In 2008, Labor Day fell on September 1; this year, it fell on September 7. That six-day gap is enough to make our year-over-year comparisons of weekly market activity look a little goofy this week. For instance, for the week ending September 5, there were a whopping 42.9 percent more pending sales than there were a year ago, but this is only because Labor Day—a holiday that notoriously silences the local real estate market for several days—fell during that week last year and didn't this year. Expect similar confusion next week.
Independent of these numerical oddities, sales are still extremely robust as the days remaining on the first-time buyer tax credit continues to tick down. 78...77...76...
New metrics updated this week:
• Housing Affordability Index: At 195, it towers over last year's affordability by 29.1 percent. Falling prices continue to do their job, at least for buyers.
• Months Supply of Inventory: The 6.9 months of inventory available is 30.3 percent below this time last year.
Monday, September 14, 2009
Tuesday, September 8, 2009
Weekly Market Activity Report
Weekly Market Activity Report
For the first time in 9 months, the number of weekly new listings coming on the market was actually higher than it was a year ago. The 1,641 new homes on the market during the week ending August 29 represent a 3.3 percent increase from a year ago. The slight year-over-year uptick is due in part to growth in the number of new, traditional, non-lender-mediated listings.
For the most recent reporting week, the number of brand new traditional listings (excluding re-lists that have already been on the market sometime in the last 12 months) has grown 20.3 percent compared to a year ago. Home sellers are becoming more active, likely in response to the increase in home sales seen throughout the year.
And if you look at three of our newly updated metrics, it becomes obvious why more sellers are jumping in:
• Days on Market Until Sale – 133 days, a drop of 7.1 percent from a year ago.
• Percent of Original List Price Received at Sale – 94.1, up 1.5 percent from a year ago.
• Supply-Demand Ratio – 5.46 homes per buyer in September, down 30.3 percent from a year ago.
For the first time in 9 months, the number of weekly new listings coming on the market was actually higher than it was a year ago. The 1,641 new homes on the market during the week ending August 29 represent a 3.3 percent increase from a year ago. The slight year-over-year uptick is due in part to growth in the number of new, traditional, non-lender-mediated listings.
For the most recent reporting week, the number of brand new traditional listings (excluding re-lists that have already been on the market sometime in the last 12 months) has grown 20.3 percent compared to a year ago. Home sellers are becoming more active, likely in response to the increase in home sales seen throughout the year.
And if you look at three of our newly updated metrics, it becomes obvious why more sellers are jumping in:
• Days on Market Until Sale – 133 days, a drop of 7.1 percent from a year ago.
• Percent of Original List Price Received at Sale – 94.1, up 1.5 percent from a year ago.
• Supply-Demand Ratio – 5.46 homes per buyer in September, down 30.3 percent from a year ago.
Tuesday, September 1, 2009
Weekly Market Activity Report
In 2006, the inventory of homes for sale was plentiful and buyers were in short supply. Regular followers of our weekly report will have noticed that a shift has been in the works for several months. The week-to-week patterns of pending sales and inventory resemble market patterns from last year, but pending sales have consistently outperformed last year's numbers. In fact, the most recent week's 1,012 signed purchase agreements represents a 23.7 percent increase over last year and is the 59th week of the last 60 with a year-over-year increase.
Active listings are dwindling, down 21.2 percent from last year. Inventory supply has dropped from 10.5 months to 7.2 months in the last year, and it has dropped quickly in the lower price ranges where sales activity is the strongest. Shift, change, adjust, correct, stabilize—take your pick of these words when describing today's housing market, and you'll be right.
Active listings are dwindling, down 21.2 percent from last year. Inventory supply has dropped from 10.5 months to 7.2 months in the last year, and it has dropped quickly in the lower price ranges where sales activity is the strongest. Shift, change, adjust, correct, stabilize—take your pick of these words when describing today's housing market, and you'll be right.
Tuesday, August 18, 2009
Weekly Market Report for August 18th.
