As fall turns into winter—and winter turns dark and cold—activity in the Twin Cities housing market has entered its annual hibernation. On a weekly basis, new listings, total inventory and sales are all declining as consumers batten down the hatches and prepare for the holidays. Relative to this time last year, however, activity is stronger. For the week ending December 6, there were 597 signed purchase agreements (pending sales), which is up 27.6 percent over the same week last year. Roughly half of these sales—54.7 percent—were lender-mediated foreclosures or short sales.
On the supply side, new listings were relatively flat, up only 0.7 percent for the same time period comparison. The total supply of homes for sale currently sits at 27,035, down 8.2 percent compared to this time last year. Expect the decline in overall supply to continue into January. At the same time, expect the lender-mediated market share of that supply to increase.
Monday, December 15, 2008
Tuesday, November 25, 2008
Most homes sales are lender mediated (foreclosures)
Weekly Market Activity Report
For 19 weeks out of the past 20, pending sales have been higher than during the equivalent week in 2007. There were 649 pending sales for the week ending November 15, up a healthy 19.1 percent from the same week last year. Of these newly signed purchase agreements, 53.5 percent were for lender-mediated foreclosure or short sale properties and 41.9 percent were listed at $150,000 or below. Over the last three months, there have been more than 25 percent more pending sales than during the same time in 2007. A healthy portion of these sales have been in the lower price ranges.
On the supply side, the inventory of homes for sale currently sits at 29,365, which is 9.0 percent lower than this time last year. New listings for the most recent reporting week were 9.0 percent lower than a year ago, and only 41.7 of new listings were lender-mediated.
The fact that a much higher proportion of sales are lender-mediated (53.5 percent) compared to new listings (41.7 percent) is an indication that foreclosures and short sales are not languishing on the open market. Although we still have a ways to go, this is a hopeful sign. The sooner the lender-mediated inventory is absorbed, the sooner our market can return to a traditional recovery process.
For 19 weeks out of the past 20, pending sales have been higher than during the equivalent week in 2007. There were 649 pending sales for the week ending November 15, up a healthy 19.1 percent from the same week last year. Of these newly signed purchase agreements, 53.5 percent were for lender-mediated foreclosure or short sale properties and 41.9 percent were listed at $150,000 or below. Over the last three months, there have been more than 25 percent more pending sales than during the same time in 2007. A healthy portion of these sales have been in the lower price ranges.
On the supply side, the inventory of homes for sale currently sits at 29,365, which is 9.0 percent lower than this time last year. New listings for the most recent reporting week were 9.0 percent lower than a year ago, and only 41.7 of new listings were lender-mediated.
The fact that a much higher proportion of sales are lender-mediated (53.5 percent) compared to new listings (41.7 percent) is an indication that foreclosures and short sales are not languishing on the open market. Although we still have a ways to go, this is a hopeful sign. The sooner the lender-mediated inventory is absorbed, the sooner our market can return to a traditional recovery process.
Monday, November 17, 2008
Foreclosures are where its at.
Weekly Market Activity Report
As the fall temperature persists at near freezing levels, home sales activity remains stubbornly higher than it was a year ago, despite weakened consumer confidence and a sluggish economy. Pending sales for the week ending November 8 were 16.9 percent higher than the same week in 2007, and over the last three months have been a robust 26.6 percent higher. Lender-mediated foreclosures and short sales in the lower price ranges are driving the swing upwards; 54.4 percent of the most recent reporting week's pending sales were lender-mediated and 43.2 percent were priced under $150,000.
Supply remains down from last year but appears to have reached a plateau of sorts. We have had roughly 9 percent fewer total homes for sale than at the same point last year for the last 5 consecutive weeks. New supply coming onto the market continues to slow its velocity and will likely remain commensurate in pace with fourth-quarter 2007. A total of 41.1 percent of new listings over the past week were lender-mediated.
As the fall temperature persists at near freezing levels, home sales activity remains stubbornly higher than it was a year ago, despite weakened consumer confidence and a sluggish economy. Pending sales for the week ending November 8 were 16.9 percent higher than the same week in 2007, and over the last three months have been a robust 26.6 percent higher. Lender-mediated foreclosures and short sales in the lower price ranges are driving the swing upwards; 54.4 percent of the most recent reporting week's pending sales were lender-mediated and 43.2 percent were priced under $150,000.
Supply remains down from last year but appears to have reached a plateau of sorts. We have had roughly 9 percent fewer total homes for sale than at the same point last year for the last 5 consecutive weeks. New supply coming onto the market continues to slow its velocity and will likely remain commensurate in pace with fourth-quarter 2007. A total of 41.1 percent of new listings over the past week were lender-mediated.
Tuesday, November 11, 2008
Ignore the news, our market is different and its looking up.
Weekly Market Activity Report
There is further evidence that home sellers (both traditional and lender-mediated) in the Twin Cities housing market are becoming more successful in attracting buyer interest by pricing their properties attractively from the get-go. This is having the bonus effect of limiting further extension of market time and reducing the number of price concessions. For instance, the Average Days on Market Until Sale in October was 141, down from last year by 0.8 percent. This is the first year-over-year decline in market time since we began tracking the figures in 2006.
Similarly, the Percent of Original List Price Received at Sale in October sat at 91.3 percent. While still down from last year, it is only down 1.9 percent, compared to the more robust drops of 4 percent or higher seen during most of 2008. In other words, the market is still tilted in the buyer's favor, but sellers and banks are responding with more realistic prices at the time of first listing.
For the week ending November 1, there were 21 percent fewer new listings than there were at this time last year, and 1.4 percent fewer pending sales. This is the first downward year-over-year movement in pending sales since June.
The Housing Affordability Index has increased slightly in November to 161, while November's Months Supply of Inventory shows a drop to 9 months.
There is further evidence that home sellers (both traditional and lender-mediated) in the Twin Cities housing market are becoming more successful in attracting buyer interest by pricing their properties attractively from the get-go. This is having the bonus effect of limiting further extension of market time and reducing the number of price concessions. For instance, the Average Days on Market Until Sale in October was 141, down from last year by 0.8 percent. This is the first year-over-year decline in market time since we began tracking the figures in 2006.
Similarly, the Percent of Original List Price Received at Sale in October sat at 91.3 percent. While still down from last year, it is only down 1.9 percent, compared to the more robust drops of 4 percent or higher seen during most of 2008. In other words, the market is still tilted in the buyer's favor, but sellers and banks are responding with more realistic prices at the time of first listing.
For the week ending November 1, there were 21 percent fewer new listings than there were at this time last year, and 1.4 percent fewer pending sales. This is the first downward year-over-year movement in pending sales since June.
The Housing Affordability Index has increased slightly in November to 161, while November's Months Supply of Inventory shows a drop to 9 months.
Tuesday, November 4, 2008
Housing market is slowly getting better in MN
Weekly Market Activity Report
The big letdown in home sales that many of us have expected following the recent drops in consumer confidence has yet to materialize in the Twin Cities housing market. For the week ending October 25, there were 602 pending sales, up 17.1 percent over the same week last year. Despite the uncertainties swirling in the general economy, home sales continue to post year-over-year increases every week. Lender-mediated sales continue to grow market share, as 51.1 percent of pending sales for the most recent reporting week were foreclosures or short sales, which should mean continued declines in median sales prices.
New listings for the same week were down 2.0 percent from the same week in 2007, and the total number of active homes for sale is down by 9.2 percent year-over-year.
This week's edition of the MAAR Weekly Market Activity Report features an updated Supply-Demand Ratio for November of 10.72, which means that there will be approximately 10.72 houses for every buyer during the month of November. This is down 13.9 percent from November 2007's figure of 12.45.
The big letdown in home sales that many of us have expected following the recent drops in consumer confidence has yet to materialize in the Twin Cities housing market. For the week ending October 25, there were 602 pending sales, up 17.1 percent over the same week last year. Despite the uncertainties swirling in the general economy, home sales continue to post year-over-year increases every week. Lender-mediated sales continue to grow market share, as 51.1 percent of pending sales for the most recent reporting week were foreclosures or short sales, which should mean continued declines in median sales prices.
