and on certain property types, so smart pricing and marketing remains extremely important for sellers," said MAAR President-Elect, Brad Fisher.

My Maple Grove Open House - Saturday (11:00-1:00)

For more information on Maple Grove Real Estate: SanctuaryRealtyGroup.Com

Please come see this beautiful Maple Grove home this Saturday. If you are interested in viewing this property but can not make it this weekend please give me a call 612-237-6853. It would be my pleasure to set you up with a private showing.

My Beautiful Maple Grove Open - This Sunday (1:00-3:00)

For more information on Maple Grove Real Estate - SanctuaryRealtyGroup.com

If you are unable to make it this Sunday but would still like to see this home please give me a call 612-237-6853. It would be my pleasure to schedule a private showing.

Amazing Downtown High Rise Condo for Rent

HUD Announces Guidance for Use of Tax Credit on FHA Loans

HUD Announces Guidance for Use of Tax Credit on FHA Loans

Last month at NAR's Housing Summit in Washington, DC, U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan announced a program that would allow borrowers to use the first-time homebuyer tax credit for a downpayment or closing costs on an FHA-insured mortgage.

The details of the program were announced on June 1 in Mortgagee Letter 2009-15. Government entities and instrumentalities of government may provide a second mortgage. Currently, just ten state housing finance agencies offer a product buyers can use that will effectively monetize the tax credit for downpayment purposes. Minnesota is NOT YET on this list, but we are working toward this as quickly as possible. The required 3.5 percent downpayment may also be a gift from a family member, employer, or a nonprofit, charitable organization.

The original guidance permitted lenders and HUD-approved nonprofits and lenders to offer bridge loans via second lien financing or short-term loans. Guidance released today allows lenders to offer the monetized tax credit for downpayments in excess of 3.5 percent, closing costs and interest rate buy downs. Mortgage industry leaders have indicated that this type of product may not be immediately available to consumers. Lenders need time to develop documentation for what will effectively be personal loans to buyers. We will keep you informed.

Full HUD News Release

Sources: U.S. Department of Housing and Urban Development; The Washington Report, National Association of REALTORS®

Weekly Market Activity Report

Weekly Market Activity Report

For the week ending May 23, there were 1,103 pending sales, which was down slightly from the week prior due to the Memorial Day weekend holiday. Despite the low-cal dip, the mark is still 27.2 percent higher than last year at this time. Of the week's sales, 43.2 percent were lender-mediated foreclosures and short sales. In week-by-week, year-over-year comparisons, sales are expected to be higher than last year for the remainder of the year.

Heavy sales and soft growth in new listings equate to no growth in the supply of homes for sale this spring—the time of year that typically shows the largest increases. There are currently 26,453 active listings, lagging 19.6 percent behind this time in 2008.

This week's edition of the MAAR Weekly Market Activity Report features a new Supply-Demand Ratio for June 2009 of 5.04, which means that there will be 5.04 houses per buyer during the month. This is an astounding 33.4 percent drop compared to June 2008. -MAAR

Home Sales Hot Streak Continues Into Spring Heat

Home Sales Hot Streak Continues Into Spring Heat

April home sales in the Twin Cities were even stronger than March's upswing. There were 5,211 pending sales in April, up 23.8 percent from last April. This is the highest showing of signed purchase agreements in April since 2005 and the tenth consecutive month of year-over-year increases.

Of the month's pending sales, 46.0 percent were lender-mediated foreclosures and short sales—down from the last few months as more traditional properties are sold during the spring selling season but up from last year at this time.

The supply of homes for sale continues to experience sluggish growth this spring. There are currently 26,410 homes for sale in the Twin Cities, up 416 units from last month and down 18.4 percent from this time last year. The number of houses for sale for each buyer, as measured by our Supply-Demand Ratio, sits at 5.23 for May—down 28.6 percent from this time last year.

The median sales price for all properties in April of $153,000 is down 25.2 percent from a year ago. While this figure is mathematically correct, it is conceptually flawed. Since a higher share of sales this April were lender-mediated than last April, the number is skewed downward. The median April sales price of traditional homes was $205,000, down 8.5 percent from a year ago. Lender-mediated homes posted an April figure of $120,000, down 21.5 percent from a year ago. - MAAR

Weekly Market Report

Weekly Market Activity Report

1,004. 1,046. 1,083. 1,078. 1,120. 1,185.

Notice a pattern? That's the number of signed purchase agreements each of the last six weeks in the Twin Cities housing market, growing most weeks as the spring buyer market heats up. The 1,185 pending sales during the week of May 9 were a robust 26.6 percent higher than the same week in 2008. Over the last three months, there have been 2,228 more pending sales than the same period last year.

There are some caveats to this good news:

Traditional home sales (excluding foreclosures and short sales) over those last three months are down 17.6 percent from a year ago.
Sales above $190,000 are down 19.2 percent from a year ago.
Sales of new construction homes are down 16.8 percent from a year ago.