Weekly Market Activity Report
The Twin Cities housing market continues to regain a semblance of balance in supply and demand. For the week ending August 8, there were 1,802 new listings, down 9.5 percent from last year. There were also 1,037 purchase agreements signed (pending sales), up 15.2 percent above last year. The total inventory of homes available for sale is down 21.5 percent from a year ago.
The Housing Affordability Index (HAI) of 195 has begun to taper off from its high of 219 earlier this year, yet the current HAI still represents an increase of more than 30 percent from the boom years earlier this decade. Months Supply of Inventory currently sits at 7.2—down 31.4 percent from last year's mark of 10.5.
All in all, the see-saw is moving back towards equilibrium. This doesn't mean that everything is hunky-dory; sellers still face a challenging market, especially in the higher price ranges. But the overall shift is welcome news.
The Twin Cities housing market continues to regain a semblance of balance in supply and demand. For the week ending August 8, there were 1,802 new listings, down 9.5 percent from last year. There were also 1,037 purchase agreements signed (pending sales), up 15.2 percent above last year. The total inventory of homes available for sale is down 21.5 percent from a year ago.
The Housing Affordability Index (HAI) of 195 has begun to taper off from its high of 219 earlier this year, yet the current HAI still represents an increase of more than 30 percent from the boom years earlier this decade. Months Supply of Inventory currently sits at 7.2—down 31.4 percent from last year's mark of 10.5.
All in all, the see-saw is moving back towards equilibrium. This doesn't mean that everything is hunky-dory; sellers still face a challenging market, especially in the higher price ranges. But the overall shift is welcome news.
Monday, June 15, 2009
Less foreclosures mean more tradtional home sales.
The number of traditional home sales is growing. Only 43.0 percent of the pending sales in May were lender-mediated, compared to 59.4 percent in January. This decrease in lender-mediated market share brought the overall median price up $12,000 from last month to $165,000 in May. Despite the month-over-month increase, that's still a 19.5 percent drop from May 2008. The median May sales price of traditional homes was $214,000, down 4.3 percent from a year ago. Lender-mediated homes posted a May figure of $122,000, down 20.8 percent from a year ago.
Monday, May 4, 2009
Weekly Market Activity Report
Weekly Market Activity Report
We trust that you had a good May Day, International Worker's Day or early Cinco de Mayo celebration. Whatever your cause for celebration, the Twin Cities housing market did not take a holiday. During the week ending April 25, pending sales posted their fourth consecutive week of more than 1,000 sales, a feat not accomplished since 2006. The 1,078 sales represent a 34.1 percent increase over the same week last year.
Supply remains a different story. New listings were hitting the market at a robust pace last spring, but activity has been comparatively tepid this year. New listings are 16.4 percent behind one year ago and the overall supply of homes for sale trails last year by 19.0 percent. We have remained near 26,000 homes for sale for most of this year, betraying the healthy seasonal growth we typically see this time of year.
Yes, supply is down, but there's still plenty of inventory out there. April's showers are behind us, the Housing Affordability Index is stratospherically healthy, low mortgage rates persist, and a first-time buyer tax credit remains in effect. At this clip, your buyers could certainly find May flowers blooming in front of their newly purchased homes.
We trust that you had a good May Day, International Worker's Day or early Cinco de Mayo celebration. Whatever your cause for celebration, the Twin Cities housing market did not take a holiday. During the week ending April 25, pending sales posted their fourth consecutive week of more than 1,000 sales, a feat not accomplished since 2006. The 1,078 sales represent a 34.1 percent increase over the same week last year.
Supply remains a different story. New listings were hitting the market at a robust pace last spring, but activity has been comparatively tepid this year. New listings are 16.4 percent behind one year ago and the overall supply of homes for sale trails last year by 19.0 percent. We have remained near 26,000 homes for sale for most of this year, betraying the healthy seasonal growth we typically see this time of year.
Yes, supply is down, but there's still plenty of inventory out there. April's showers are behind us, the Housing Affordability Index is stratospherically healthy, low mortgage rates persist, and a first-time buyer tax credit remains in effect. At this clip, your buyers could certainly find May flowers blooming in front of their newly purchased homes.