New listings for the same week were down 2.0 percent from the same week in 2007, and the total number of active homes for sale is down by 9.2 percent year-over-year.
This week's edition of the MAAR Weekly Market Activity Report features an updated Supply-Demand Ratio for November of 10.72, which means that there will be approximately 10.72 houses for every buyer during the month of November. This is down 13.9 percent from November 2007's figure of 12.45.
Monday, October 27, 2008
Stock Market down, how about buying a bank owned home?
Weekly Market Activity Report
Home sales in the Twin Cities housing market continue to post healthy increases over last year, though the upward movement isn't as powerful as it was during September. For the week ending October 18, there were 618 signed purchase agreements (pending sales)—an increase of 9.6 percent over the same week last year and the 16th consecutive week of year-over-year upward movement. Foreclosures and short sales continue to comprise a sizable chunk of the market.
New listings for the same time period comparison were 18.1 percent lower, which represents the 30th week of the last 33 to have downward movement in new listing supply. The total inventory of homes for sale sits at 30,343, which is about 3,000 less than at this same time in 2007. Inventory should continue to fall through the remainder of the year but won't fall as far as previous years given the higher number of foreclosures and short sales, which tend to stay on the market irregardless of snow depth and subzero temperatures.
Home sales in the Twin Cities housing market continue to post healthy increases over last year, though the upward movement isn't as powerful as it was during September. For the week ending October 18, there were 618 signed purchase agreements (pending sales)—an increase of 9.6 percent over the same week last year and the 16th consecutive week of year-over-year upward movement. Foreclosures and short sales continue to comprise a sizable chunk of the market.
New listings for the same time period comparison were 18.1 percent lower, which represents the 30th week of the last 33 to have downward movement in new listing supply. The total inventory of homes for sale sits at 30,343, which is about 3,000 less than at this same time in 2007. Inventory should continue to fall through the remainder of the year but won't fall as far as previous years given the higher number of foreclosures and short sales, which tend to stay on the market irregardless of snow depth and subzero temperatures.
Tuesday, October 21, 2008
Homes sales are still up, inventory is down, The housing market is looking good.
Home sales continued their recent upward streak for the week ending October 11, with pending sales posting a 21.1 percent increase over the same week in 2007. While this doesn't keep pace with the extreme increases seen throughout September, it remains a positive indicator of recent buyer demand. Almost half of the properties bought during the week in question were lender-mediated foreclosures or short sales—47.3 percent, to be exact.
On the supply side, things look decidedly different. New listings declined by 10.0 percent for the same time period comparison and are down 11.5 percent over the last three months. The total supply of active homes for sale sits at 30,495, which is 9.4 percent below this time last year. Inventory should decline through the remainder of the year as traditional home sellers take their homes off the market with greater frequency during the fall and winter months, waiting for the inherent optimism and renewed spirit of spring's thaw.
On the supply side, things look decidedly different. New listings declined by 10.0 percent for the same time period comparison and are down 11.5 percent over the last three months. The total supply of active homes for sale sits at 30,495, which is 9.4 percent below this time last year. Inventory should decline through the remainder of the year as traditional home sellers take their homes off the market with greater frequency during the fall and winter months, waiting for the inherent optimism and renewed spirit of spring's thaw.
Monday, October 20, 2008
New MN Law for Carbon Monoxide Alarms
It is quite possible that MN Stat. 299.51 snuck up on you and your clients like carbon monoxide - silently. Although this new state mandate had received some attention during the legislative session, word of the new law (effective August 1, 2008 for existing single-family homes) and its application has not spread throughout the industry.
What is it? The new carbon monoxide (CO) alarm law requires that "every single-family dwelling and every dwelling unit in a multifamily dwelling" have "an approved and operational carbon monoxide alarm installed within ten feet of each room lawfully used for sleeping purposes." (See MN Stat. 299.51) This law was effective as of August 1, 2007 for newly constructed homes, and just became effective August 1, 2008 for all existing single-family dwelling units. It becomes effective in August 1, 2009 for existing multifamily dwelling units. The alarms must be an approved device (conforming to UL2034 standards), and may be hardwired, plugged in, or battery-powered (if attached to the wall).
Time to go shopping at your local Home Depot, Ace Hardware, Menards or any other store that carries house hold items.
What is it? The new carbon monoxide (CO) alarm law requires that "every single-family dwelling and every dwelling unit in a multifamily dwelling" have "an approved and operational carbon monoxide alarm installed within ten feet of each room lawfully used for sleeping purposes." (See MN Stat. 299.51) This law was effective as of August 1, 2007 for newly constructed homes, and just became effective August 1, 2008 for all existing single-family dwelling units. It becomes effective in August 1, 2009 for existing multifamily dwelling units. The alarms must be an approved device (conforming to UL2034 standards), and may be hardwired, plugged in, or battery-powered (if attached to the wall).
Time to go shopping at your local Home Depot, Ace Hardware, Menards or any other store that carries house hold items.
Wednesday, October 15, 2008
The market has slowed down again after a 4 week run.
After spending weeks hypothesizing what role the sunsetting FHA seller-funded downpayment assistance was having in stimulating the recent jump in home sales, we may have our first indication this week. For the week ending October 4—the first week we've measured in which the program was unavailable to prospective Twin Cities home buyers—pending sales were ahead of the same week last year by only 3.5 percent. While this is still an upward annual trend, it is about a 15 percent decline in buyer activity as compared to the activity of each of the previous four weeks.
Now that the FHA program is gone, time will tell if home sales will continue to surpass 2006 levels, as seen over the past several weeks. While one week of a relative downturn is too small a sample size to be predictive of the future, our changing financial climate bears close scrutiny in the weeks ahead.
Listing supply continues to draw down, as new listings declined by 12.0 percent for the same time period comparison and the total number of homes for sale is 9.1 percent lower than it was one year ago.
Now that the FHA program is gone, time will tell if home sales will continue to surpass 2006 levels, as seen over the past several weeks. While one week of a relative downturn is too small a sample size to be predictive of the future, our changing financial climate bears close scrutiny in the weeks ahead.
Listing supply continues to draw down, as new listings declined by 12.0 percent for the same time period comparison and the total number of homes for sale is 9.1 percent lower than it was one year ago.
Sunday, October 5, 2008
Monday, September 15, 2008
Don't forget about the $7,500 federal tax credit for first-time homebuyers
Weekly Market Activity Report
Like The Godfather: Part II, the Twin Cities housing market showed a surprisingly strong sequel to last week's huge upswing in pending sales. For the week ending September 6, there were 749 purchase agreements written—a rise of 49.8 percent from the same week in 2007. This comes on the heels of last week's then-unthinkably large increase of 51.3 percent.
There are factors at work that are exacerbating the appearance of this rebound and slightly tempering this good news. First, the sales slowdown in August and September of last year was historically extreme; current activity seems extraterrestially high, compared to 2007, but is actually only slightly above the pace of 2006. In addition, there is likely a short-term increase in sales activity as home buyers act now to take advantage of sunsetting seller-funded downpayment assistance on FHA mortgages. This program is currently the only zero-down loan option still available and is disappearing as of October 1, subject to a congressional rescue.
Other factors working to boost buyer activity include the newly authorized $7,500 federal tax credit for first-time homebuyers, home prices too good to pass on and downward pressure on interest rates.
Elsewhere in the market, the supply of homes for sale continues to shrink. There are currently 9.0 percent fewer homes on the market than there were a year ago. And we are almost dead even with the number of homes on the market at this time in 2006.
Like The Godfather: Part II, the Twin Cities housing market showed a surprisingly strong sequel to last week's huge upswing in pending sales. For the week ending September 6, there were 749 purchase agreements written—a rise of 49.8 percent from the same week in 2007. This comes on the heels of last week's then-unthinkably large increase of 51.3 percent.
