Weekly Market Activity Report

As mortgage rates decline and home sellers appear increasingly willing to accept moderate offers, home sales have picked up slightly in recent weeks. Newly signed purchase agreements (pending sales) for the week ending November 3 were behind last year at this time by only 13.6 percent. New listings on the market also increased, up 7.3 percent for the same time period comparison. This week's edition of MAAR's Weekly Market Activity Report features updated figures for several key metrics:

Days on Market Until Sale in October was 142 days, an increase of 20.3 percent from one year ago.
Percent of Original List Price Received at Sale declined further to 93.1 percent and should continue to fall until early 2008.
The November Housing Affordability Index increased dramatically to 138 due to declines in mortgage rates and home prices, an important trend for the long-term health and accessibility of our market.
Months Supply of Inventory declined slightly to 9.5 months due to the annual drop in the number of homes for sale that takes place in November. [where: 55405]

Weekly Market Activity Report

Weekly Market Activity Report

As the fall season progresses and we move toward winter, the number of homes for sale in the Twin Cities is in the midst of its annual decline. Total inventory in the 13-county region has fallen by almost 2,000 units in the last two months and should continue to drop through the remainder of 2007. Despite the seasonal dip, home sellers who choose to leave their homes on the market will still face a tough market, as the number of buyers is relatively low. Newly signed purchase agreements (pending sales) for the week ending October 20 were behind the same week last year by 18.1 percent. [where: 55405]

The real estate market for the week of October 1st, 2008

While sellers continue to list fewer homes, buyers remain firmly in control in
the Twin Cities housing market. New listings on the market for the week
ending September 16 were behind the same time last year by 11.4 percent,
while newly signed purchase agreements (pending sales) fell by 26.3 percent
for the same time period. With slow sales comes decreased inventory
absorption; the number of homes for sale is 9.9 percent higher than at this
time in 2006.

The SDR increased slightly to 10.47, which means there
are currently 10.47 homes on the market for every buyer—a new October
record. Following the key interest rate cut from the U.S. Federal Reserve,
rates dropped slightly from last month to 6.7 percent. With home prices
declining moderately, further rate declines would improve affordability.
[where: 55405]

Bryn Mawr and Harrison New Development

Bryn Mawr and Harrison neighborhoods are aggressively pursuing guaranties that jobs and affordable housing will flow from the redevelopment of Bassett Creek Valely, a 230 acre parcel of land it shares with Bryn Mawr. Ryan Companies is proposing to redevelop two parcels of city owned land, including 26 acre city impound lot off of Colfax Ave North and Linden Yards, a 30acre strip of property along highway 394 used for storage and concrete crushing. The proposal includes 107 - 205 million square feet of office space and up to 1,000 housing units in the Linden Yards are. Up to 450 housing units and 25 acres of parkland would replace the impound lot. [where: 55405]

Bryn Mawr and Harrison New Development

Special Fed Alert - Interest Rate Drop

The long awaited Fed decision arrived with a bang! The Fed surprised many economists and traders with a half percent cut in both the Fed Funds and Discount Rates. Stocks soared higher and enjoyed their largest gain since 2003.
What does the Fed cut mean? Rates on consumer debt, car loans, and Home Equity lines will all benefit. But because Home Loan rates are tied more closely to inflation, it is not uncommon to see less of a reaction...or even an opposite reaction in mortgage rates.

The Fed cut also hurts rates of return on investments, which gives foreign investors less incentive to invest in US securities. This has sent the Dollar much lower against the currency of most major foreign countries. This makes foreign goods more expensive for us to buy, which adds to inflation pressures.
Overall, the Fed cut is good news for the economy, but may nudge inflation a bit higher.

I love Bryn Mawr

I have to say its a heck of a neighborhood. Take an aerial look at it. Your two minutes from downtown Minneapolis, from three wonderful lakes, an executive 18 hole golf course, mountain bike trails, wild flower garden, hiking trails, multiple parks, swimming lake, show tubing, cross country skiing, snow boarding, coffee shops, salons, markets, massage and the list goes one. Imagine having all of this right in your backyard. If your into really living life to its fullest, you will find everything is only 2 minutes away if you live in Bryn Mawr. Call me if you would like to learn more about this fabulous neighborhood because I don't only work here but I also live here. [where: 55405]

Market Update – Sept. 2007

We know all markets are not the same. Some pockets of our metro market continue to experience multiple offer situations, while others require multiple price reductions and more time on the market. To further illustrate this point, what’s true for the national market may not be true locally. Recently, the National Association of REALTORS® (NAR) forecasted a rebounding real estate market in 2008. While we believe that an upturn will occur, we expect the Twin Cities market will continue its post-boom correction a little longer than national predictions. One factor contributing to this might include Minnesota’s unemployment rate. While still among the lowest in the country, the rate has risen from 3.9 percent to 4.6 percent compared to the national unemployment rate, which has been level over the same period of time. However, according to the U.S. Census Bureau, Minnesota remains among the most affluent states in America, boasting the 10th highest median household income in the country.

Sent to me by Bob Peltier of Edina Realty

The sky is not falling, the real estate bubble IS NOT bursting.

Every where I turn there is a story talking about how bad the real estate market is. Yes, its has taken a 180 degree turn but its still a great market where peoples homes have appreciated nicely over the past 6 years. So we made an adjustment, big deal, we couldn't keep appreciating at the rate we were going. No one would of been able to buy a home.

Homes are still selling, some quicker than others and some in multiple offer situations. Believe it, I hear stories every week. There are still buyers buying. So, if your worried about selling, don't be, just make sure you have a good realtor working for you. If your thinking of buying and waiting for the market to bottom out, you better put away the crystal ball because it doesn't work and the market is starting to slowly recover. [where: 55405]

Weekly Market Activity Report

Sellers and builders continue to curb activity in the Twin Cities housing market, with the week ending August 25 posting only 1,874 new listings—down 9.5 percent from the same week in 2006 and even further from their early summer peak. Despite the decline in new seller activity, the number of homes on the market remains at a record high for this time of year with 34,225 residential units for sale. This persistently high inventory is due to slowed absorption caused by sluggish home sales; newly signed purchase agreements were 18.7 percent behind this time last year.

September 2007 figure for our Supply-Demand Ratio (SDR). The SDR grew to 10.39, which means there are 10.39 homes for sale per buyer. This is an increase of 24.8 percent from last September, and this figure should continue to grow through December before declining in 2008 with the end of the winter season slowdown.

Brought to you by Minneapolis Area Association of Realtors.