Tuesday, April 7, 2009
Weekly Market Update. Its looking GOOD!!!
Weekly Market Activity Report
There's no April Foolin' this time of year regarding the Twin Cities housing market. We're able to report several encouraging signs this week as the market seems to be "Def" to any signs of slowdown.
For the week ending March 28, pending sales continue to reflect strong growth, increasing 28.2 percent over last year. Our oversupply continues to draw down, with new listings declining by 12.2 percent for the same time period comparison. The total number of houses for sale is 26,131, a decline of 16.2 percent from this time in 2008.
Days on Market Until Sale continues its downward trend, dropping 9 percent over last year to 150 days. Percent of Original List Price Received at Sale is definitely not Bringin' on the Heartbreak as we're showing our first upward year-over-year move in (a rock of) ages, increasing by 0.6 percent this month. Our Supply-Demand Ratio fell to 5.57, which means there are 5.57 houses for sale for each buyer in April, down 23.5 percent from last year.
With mortgage rates at historic lows and the $8,000 federal tax credit for first-time home buyers, it's not surprising to see some arena rock level of hysteria in our local marketplace. We're certainly excited; thus the untucking of our dress shirt this week.
There's no April Foolin' this time of year regarding the Twin Cities housing market. We're able to report several encouraging signs this week as the market seems to be "Def" to any signs of slowdown.
For the week ending March 28, pending sales continue to reflect strong growth, increasing 28.2 percent over last year. Our oversupply continues to draw down, with new listings declining by 12.2 percent for the same time period comparison. The total number of houses for sale is 26,131, a decline of 16.2 percent from this time in 2008.
Days on Market Until Sale continues its downward trend, dropping 9 percent over last year to 150 days. Percent of Original List Price Received at Sale is definitely not Bringin' on the Heartbreak as we're showing our first upward year-over-year move in (a rock of) ages, increasing by 0.6 percent this month. Our Supply-Demand Ratio fell to 5.57, which means there are 5.57 houses for sale for each buyer in April, down 23.5 percent from last year.
With mortgage rates at historic lows and the $8,000 federal tax credit for first-time home buyers, it's not surprising to see some arena rock level of hysteria in our local marketplace. We're certainly excited; thus the untucking of our dress shirt this week.
Tuesday, March 31, 2009
The housing market is looking better every week.
Weekly Market Activity Report
With mortgage rates plunging downward in recent weeks in response to actions taken by the Federal Reserve, home buying activity remains strong.
For the week ending March 21, pending sales in the Twin Cities were 13.0 percent higher than the same week last year, while the number of new listings on the market was basically flat. Over the last three months, there have been approximately 1,200 more signed purchase agreements than there were a year ago and 3,000 fewer new listings. During this time, 58.1 percent of pending sales have been lender-mediated foreclosures and short sales, while 37.1 percent of new listings have been lender-mediated. The fact that the share of lender-mediated sales easily exceeds the share of new lender-mediated listings is a hopeful sign.
New buyers entering this market will be met with strong affordability but will have less to choose from compared to previous years. There are currently 26,064 homes for sale in the metro area, which is down 15.7 percent and 4,840 units from this time in 2008.
With mortgage rates plunging downward in recent weeks in response to actions taken by the Federal Reserve, home buying activity remains strong.
For the week ending March 21, pending sales in the Twin Cities were 13.0 percent higher than the same week last year, while the number of new listings on the market was basically flat. Over the last three months, there have been approximately 1,200 more signed purchase agreements than there were a year ago and 3,000 fewer new listings. During this time, 58.1 percent of pending sales have been lender-mediated foreclosures and short sales, while 37.1 percent of new listings have been lender-mediated. The fact that the share of lender-mediated sales easily exceeds the share of new lender-mediated listings is a hopeful sign.