There are factors at work that are exacerbating the appearance of this rebound and slightly tempering this good news. First, the sales slowdown in August and September of last year was historically extreme; current activity seems extraterrestially high, compared to 2007, but is actually only slightly above the pace of 2006. In addition, there is likely a short-term increase in sales activity as home buyers act now to take advantage of sunsetting seller-funded downpayment assistance on FHA mortgages. This program is currently the only zero-down loan option still available and is disappearing as of October 1, subject to a congressional rescue.
Other factors working to boost buyer activity include the newly authorized $7,500 federal tax credit for first-time homebuyers, home prices too good to pass on and downward pressure on interest rates.
Elsewhere in the market, the supply of homes for sale continues to shrink. There are currently 9.0 percent fewer homes on the market than there were a year ago. And we are almost dead even with the number of homes on the market at this time in 2006.
Tuesday, September 9, 2008
Housing market is looking good.
Weekly Market Activity Report
Like Adam West as Batman, the market for home sales in the Twin Cities went POW! during the week ending August 30. For the week, there were 965 purchase agreements signed—a whopping increase of 51.3 percent from the same week last year. That's the highest year-over-year increase in pending sales since we began tracking that figure on a weekly basis in 2004. Home-buying activity is particularly heavy relative to last year due in all likelihood to a) the historically sluggish showing in August of last year as the credit crunch took hold, b) a bevy of buyers taking advantage of the final days of FHA's seller-funded downpayment assistance program, which sunsets on October 1 of this year and (c) new home buyers getting off the fence and taking advantage of the new home buyer tax credit of up to $7,500.
This week's edition of the MAAR Weekly Market Activity Report features updated figures for several key metrics. Days on Market Until Sale dipped slightly to 143 but remains up from last year by 5.8 percent. The Percent of Original List Price Received at Sale increased slightly to 92.7 but remains down from the healthier levels of the past several years. The Housing Affordability Index increased to 151, thanks to falling prices and interest rates.
The Months Supply of Inventory fell to 9.9 months. This means it will take the current crop of properties for sale approximately 9.9 months to completely sell through, given current sales rates. This is dead-even with this time last year, another indication that the market isn't continuing to shift in the buyer's favor anymore for the time being. A balanced market is thought to have a 5- to 6-month supply rate.
Like Adam West as Batman, the market for home sales in the Twin Cities went POW! during the week ending August 30. For the week, there were 965 purchase agreements signed—a whopping increase of 51.3 percent from the same week last year. That's the highest year-over-year increase in pending sales since we began tracking that figure on a weekly basis in 2004. Home-buying activity is particularly heavy relative to last year due in all likelihood to a) the historically sluggish showing in August of last year as the credit crunch took hold, b) a bevy of buyers taking advantage of the final days of FHA's seller-funded downpayment assistance program, which sunsets on October 1 of this year and (c) new home buyers getting off the fence and taking advantage of the new home buyer tax credit of up to $7,500.
This week's edition of the MAAR Weekly Market Activity Report features updated figures for several key metrics. Days on Market Until Sale dipped slightly to 143 but remains up from last year by 5.8 percent. The Percent of Original List Price Received at Sale increased slightly to 92.7 but remains down from the healthier levels of the past several years. The Housing Affordability Index increased to 151, thanks to falling prices and interest rates.
The Months Supply of Inventory fell to 9.9 months. This means it will take the current crop of properties for sale approximately 9.9 months to completely sell through, given current sales rates. This is dead-even with this time last year, another indication that the market isn't continuing to shift in the buyer's favor anymore for the time being. A balanced market is thought to have a 5- to 6-month supply rate.
Tuesday, August 26, 2008
Market is looking good.
Weekly Market Activity Report
If you're looking for some insight into just how sluggish the second half of 2007's home sales were, look no further then the year-over-year comparisons with the sales from this year. For the week ending August 16, 2008, there were a whopping 33.0 percent more pending sales than the same week last year—an increase of more than 200 units. This extremely strong showing is due to a combination of legitimately robust current demand and the uncharacteristically steep downward dive sales took last year after the credit markets began to constrict in August 2007. This week's figures are more in line with the equivalent (pre-credit crunch) time period in 2006—just 2.5 percent off that pace.
As for housing supply, the number of new listings on the market receded by 18.4 percent for the same time period comparison, and the total number of active properties for sale is currently 7.1 percent lower than at the same point last year.
If you're looking for some insight into just how sluggish the second half of 2007's home sales were, look no further then the year-over-year comparisons with the sales from this year. For the week ending August 16, 2008, there were a whopping 33.0 percent more pending sales than the same week last year—an increase of more than 200 units. This extremely strong showing is due to a combination of legitimately robust current demand and the uncharacteristically steep downward dive sales took last year after the credit markets began to constrict in August 2007. This week's figures are more in line with the equivalent (pre-credit crunch) time period in 2006—just 2.5 percent off that pace.
As for housing supply, the number of new listings on the market receded by 18.4 percent for the same time period comparison, and the total number of active properties for sale is currently 7.1 percent lower than at the same point last year.
Tuesday, August 19, 2008
Real Estate Market report.
Weekly Market Activity Report
Zoinks! Pending sales for the week ending August 9 were a startling 21.0 percent higher than one year ago, posting 900 sales as compared to 744 a year ago. While one week of such robust increase doesn't justify the opening of stored champagne bottles, it is another welcome sign of reviving buyer demand. While a highly productive number in its own right, the year-over-year increase is somewhat amplified by just how slow August of last year was, as that is the specific month in which tightening lending standards began to take root.
New listings declined by 11.3 percent for the same time period comparison, and the total number of active properties for sale is currently 6.4 percent lower than it was one year ago. With foreclosure and short sale activity increasing, the declining supply underscores just how many traditional sellers are waiting this market out by not placing their homes up for sale.
Zoinks! Pending sales for the week ending August 9 were a startling 21.0 percent higher than one year ago, posting 900 sales as compared to 744 a year ago. While one week of such robust increase doesn't justify the opening of stored champagne bottles, it is another welcome sign of reviving buyer demand. While a highly productive number in its own right, the year-over-year increase is somewhat amplified by just how slow August of last year was, as that is the specific month in which tightening lending standards began to take root.
New listings declined by 11.3 percent for the same time period comparison, and the total number of active properties for sale is currently 6.4 percent lower than it was one year ago. With foreclosure and short sale activity increasing, the declining supply underscores just how many traditional sellers are waiting this market out by not placing their homes up for sale.
Tuesday, August 12, 2008
The housing market is slowly getting better.
Weekly Market Activity Report
For the fifth consecutive week and ninth of the last twelve, there were more purchase agreements written on homes than one year previous.
For the week ending August 2, there were 820 pending sales—an increase of 2.2 percent from the same week in 2007. Over the last three months, pending sales have held relatively steady, posting an increase of 0.6 percent from the same period last year. With sales tantalizing the marketplace with slight upward jiggering over the past several weeks, some might want to predict that we've reached bottom. While the news is encouraging, it's a bit premature to stake that claim. Meanwhile, housing supply is clearly in decline. New listings from the most recently reported week were a stirring 19.8 percent lower than last year and were down 12.8 percent over the last three months.
This week's edition of the MAAR Weekly Market Activity Report features updated figures for several key metrics. Days on Market Until Sale in July fell slightly to 146 but remains up 13.3 percent from July 2007. Percent of Original List Price Received at Sale decreased to 92.6 percent, also down from last year. Months Supply of Inventory is up 8.6 percent from last year at 10.5. And our Housing Affordability Index (HAI) fell 4 points from last month to 144 due to another increase in interest rates and seasonal increases in home prices. Despite the drop, the HAI remains much improved from 2006 and 2007.
For the fifth consecutive week and ninth of the last twelve, there were more purchase agreements written on homes than one year previous.
For the week ending August 2, there were 820 pending sales—an increase of 2.2 percent from the same week in 2007. Over the last three months, pending sales have held relatively steady, posting an increase of 0.6 percent from the same period last year. With sales tantalizing the marketplace with slight upward jiggering over the past several weeks, some might want to predict that we've reached bottom. While the news is encouraging, it's a bit premature to stake that claim. Meanwhile, housing supply is clearly in decline. New listings from the most recently reported week were a stirring 19.8 percent lower than last year and were down 12.8 percent over the last three months.
