Twin Cities Monthly Real Estate Update Video

Twin Cities Weekly Real Estate Market Report

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Once again, the six-day gap between where Labor Day fell in 2008 and where it fell this year is causing our year-over-year weekly numbers to look weird. For the week ending September 12, you'll see a steep drop-off in new listings and pending sales, but there's no such dip last year.

New listings for the week ending September 12 were 1,624, a 12.9 percent drop from this period last year. Pending sales agreements also dropped precipitously to 840 from 1,070 a week ago, 7.3 percent higher than this week last year.

Next week's figures should begin to provide more relevant year-over-year comparisons. As the final days of the tax credit tick down (72 days and shrinking), we'll be watching market activity with heavy interest. Stay tuned.

MAAR’s August 2009 Twin Cities Housing Stats

MAAR’s August 2009 Twin Cities Housing Stats - Prices increase as sales remain strong
Home prices continue to show signs of strengthening in the Twin Cities housing market. The median sales price for the 13-county metro region in August was $175,000, down 12.5 percent from a year ago but up once again from July. From March 2009 through August 2009, the median sales price has grown from $154,125 to $175,000. Prices were flat during the same period last year.

Prices are stabilizing due to strong buyer demand—especially in the lower price ranges—buoyed by low mortgage rates and the federal tax credit for first-time home buyers. For the 14th consecutive month, there were more pending sales than there were the prior year. August saw 4,897 signed purchase agreements, up 11.0 percent from August 2008.

"The tax credit, low rates and affordability really pushed buyers out there this summer," said Steve Havig, MAAR President.

The growth in sales is no longer confined to lender-mediated homes as it had been earlier this year. Traditional home sales in August were up 4.2 percent from a year ago, and traditional home sales below $150,000 were up 40.8 percent. Homes in the upper price ranges are still experiencing slow conditions.

Good news for sellers: the percent of original list price received at sale continues to improve—the August mark of 94.1 is 1.5 percent higher than last August—and total days on market until sale continues to drop.

The median sales price of traditional homes in June was $209,000, down 8.2 percent from a year ago. Lender-mediated homes posted a May figure of $125,000, down 10.7 percent from a year ago.

"With the tax credit expiring in November, closed sales should stay robust for at least the next two months," said MAAR President-Elect, Brad Fisher. "Time will tell what the market looks like after that, but there will be less inventory."

AUGUST 2009 TOPLINE

1) For the 14th consecutive month, there were more pending sales than there were the prior year.

2) Prices are stabilizing due to strong buyer demand brought on by low mortgage rates and the federal tax credit for first-time home buyers.

3) With the tax credit expiring in November, closed sales are expected to be robust for at least the next two months.

4) Time will tell what the market looks like after that, but there will be less inventory left.

AUGUST 2009 STATISTICS OVERVIEW

1) There were 4,897 signed purchase agreements in August, up 11.0 percent from this time last year.

2) 40.1 percent of pending sales in August were lender-mediated.

3) The overall median sales price for all properties in August was $175,000, down 12.5 percent from a year ago but up from July.

4) From March 2009 through August 2009 the median sales price has grown from $154,125 to $175,000. Prices were flat during the same period last year.

5) The median sales price of traditional homes in August was $209,000, down 8.2 percent from a year ago.

6) Lender-mediated homes posted an August figure of $125,000, down 10.7 percent from a year ago.

7) The percent of original list price received at sale continues to improve—the August mark of 94.1 is 1.5 percent higher than last August.

According to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.

Twin Cities Real Estate Video Update

Weekly Real Estate Market Report / Twin Cities

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For the first time in 9 months, the number of weekly new listings coming on the market was actually higher than it was a year ago. The 1,641 new homes on the market during the week ending August 29 represent a 3.3 percent increase from a year ago. The slight year-over-year uptick is due in part to growth in the number of new, traditional, non-lender-mediated listings.

For the most recent reporting week, the number of brand new traditional listings (excluding re-lists that have already been on the market sometime in the last 12 months) has grown 20.3 percent compared to a year ago. Home sellers are becoming more active, likely in response to the increase in home sales seen throughout the year.

And if you look at three of our newly updated metrics, it becomes obvious why more sellers are jumping in:

Days on Market Until Sale – 133 days, a drop of 7.1 percent from a year ago.
Percent of Original List Price Received at Sale – 94.1, up 1.5 percent from a year ago.
Supply-Demand Ratio – 5.46 homes per buyer in September, down 30.3 percent from a year ago.

Weekly Twin Cities Market Report / Twin Cities

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Weekly Market Activity Report

In 2006, the inventory of homes for sale was plentiful and buyers were in short supply. Regular followers of our weekly report will have noticed that a shift has been in the works for several months. The week-to-week patterns of pending sales and inventory resemble market patterns from last year, but pending sales have consistently outperformed last year's numbers. In fact, the most recent week's 1,012 signed purchase agreements represents a 23.7 percent increase over last year and is the 59th week of the last 60 with a year-over-year increase.

Active listings are dwindling, down 21.2 percent from last year. Inventory supply has dropped from 10.5 months to 7.2 months in the last year, and it has dropped quickly in the lower price ranges where sales activity is the strongest. Shift, change, adjust, correct, stabilize—take your pick of these words when describing today's housing market, and you'll be right.