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.
Monday, January 28, 2008
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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