This week's edition of the MAAR Weekly Market Activity Report features updated figures for several key metrics. Days on Market Until Sale in July fell slightly to 146 but remains up 13.3 percent from July 2007. Percent of Original List Price Received at Sale decreased to 92.6 percent, also down from last year. Months Supply of Inventory is up 8.6 percent from last year at 10.5. And our Housing Affordability Index (HAI) fell 4 points from last month to 144 due to another increase in interest rates and seasonal increases in home prices. Despite the drop, the HAI remains much improved from 2006 and 2007.
Tuesday, July 29, 2008
Wqeekly Market Rerport for the week of July 28th, 2008
Weekly Market Activity Report
In the Twin Cities housing market, sales are flat like a New York pizza and supply is down like grandma's comforter. Fortunately for us, the data confirms our kitschy similes. Pending sales for the week ending July 19 are ahead of the same week last year by 3.8 percent, while new listings fell by 13.0 percent for the same time period—positive signs of a market in transition.
The total number of active listings for sale currently sits at 33,410, (comfortably) down 1,722 units—or 4.9 percent—from this time last year. Since the number of new homes coming on the market remains in decline and sales appear to have hit bottom, we can expect total inventory to remain lower than last year for some time to come.
In the Twin Cities housing market, sales are flat like a New York pizza and supply is down like grandma's comforter. Fortunately for us, the data confirms our kitschy similes. Pending sales for the week ending July 19 are ahead of the same week last year by 3.8 percent, while new listings fell by 13.0 percent for the same time period—positive signs of a market in transition.
The total number of active listings for sale currently sits at 33,410, (comfortably) down 1,722 units—or 4.9 percent—from this time last year. Since the number of new homes coming on the market remains in decline and sales appear to have hit bottom, we can expect total inventory to remain lower than last year for some time to come.
Tuesday, July 22, 2008
Weekly market Report for the week of July 21st, 2008
Weekly Market Activity Report
Housing supply in the Twin Cities continues its descent. For the week ending July 12, there were 11.5 percent fewer new listings on the market than there were one year ago. Over the last three months, there have been roughly 4,000 fewer homes on the market than there were during the same period in 2007. The total number of properties for sale currently sits at 33,390—down 4.7 percent from this time last year.
The sales picture is slightly different, as activity has flattened after two years of downward movement. We are showing a slight 1.8 percent increase in pending sales from the same week last year. Over the last three months, there have been roughly 300fewer pending sales—a decline of 2.7 percent.
The new construction market has achieved an important step towards its eventual recovery. The Months Supply of Inventory for new construction properties is now less than at this time one year ago—dropping slightly from 11.0 months in July 2007 to 10.8 today. This figure has been increasing steadily for several straight years. A drastic decrease in new construction inventory is the reason for the decline.
Condominium prices continue to indicate healthier dynamics than the other property types, with both average sales price and price per square foot up slightly. This submarket seems to have peaked and flattened earlier than others, and also has far fewer foreclosures and short sales affecting overall price data.
The entire market continues to shift downward to the lower price ranges, in both supply and demand—an indication of the growing prevalence of lender-mediated foreclosures and short sales in the Twin Cities.
Housing supply in the Twin Cities continues its descent. For the week ending July 12, there were 11.5 percent fewer new listings on the market than there were one year ago. Over the last three months, there have been roughly 4,000 fewer homes on the market than there were during the same period in 2007. The total number of properties for sale currently sits at 33,390—down 4.7 percent from this time last year.
The sales picture is slightly different, as activity has flattened after two years of downward movement. We are showing a slight 1.8 percent increase in pending sales from the same week last year. Over the last three months, there have been roughly 300fewer pending sales—a decline of 2.7 percent.
The new construction market has achieved an important step towards its eventual recovery. The Months Supply of Inventory for new construction properties is now less than at this time one year ago—dropping slightly from 11.0 months in July 2007 to 10.8 today. This figure has been increasing steadily for several straight years. A drastic decrease in new construction inventory is the reason for the decline.
Condominium prices continue to indicate healthier dynamics than the other property types, with both average sales price and price per square foot up slightly. This submarket seems to have peaked and flattened earlier than others, and also has far fewer foreclosures and short sales affecting overall price data.
The entire market continues to shift downward to the lower price ranges, in both supply and demand—an indication of the growing prevalence of lender-mediated foreclosures and short sales in the Twin Cities.
Monday, June 16, 2008
Market Update for the week of June 16th, 2008
Bringing our market back to balance involves a two-step process: supply needs to draw down, demand needs to bounce back up. It's as simple as that. So far, 2008 is proving to be the year that we can confidently check the first item off this list, as the number of homes for sale continues to dwindle relative to one year ago. There are currently 33,219 homes for sale in the Twin Cities region, down a hearty 4.9 percent from one year ago, a year-over-year figure which should continue to drop in the months ahead. New listings for the week ending June 7 were down 13.9 percent from a year ago, while pending sales declined by a smaller 5.3 percent for the same time period comparison.
All in all, we're halfway there: supply is coming down, but demand is only flattening, not coming back up just yet. Regardless, the signs are encouraging.
This week's edition of the MAAR Weekly Market Activity Report features updated figures for our Housing Affordability Index (HAI) and Months Supply of Inventory. The HAI dropped slightly to 149 due to another increase in interest rates, while inventory increased to 10.4 months of supply. This means that it will take 10.4 months to sell through our current inventory, should buyer activity remain constant and no homes new to the market are listed for sale.
All in all, we're halfway there: supply is coming down, but demand is only flattening, not coming back up just yet. Regardless, the signs are encouraging.
This week's edition of the MAAR Weekly Market Activity Report features updated figures for our Housing Affordability Index (HAI) and Months Supply of Inventory. The HAI dropped slightly to 149 due to another increase in interest rates, while inventory increased to 10.4 months of supply. This means that it will take 10.4 months to sell through our current inventory, should buyer activity remain constant and no homes new to the market are listed for sale.
Monday, May 12, 2008
Market Report for the week of May 11th, 2008
Weekly Market Activity Report
In Minnesota, warmer weather typically equates to listing increases. But compared to previous years, the run-up to the 2008 summer selling season in the Twin Cities housing market has been meek. The number of new listings for the week ending May 3 was 16.6 percent behind the same time last year—the ninth consecutive week of decline relative to a year ago. Buyer activity is also slower. Over the last three months, pending sales are hovering around a 16 percent year-over-year decline.
This week's edition of the MAAR Weekly Market Activity Report features updated figures for several important metrics. As the spring season begins, the Average Days on Market Until Sale decreased to 154 while the Percent of Original List Price Received at Sale increased slightly to 91.7. The Housing Affordability Index decreased to 151, due to slight seasonal increases in sales price and interest rates. Finally, the Months Supply of Inventory increased to 10.2 months; a 5- to 6-month supply rate is considered indicative of a balanced market.
In Minnesota, warmer weather typically equates to listing increases. But compared to previous years, the run-up to the 2008 summer selling season in the Twin Cities housing market has been meek. The number of new listings for the week ending May 3 was 16.6 percent behind the same time last year—the ninth consecutive week of decline relative to a year ago. Buyer activity is also slower. Over the last three months, pending sales are hovering around a 16 percent year-over-year decline.
This week's edition of the MAAR Weekly Market Activity Report features updated figures for several important metrics. As the spring season begins, the Average Days on Market Until Sale decreased to 154 while the Percent of Original List Price Received at Sale increased slightly to 91.7. The Housing Affordability Index decreased to 151, due to slight seasonal increases in sales price and interest rates. Finally, the Months Supply of Inventory increased to 10.2 months; a 5- to 6-month supply rate is considered indicative of a balanced market.
Wednesday, May 7, 2008
Market Report for the week of May 5th, 2008
Weekly Market Activity Report
Ring the bell, sound the alarms, shout from the mountaintops: the number of homes for sale in the Twin Cities region as of today is less than the number for sale at this point last year, a new benchmark which marks an encouraging sign that the market is in an early stage of recovery.