New buyers entering this market will be met with strong affordability but will have less to choose from compared to previous years. There are currently 26,064 homes for sale in the metro area, which is down 15.7 percent and 4,840 units from this time in 2008.
Monday, March 23, 2009
Weekly Market Activity Report
Weekly Market Activity Report
Has everyone remembered to "spring" forward? It looks like the Twin Cities Housing Market certainly has, as the new season has brought in an uptick in sales along with the warm weather. The market can only hope that "spring" fever is more than just a figure of speech.
Speaking of pending sales, while they have tapered off during the week ending March 14, there is no denying that since the new year began pending sales have steadily outperformed last year’s numbers. In fact, even with almost no increase in pending sales activity the 870 pending sales for the week are still 14.9 percent higher than last March at this time.
Total active listings are another story. While new listings for this period are only 13.9 percent lower than last year, active listings are down nearly 14.7 percent. This can be looked at in a positive light, however if you consider that pending sales, decreasing inventory and higher HAI (Housing Affordability Index) are all helping to get more people into homes throughout the new spring season. This coupled with the federal government’s tax credit efforts could give the Twin Cities housing market the added boost it needs to awaken and to realize the potential that is out there.
There are many other events that coincide with spring: spring training, spring fever, spring boards… ok, that last one isn't technically associated with the season. But with the Month’s Supply of Inventory for March down 15.2 percent over last year, agents across the Twin Cities can assist buyers in diving right into the market now that conditions are beginning to warm.
Has everyone remembered to "spring" forward? It looks like the Twin Cities Housing Market certainly has, as the new season has brought in an uptick in sales along with the warm weather. The market can only hope that "spring" fever is more than just a figure of speech.
Speaking of pending sales, while they have tapered off during the week ending March 14, there is no denying that since the new year began pending sales have steadily outperformed last year’s numbers. In fact, even with almost no increase in pending sales activity the 870 pending sales for the week are still 14.9 percent higher than last March at this time.
Total active listings are another story. While new listings for this period are only 13.9 percent lower than last year, active listings are down nearly 14.7 percent. This can be looked at in a positive light, however if you consider that pending sales, decreasing inventory and higher HAI (Housing Affordability Index) are all helping to get more people into homes throughout the new spring season. This coupled with the federal government’s tax credit efforts could give the Twin Cities housing market the added boost it needs to awaken and to realize the potential that is out there.
There are many other events that coincide with spring: spring training, spring fever, spring boards… ok, that last one isn't technically associated with the season. But with the Month’s Supply of Inventory for March down 15.2 percent over last year, agents across the Twin Cities can assist buyers in diving right into the market now that conditions are beginning to warm.
Tuesday, February 24, 2009
60.3% of home sales were lender-mediated foreclosures or short sales. WOW!!
One. That's the number of times over the last 33 weeks that we've had fewer pending sales this year than we did a year ago. And the week in question was Thanksgiving—a week where making an offer on a home is typically ignored in favor of turkey and afternoon naps during another loss by the Detroit Lions.
The buying party continued for the week ending February 14, as there were 731 pending sales in the Twin Cities—up 17.1 percent. Over the last three months, there have been almost 1,200 more pending sales than there were last year. During this time period, 60.3 percent of sales were lender-mediated foreclosures or short sales.
Increased sales means increased absorption of inventory means less houses for sale. There are approximately 4,000 fewer houses for sale right now than there were at this time last year, a drop of nearly 14 percent. New listings remain sluggish as well. The most recent reporting week saw a 9.5 percent year-over-year drop.
The buying party continued for the week ending February 14, as there were 731 pending sales in the Twin Cities—up 17.1 percent. Over the last three months, there have been almost 1,200 more pending sales than there were last year. During this time period, 60.3 percent of sales were lender-mediated foreclosures or short sales.
Increased sales means increased absorption of inventory means less houses for sale. There are approximately 4,000 fewer houses for sale right now than there were at this time last year, a drop of nearly 14 percent. New listings remain sluggish as well. The most recent reporting week saw a 9.5 percent year-over-year drop.
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