This is the first time since MAAR began tracking inventory figures that we have been able to show a year-over-year decline in listing supply. There are currently 32,448 residential properties for sale, a decline of 134 units from this time in 2007. With sellers still holding back on putting their homes on the market (new listings are down 11.4 percent from last year over the last three months), this downward year-over-year trend in inventory should continue into the summer.
This week's edition of the MAAR Weekly Market Activity Report features a new figure for our Supply-Demand Ratio of 7.53, which means there are approximately 7.53 homes on the market for each buyer in May— up 12.9 percent from May 2007 when the figure was 6.67.
Ring the bell, sound the alarms, shout from the mountaintops: the number of homes for sale in the Twin Cities region as of today is less than the number for sale at this point last year, a new benchmark which marks an encouraging sign that the market is in an early stage of recovery.
This is the first time since MAAR began tracking inventory figures that we have been able to show a year-over-year decline in listing supply. There are currently 32,448 residential properties for sale, a decline of 134 units from this time in 2007. With sellers still holding back on putting their homes on the market (new listings are down 11.4 percent from last year over the last three months), this downward year-over-year trend in inventory should continue into the summer.
This week's edition of the MAAR Weekly Market Activity Report features a new figure for our Supply-Demand Ratio of 7.53, which means there are approximately 7.53 homes on the market for each buyer in May— up 12.9 percent from May 2007 when the figure was 6.67.
Tuesday, April 22, 2008
Market Report for the week of April 21st, 2008
Weekly Market Activity Report
The signs are early and nascent, but there are some promising early indicators that the Twin Cities housing market is beginning to correct and pull back from its two year-beeline in the buyer's favor. While affordability, interest rates and overall supply are still attractive, home sellers are cutting back on new listings substantially in 2008.
For the week ending April 12, there were 2,156 new listings, down a full 20.1 percent from the same week last year. That's the fifth week in the last six that we've seen double-digit percentage drops from 2007 activity. Newly signed purchase agreements (pending sales) are still behind last year also, posting a 3.8 percent decline.
While our market still faces a long road ahead to full recovery, the recent reduction in new supply is a positive beacon on the horizon and undoubtedly welcome news for home sellers.
The signs are early and nascent, but there are some promising early indicators that the Twin Cities housing market is beginning to correct and pull back from its two year-beeline in the buyer's favor. While affordability, interest rates and overall supply are still attractive, home sellers are cutting back on new listings substantially in 2008.
For the week ending April 12, there were 2,156 new listings, down a full 20.1 percent from the same week last year. That's the fifth week in the last six that we've seen double-digit percentage drops from 2007 activity. Newly signed purchase agreements (pending sales) are still behind last year also, posting a 3.8 percent decline.
While our market still faces a long road ahead to full recovery, the recent reduction in new supply is a positive beacon on the horizon and undoubtedly welcome news for home sellers.
Tuesday, April 15, 2008
MJarket Rerport for the week of April 14th, 2008
Spring inventory growth remains staid in the Twin Cities housing market as the annual influx of new properties for sale has not been as rambunctious as the levels seen over the last few springs. The total number of homes for sale in the metro area currently sits at 31,615 up only 3.0 percent from the same time last year—the lowest such year-over-year increase for some years. Home sales remain relatively slow as well, with newly signed purchase agreements (pending sales) from the last three months trailing the same period last year by 16.6 percent.
This week's edition of the MAAR Weekly Market Activity Report features an updated Housing Affordability Index (HAI) for April. The HAI fell slightly to 155 due to a seasonal increase in home prices in March but remains a healthy 16.6 percent above where it was two years ago. Softening prices, motivated sellers and a continuation of historically low interest rates have dramatically improved the affordability picture in recent months.
This week's edition of the MAAR Weekly Market Activity Report features an updated Housing Affordability Index (HAI) for April. The HAI fell slightly to 155 due to a seasonal increase in home prices in March but remains a healthy 16.6 percent above where it was two years ago. Softening prices, motivated sellers and a continuation of historically low interest rates have dramatically improved the affordability picture in recent months.
Monday, April 7, 2008
Market report for the week of April 7th, 2008
Weekly Market Activity Report
The Twin Cities housing market is showing early signs of entering a positive phase of correction. The number of new listings entering the market for the week ending March 29 was 14.8 percent behind the same week last year, the fourth consecutive week of double-digit declines relative to last year. Unfortunately, pending sales remain lackadaisical (down 15.9 percent for the same time period comparison), so the total inventory of homes for sale continues to exhibit decelerating growth this spring season—an encouraging momentum change in our shifting supply-demand balance.
This week's edition of the MAAR Weekly Market Activity Report features updated figures for several key metrics. In March, the Days on Market Until Sale held steady at 165 and the Percent of Original List Price Received at Sale dipped slightly to 91.0—both indicators of the continued advantage the buyer holds in this market. The April Months Supply of Inventory increased to 9.6 months, up 23.9 percent from this time last year. A market that's balanced between buyers and sellers would have roughly a 5- to 6-month supply of homes for sale. We haven't been there since 2005.
The Twin Cities housing market is showing early signs of entering a positive phase of correction. The number of new listings entering the market for the week ending March 29 was 14.8 percent behind the same week last year, the fourth consecutive week of double-digit declines relative to last year. Unfortunately, pending sales remain lackadaisical (down 15.9 percent for the same time period comparison), so the total inventory of homes for sale continues to exhibit decelerating growth this spring season—an encouraging momentum change in our shifting supply-demand balance.
This week's edition of the MAAR Weekly Market Activity Report features updated figures for several key metrics. In March, the Days on Market Until Sale held steady at 165 and the Percent of Original List Price Received at Sale dipped slightly to 91.0—both indicators of the continued advantage the buyer holds in this market. The April Months Supply of Inventory increased to 9.6 months, up 23.9 percent from this time last year. A market that's balanced between buyers and sellers would have roughly a 5- to 6-month supply of homes for sale. We haven't been there since 2005.
Tuesday, April 1, 2008
Market report for the week of March 31st, 2008
Weekly Market Activity Report
Vamoosh! Home sellers in the Twin Cities are continuing their great disappearing act, with new listings on the market in 2008 sitting far below last year's rate. Over the last three months, there have been almost 2,500 fewer listings put on the market than there were a year ago—a drop of 9.5 percent.
Inventory is still more plentiful than ever. Despite the pullback, we still have a record high number of houses on the market for this time of year. So what's the takeaway here? Well, if we look closer, we can see that the inventory gap between now and one year ago is closing, and closing hard. We've gone from being up 12.6 percent from a year ago to only 5.5 percent up in the last 12 weeks.
Gut check: We must keep perspective on the challenging environment that sellers still face, despite the softening competition. The number of signed purchase agreements (pending sales) for the last three months is 17.7 percent behind the same period a year ago. There's fewer of everything.
Vamoosh! Home sellers in the Twin Cities are continuing their great disappearing act, with new listings on the market in 2008 sitting far below last year's rate. Over the last three months, there have been almost 2,500 fewer listings put on the market than there were a year ago—a drop of 9.5 percent.
Inventory is still more plentiful than ever. Despite the pullback, we still have a record high number of houses on the market for this time of year. So what's the takeaway here? Well, if we look closer, we can see that the inventory gap between now and one year ago is closing, and closing hard. We've gone from being up 12.6 percent from a year ago to only 5.5 percent up in the last 12 weeks.
Gut check: We must keep perspective on the challenging environment that sellers still face, despite the softening competition. The number of signed purchase agreements (pending sales) for the last three months is 17.7 percent behind the same period a year ago. There's fewer of everything.
Monday, March 24, 2008
Market Report for the week of March 24th, 2008
Weekly Market Activity Report
Potential home buyers waiting for even more new inventory to hit the market may be waiting a long time. For the week ending March 15, there were almost 300 fewer properties put on the market in the Twin Cities than during the same week in 2007—a decline of 12.0 percent. And the number of new listings on the market in the last three months is 6.9 percent behind the same time one year ago. So while total inventory remains high, the frenzied peak of seller activity appears to be behind us.
The number of newly signed purchase agreements jumped significantly from the previous week; and for the same time period comparison last year was down only 8.9 percent. While this is a positive indication that buyers may be beginning to recognize the tremendous opportunities available, we are by no means out of the woods yet. Let's at least hope we're out of the snow.
Potential home buyers waiting for even more new inventory to hit the market may be waiting a long time. For the week ending March 15, there were almost 300 fewer properties put on the market in the Twin Cities than during the same week in 2007—a decline of 12.0 percent. And the number of new listings on the market in the last three months is 6.9 percent behind the same time one year ago. So while total inventory remains high, the frenzied peak of seller activity appears to be behind us.
The number of newly signed purchase agreements jumped significantly from the previous week; and for the same time period comparison last year was down only 8.9 percent. While this is a positive indication that buyers may be beginning to recognize the tremendous opportunities available, we are by no means out of the woods yet. Let's at least hope we're out of the snow.
Tuesday, March 18, 2008
Weekly market review for the week of March 17th, 2008
Weekly Market Activity Report.
Still waiting! Buyer activity remains relatively lethargic in the Twin Cities housing market. For the week ending March 8, the number of new purchase agreements signed was 682, behind the same time last year by 18.7 percent. Despite the deluge of properties available, rapidly improving affordability, attractive interest rates and motivated sellers, buyers appear to be unwilling or unable to take advantage of this incredibly attractive buyer's market.
This conundrum begs a question: Do buyers remain on the sidelines because they so choose or because they have no choice? In other words, is it tightening lending rules or a sincere lack of consumer interest that is keeping buyers in stasis? What do you think?
Weekly Market Activity Report features an updated figure for Months Supply of Inventory, which jumped in March to 9.2. This means that it will take the current supply of properties for sale roughly 9.2 months to sell through completely.
Still waiting! Buyer activity remains relatively lethargic in the Twin Cities housing market. For the week ending March 8, the number of new purchase agreements signed was 682, behind the same time last year by 18.7 percent. Despite the deluge of properties available, rapidly improving affordability, attractive interest rates and motivated sellers, buyers appear to be unwilling or unable to take advantage of this incredibly attractive buyer's market.
This conundrum begs a question: Do buyers remain on the sidelines because they so choose or because they have no choice? In other words, is it tightening lending rules or a sincere lack of consumer interest that is keeping buyers in stasis? What do you think?
Weekly Market Activity Report features an updated figure for Months Supply of Inventory, which jumped in March to 9.2. This means that it will take the current supply of properties for sale roughly 9.2 months to sell through completely.
Tuesday, March 4, 2008
Market update for the week of March 3rd, 2008
New listings for the week ending February 23 posted 1,832 units, down 10.1 percent from the same week in 2007. Signed purchase agreements (pending sales) declined from last year by 15.9 percent for the same timeframe comparison, posting 635 units. Despite the general decline in seller activity, the total number of homes for sale is ahead of this time last year by 9.8 percent. Also, this week's Weekly Market Activity Report features a new March Supply-Demand Ratio of 8.72 houses per buyer, up 38.4 percent from March 2007.
Looking for a silver lining to the weekly litany of grimacing news? Well, the seemingly endless swell in the growth of homes for sale has steadily declined. The Supply-Demand Ratio is the lowest it's been since June 2007. Housing affordability is at its highest point since 2004. And we're receiving anecdotal evidence of increased buyer traffic beyond seasonal norms over the past few weeks.
It ain't all bad news, folks. The word on the sheet may not yet match the work on the sheet, specifically pending sales, but ample supply, lower interest rates, weakening median prices and healthy affordability are all historical buyer opt-ins.
Buyers are out there. They may be uncertain of the market's bottom or current appreciation rates, but unless everyone moves away or decides to rent or does absolutely nothing, pent up buyer demand has the inevitable feel of unfurl. Whether it has already begun or starts a year from today is still in question.
Looking for a silver lining to the weekly litany of grimacing news? Well, the seemingly endless swell in the growth of homes for sale has steadily declined. The Supply-Demand Ratio is the lowest it's been since June 2007. Housing affordability is at its highest point since 2004. And we're receiving anecdotal evidence of increased buyer traffic beyond seasonal norms over the past few weeks.
It ain't all bad news, folks. The word on the sheet may not yet match the work on the sheet, specifically pending sales, but ample supply, lower interest rates, weakening median prices and healthy affordability are all historical buyer opt-ins.
Buyers are out there. They may be uncertain of the market's bottom or current appreciation rates, but unless everyone moves away or decides to rent or does absolutely nothing, pent up buyer demand has the inevitable feel of unfurl. Whether it has already begun or starts a year from today is still in question.
Tuesday, February 26, 2008
Market report for the week of Feb. 25th, 2008
Weekly Market Activity Report
With mercury dropping, snow falling, lips cracking, wet hair freezing, and cars stalling, February has mostly been an exercise in old-fashioned winter hibernation for those of us brave (or foolish) enough to live in the Twin Cities. The weather is by no means the only explanation for the lackluster showing of area home buyers—the uncertainty in the credit markets and dampened consumer confidence are obviously playing their own crucial roles—but it certainly isn't helping. That's why the uptick in temperatures seen in recent days is a welcome sight for home buyers, sellers and real estate brokers alike.
New listings for the week ending February 16 posted 1,859 units, down 8.3 percent from the same week in 2007. Signed purchase agreements (pending sales) declined from last year by 17.8 percent for the same time period comparison, posting 624 units. Despite the general decline in seller activity, the total number of homes for sale is ahead of this time last year by 12.1 percent.
With mercury dropping, snow falling, lips cracking, wet hair freezing, and cars stalling, February has mostly been an exercise in old-fashioned winter hibernation for those of us brave (or foolish) enough to live in the Twin Cities. The weather is by no means the only explanation for the lackluster showing of area home buyers—the uncertainty in the credit markets and dampened consumer confidence are obviously playing their own crucial roles—but it certainly isn't helping. That's why the uptick in temperatures seen in recent days is a welcome sight for home buyers, sellers and real estate brokers alike.
New listings for the week ending February 16 posted 1,859 units, down 8.3 percent from the same week in 2007. Signed purchase agreements (pending sales) declined from last year by 17.8 percent for the same time period comparison, posting 624 units. Despite the general decline in seller activity, the total number of homes for sale is ahead of this time last year by 12.1 percent.
Minneapolis considers cash incentive to help some home buyers
Hoping to prime demand, Minneapolis is proposing a $10,000 bonus for people who buy houses in its 18 most foreclosure-battered neighborhoods.
The $500,000 proposal is making its way to City Hall and has the backing of Mayor R.T. Rybak.
"We want to aggressively rebuild the market," said Tom Streitz, the city's new housing director.
The money could be used to cover down payments, closing costs and repair costs that exceed the home's appraisal. Although structured as a zero-percent loan, the aid would be fully forgiven after five years.
The idea builds on work pioneered several years ago in a cluster of neighborhoods hit hard by foreclosures. First the Folwell neighborhood, and later the Webber-Camden and McKinley neighborhoods, began offering small doses of assistance to home buyers in an attempt to build buyer interest.
Those neighborhoods plan to piggyback their programs on the city proposal, meaning some owner buyers could be eligible for up to $14,000.
"The excitement level in our neighborhood is very high," said Roberta Englund, staff director for the Folwell Neighborhood Association.
The proposal, to be considered by the council next month, has some catches. Borrowers must qualify for traditional credit, rather than the subprime mortgages for less credit-worthy borrowers that led to many foreclosures. The money can also be used for a contract-for-deed purchase from a nonprofit developer. The buyer must agree to homeownership counseling.
But unlike some city programs, the buyer need not be a first-time buyer.
The $500,000 would help with the purchase of at least 50 houses. It comes from city proceeds from the sale of the downtown Hilton hotel.
The 18 city neighborhoods were chosen because they have above-average levels of boarded and vacant property. The rationale for the city help is that boarded houses cripple the sales of other homes on a block, according to Mark Anderson, a contract manager for the city's development agency.
Minneapolis recorded almost 2,900 foreclosures last year, and had another 330 properties sold at sheriff's auction last month.
Buyers must purchase in one of those neighborhoods. All but four neighborhoods on the North Side are included, along with the Phillips, Whittier, Central and Powderhorn Park neighborhoods on the South Side and the Beltrami and Holland neighborhoods of northeast Minneapolis.
"We really need to reestablish a market in some of the neighborhoods that are really challenged," said Barbara Johnson, a North Side council member.
By STEVE BRANDT, Star Tribune
Last update: February 25, 2008 - 11:24 PM
The $500,000 proposal is making its way to City Hall and has the backing of Mayor R.T. Rybak.
"We want to aggressively rebuild the market," said Tom Streitz, the city's new housing director.
The money could be used to cover down payments, closing costs and repair costs that exceed the home's appraisal. Although structured as a zero-percent loan, the aid would be fully forgiven after five years.
The idea builds on work pioneered several years ago in a cluster of neighborhoods hit hard by foreclosures. First the Folwell neighborhood, and later the Webber-Camden and McKinley neighborhoods, began offering small doses of assistance to home buyers in an attempt to build buyer interest.
Those neighborhoods plan to piggyback their programs on the city proposal, meaning some owner buyers could be eligible for up to $14,000.
"The excitement level in our neighborhood is very high," said Roberta Englund, staff director for the Folwell Neighborhood Association.
The proposal, to be considered by the council next month, has some catches. Borrowers must qualify for traditional credit, rather than the subprime mortgages for less credit-worthy borrowers that led to many foreclosures. The money can also be used for a contract-for-deed purchase from a nonprofit developer. The buyer must agree to homeownership counseling.
But unlike some city programs, the buyer need not be a first-time buyer.
The $500,000 would help with the purchase of at least 50 houses. It comes from city proceeds from the sale of the downtown Hilton hotel.
The 18 city neighborhoods were chosen because they have above-average levels of boarded and vacant property. The rationale for the city help is that boarded houses cripple the sales of other homes on a block, according to Mark Anderson, a contract manager for the city's development agency.
Minneapolis recorded almost 2,900 foreclosures last year, and had another 330 properties sold at sheriff's auction last month.
Buyers must purchase in one of those neighborhoods. All but four neighborhoods on the North Side are included, along with the Phillips, Whittier, Central and Powderhorn Park neighborhoods on the South Side and the Beltrami and Holland neighborhoods of northeast Minneapolis.
"We really need to reestablish a market in some of the neighborhoods that are really challenged," said Barbara Johnson, a North Side council member.
By STEVE BRANDT, Star Tribune
Last update: February 25, 2008 - 11:24 PM
Wednesday, February 20, 2008
Floating soon to a river near you; St. Paul-based developer plans on bringing 'floating condo' through Stillwater
The boat, yet to be constructed, has been dubbed the Marquette and will be the first residential boat to cruise U.S. rivers full time. Plans call for 170 condominiums to be built on the steel river-barge hull, housing a community of 350 people who will stop at northern ports in the summer, with southern and Gulf Coast ports in the winter.
Nelson is the founder of River Cities, a St. Paul-based development company looking to build the world's largest inland passenger ship - which plans to float 10,700 miles of the Mississippi River and its navigational tributaries. He plans to bring the "floating community" to Stillwater in 2010.
"I'm a big dreamer. I'm really a pretty persistent person," Nelson said of creating the $94 million residential boat. "I think it's fair to say no one's built a boat like this on inland water."
For the full story and a picture of the boat, go to:
http://www.stillwatergazette.com/articles/2008/02/04/news/news500.txt
Nelson is the founder of River Cities, a St. Paul-based development company looking to build the world's largest inland passenger ship - which plans to float 10,700 miles of the Mississippi River and its navigational tributaries. He plans to bring the "floating community" to Stillwater in 2010.
"I'm a big dreamer. I'm really a pretty persistent person," Nelson said of creating the $94 million residential boat. "I think it's fair to say no one's built a boat like this on inland water."
For the full story and a picture of the boat, go to:
http://www.stillwatergazette.com/articles/2008/02/04/news/news500.txt
Tuesday, February 19, 2008
Market Report for the week of Feb. 19th, 2008
As 2008 progresses, the picture remains relatively static. New listings are holding steady with last year's pace, home sales remain sluggish and the total inventory of houses for sale is at record levels—all of which points to a market in the buyer's favor.
Yes, it's been a challenge to think of fresh ways to say the same thing every week: Sales down, inventory up. buyer's market, interest rates low, prices low, affordability high, buy now. If it were 1978, we'd be a broken record; 1988, a tangled tape; 1998, a skipping CD. But it's 2008, and digital capabilities have eliminated these faults while increasing the ability to interact with the makers of the recording. So let's take advantage.
In case you watch this space each week simply for the weekly numbers, here they are: For the week ending February 18, new listings posted 2,125 units, up 1.9 percent from the same week in 2007. New purchase agreements (pending sales) posted 634 units, down 13.9 percent for the same time period comparison.
Yes, it's been a challenge to think of fresh ways to say the same thing every week: Sales down, inventory up. buyer's market, interest rates low, prices low, affordability high, buy now. If it were 1978, we'd be a broken record; 1988, a tangled tape; 1998, a skipping CD. But it's 2008, and digital capabilities have eliminated these faults while increasing the ability to interact with the makers of the recording. So let's take advantage.
In case you watch this space each week simply for the weekly numbers, here they are: For the week ending February 18, new listings posted 2,125 units, up 1.9 percent from the same week in 2007. New purchase agreements (pending sales) posted 634 units, down 13.9 percent for the same time period comparison.
Tuesday, February 12, 2008
Market report for the week of Feb 11th.
Weekly Market Activity Report
With both the temperature and the region's home prices dropping, home buyers who are willing to brave the harsh and cold meteorological landscape are finding the home buying environment quite warm and welcoming. The MAAR Housing Affordability Index (HAI), which measures how affordable Twin Cities housing is to its residents, jumped in February to 149—the highest level in nearly four years—thanks to continued declines in mortgage rates, a smorgasbord of homes to pick from and a seller psychology that is motivated to move and ready to negotiate.
For the week ending February 2, the number of new units on the market was 1,930—a full 10.2 percent behind the same week in 2007. The decline in listings was met by an even more hearty decline in signed purchase agreements, as pending sales fell by 28.7 percent for the same time period.
In January, the Days on Market Until Sale increased to 165 and the Percent of Original List Price Received at Sale fell to 90.9—both indicators of the continued advantage the buyer holds in this market. The February Months Supply of Inventory increased to 8.9 months, up 37.5 percent from this time last year. A market that's balanced between buyers and sellers would have roughly a 5- to 6-month supply of homes for sale.
With both the temperature and the region's home prices dropping, home buyers who are willing to brave the harsh and cold meteorological landscape are finding the home buying environment quite warm and welcoming. The MAAR Housing Affordability Index (HAI), which measures how affordable Twin Cities housing is to its residents, jumped in February to 149—the highest level in nearly four years—thanks to continued declines in mortgage rates, a smorgasbord of homes to pick from and a seller psychology that is motivated to move and ready to negotiate.
For the week ending February 2, the number of new units on the market was 1,930—a full 10.2 percent behind the same week in 2007. The decline in listings was met by an even more hearty decline in signed purchase agreements, as pending sales fell by 28.7 percent for the same time period.
In January, the Days on Market Until Sale increased to 165 and the Percent of Original List Price Received at Sale fell to 90.9—both indicators of the continued advantage the buyer holds in this market. The February Months Supply of Inventory increased to 8.9 months, up 37.5 percent from this time last year. A market that's balanced between buyers and sellers would have roughly a 5- to 6-month supply of homes for sale.
Monday, February 4, 2008
Market Activity Report for the week of Feb. 4th
Weekly Market Activity Report
With cold weather, high winds and relatively low consumer confidence, the Twin Cities housing market continues to experience low levels of buyer activity in January. Newly signed purchase agreements (pending sales) posted 485 units sold for the week ending January 19, a decline of 19.4 percent from this time last year. For the same time period comparison, new listings held relatively steady, posting 1,877 new units on the market. Roughly half of these are re-lists that have already been placed on the market at least once in the last 12 months.
With cold weather, high winds and relatively low consumer confidence, the Twin Cities housing market continues to experience low levels of buyer activity in January. Newly signed purchase agreements (pending sales) posted 485 units sold for the week ending January 19, a decline of 19.4 percent from this time last year. For the same time period comparison, new listings held relatively steady, posting 1,877 new units on the market. Roughly half of these are re-lists that have already been placed on the market at least once in the last 12 months.
Monday, January 28, 2008
For the week of Jan 28th. Weekly Market Activity Report
Weekly Market Activity Report
With cold weather, high winds and relatively low consumer confidence, the Twin Cities housing market continues to experience low levels of buyer activity in January. Newly signed purchase agreements (pending sales) posted 485 units sold for the week ending January 19, a decline of 19.4 percent from this time last year. For the same time period comparison, new listings held relatively steady, posting 1,877 new units on the market. Roughly half of these are re-lists that have already been placed on the market at least once in the last 12 months.
With cold weather, high winds and relatively low consumer confidence, the Twin Cities housing market continues to experience low levels of buyer activity in January. Newly signed purchase agreements (pending sales) posted 485 units sold for the week ending January 19, a decline of 19.4 percent from this time last year. For the same time period comparison, new listings held relatively steady, posting 1,877 new units on the market. Roughly half of these are re-lists that have already been placed on the market at least once in the last 12 months.
Wednesday, January 23, 2008
Weekly Market Activity Report
With the arrival of 2008, the Twin Cities housing market remained in its 2007-end holding pattern. Purchase agreements were lower and new listings held steady. For the week ending January 12, there were 4.8 percent fewer new listings on the market compared to last year at this time, while pending sales declined by 24.0 percent for the same time period. The total number of homes for sale in the region is beginning it's annual new year ascent, with 27,931 housing units on the market—up 12.2 percent from the same time last year
IMPORTANT REAL ESTATE MARKET INFORMATION
Corrections continue in 2007 Twin Cities housing market
Twin Cities, Minnesota (January 16, 2008) – On the heels of several uninterrupted years of frenzied growth, the Twin Cities housing market finished its second full year of corrective declines in 2007, according to new analysis from the four Twin Cities area REALTOR® associations.
Despite abundant inventory, motivated sellers, low interest rates and dramatically improved affordability, buyer activity declined, and the year ended with 40,055 closed sales, a decline of 16.4 percent from 2006. Newly signed purchase agreements—pending sales—showed a similar decline of 15.5 percent, posting 43,560 units.
While home sales cooled, so did listing activity. The number of new listings on the market during 2007 decreased by 2.8 percent compared to last year. Despite the decline in listings, lowered demand meant that buyers remained firmly in the driver's seat through the year, and this dynamic showed in home values. The 2007 median sales price was $225,000, a decline of 2.2 percent compared to 2006.
"Given the run-up in home values we saw in the early part of this decade, it's not surprising that some of that value would be taken back by market corrections," said Kay McDonough, 2008 president of the Southern Twin Cities Association of REALTORS®. "While this year-over-year decline is rare, the drawn-out price increases we saw previously are even more uncommon."
"One of the key ingredients to our eventual rebound will be improving the affordability of our region's homes, which had become problematic," said Rod Schimmel, 2008 president of the North Metro REALTORS® Association. "It was a great year for affordability, which created new opportunities for first-time home buyers."
"No doubt about it, we still face some tough times ahead," said Kevin Knudsen, 2008 president for the Minneapolis Area Association of REALTORS®. "Anyone who tells you that the rebound will be quick and painless just isn't paying attention."
"The eventual return of home buyers will be gradual and take time," said Greg Bauman, 2008 president of the Saint Paul Area Association of REALTORS®. "But it's important to recognize that positive changes are taking place in the local market and they are setting the stage for a healthy future."
The 2007 Twin Cities housing statistics were released at the Residential Real Estate Summit on January 16, 2008—a joint event from the four Twin Cities REALTOR® associations held at the Earle Brown Heritage Center in Brooklyn Center, MN. This first-ever gathering of influential real estate players also featured a keynote address from Martha McMurry from the Minnesota Demographer's Office and panels on such wide-ranging subjects as lending laws, market projections, the new real estate consumer, generational marketing, emerging markets, foreclosures, and new construction.
Twin Cities, Minnesota (January 16, 2008) – On the heels of several uninterrupted years of frenzied growth, the Twin Cities housing market finished its second full year of corrective declines in 2007, according to new analysis from the four Twin Cities area REALTOR® associations.
Despite abundant inventory, motivated sellers, low interest rates and dramatically improved affordability, buyer activity declined, and the year ended with 40,055 closed sales, a decline of 16.4 percent from 2006. Newly signed purchase agreements—pending sales—showed a similar decline of 15.5 percent, posting 43,560 units.
While home sales cooled, so did listing activity. The number of new listings on the market during 2007 decreased by 2.8 percent compared to last year. Despite the decline in listings, lowered demand meant that buyers remained firmly in the driver's seat through the year, and this dynamic showed in home values. The 2007 median sales price was $225,000, a decline of 2.2 percent compared to 2006.
"Given the run-up in home values we saw in the early part of this decade, it's not surprising that some of that value would be taken back by market corrections," said Kay McDonough, 2008 president of the Southern Twin Cities Association of REALTORS®. "While this year-over-year decline is rare, the drawn-out price increases we saw previously are even more uncommon."
"One of the key ingredients to our eventual rebound will be improving the affordability of our region's homes, which had become problematic," said Rod Schimmel, 2008 president of the North Metro REALTORS® Association. "It was a great year for affordability, which created new opportunities for first-time home buyers."
"No doubt about it, we still face some tough times ahead," said Kevin Knudsen, 2008 president for the Minneapolis Area Association of REALTORS®. "Anyone who tells you that the rebound will be quick and painless just isn't paying attention."
"The eventual return of home buyers will be gradual and take time," said Greg Bauman, 2008 president of the Saint Paul Area Association of REALTORS®. "But it's important to recognize that positive changes are taking place in the local market and they are setting the stage for a healthy future."
The 2007 Twin Cities housing statistics were released at the Residential Real Estate Summit on January 16, 2008—a joint event from the four Twin Cities REALTOR® associations held at the Earle Brown Heritage Center in Brooklyn Center, MN. This first-ever gathering of influential real estate players also featured a keynote address from Martha McMurry from the Minnesota Demographer's Office and panels on such wide-ranging subjects as lending laws, market projections, the new real estate consumer, generational marketing, emerging markets, foreclosures, and new construction.
Friday, January 18, 2008
Week of January 14, 2008
For the second straight week, the distractions of a holiday placed the
Twin Cities housing market in a holding pattern. While new listings
jumped from their holiday-reduced nadir the week before, they remain
25.8 percent behind the same week last year. Newly signed purchase
agreements (pending sales) increased as well, but to a slighter degree
than listings. Once again, the vagaries of the holiday mean these
numbers have little meaning relative to the underlying market
conditions. This week's edition of the MAAR Weekly Market Activity Report
features updated January 2008 figures for Mortgage Rates and the
Housing Affordability Index (HAI). Mortgage Rates increased slightly to
6.3 percent but remain near historical lows. The HAI held steady at 141
due to counter-balanced trends of increased interest rates and
seasonally decreased home prices.
Twin Cities housing market in a holding pattern. While new listings
jumped from their holiday-reduced nadir the week before, they remain
25.8 percent behind the same week last year. Newly signed purchase
agreements (pending sales) increased as well, but to a slighter degree
than listings. Once again, the vagaries of the holiday mean these
numbers have little meaning relative to the underlying market
conditions. This week's edition of the MAAR Weekly Market Activity Report
features updated January 2008 figures for Mortgage Rates and the
Housing Affordability Index (HAI). Mortgage Rates increased slightly to
6.3 percent but remain near historical lows. The HAI held steady at 141
due to counter-balanced trends of increased interest rates and
seasonally decreased home prices.
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