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.
Tuesday, December 18, 2007
Weekly Market Activity Report
The Twin Cities housing market is well into its annual winter holiday pause. New listings have been minimal, yet total inventory of homes for sale remains at record levels and the number of sellers continues to far outweigh the number of buyers. Conservative lending standards and decreased consumer confidence seem to be keeping home buyers away despite low mortgage rates, motivated sellers, improved housing affordability and great housing stock.
Over the last three months, newly signed purchase agreements have declined by 20.0 percent from the same period in 2006 and 34.3 percent since 2005. Meanwhile, new listings have declined by only 1.8 percent. The number of homes for sale has dropped 5,000 units in the last 12 weeks but remains 12.9 percent higher than this time last year.
The forecast calls for improved buyer activity, but it will likely take more than a year of gradual increases before comparisons to today's buying market are quantifiable. MAR is creating a 2007 summary and 2008 outlook of the Twin Cities housing market as part of our Residential Real Estate Summit to be held on Wednesday, January 16, from 8:00 a.m. to noon at the Earle Brown Heritage Center, 6155 Earle Brown Drive, Brooklyn Center.
Over the last three months, newly signed purchase agreements have declined by 20.0 percent from the same period in 2006 and 34.3 percent since 2005. Meanwhile, new listings have declined by only 1.8 percent. The number of homes for sale has dropped 5,000 units in the last 12 weeks but remains 12.9 percent higher than this time last year.
The forecast calls for improved buyer activity, but it will likely take more than a year of gradual increases before comparisons to today's buying market are quantifiable. MAR is creating a 2007 summary and 2008 outlook of the Twin Cities housing market as part of our Residential Real Estate Summit to be held on Wednesday, January 16, from 8:00 a.m. to noon at the Earle Brown Heritage Center, 6155 Earle Brown Drive, Brooklyn Center.
Monday, December 10, 2007
Weekly Market Activity Report
Home sales perked up for the week ending December 1, as buyers returned following their annual football-and-turkey Thanksgiving holiday. While the number of newly signed purchase agreements (pending sales) grew to 533, it was still behind the same week last year by 10.6 percent. The total inventory of homes for sale continues its seasonal drop, with 4,000 fewer units on the market now compared to eight weeks ago.
This week's edition of the MAAR Weekly Market Activity Report features updated figures for several key metrics:
Average Days on Market Until Sale increased slightly to 148, a growth of 12.4 percent from one year ago. This figure should continue to grow through December before dropping in the first part of 2008 as more buyers return to the market.
The Percent of Original List Price Received at Sale dipped to 92.4 percent, indicating that seller willingness to negotiate continues to grow.
Mortgage Rates for the Twin Cities region fell slightly again to 6.2, which is having dramatic and positive effects on affordability.
The Housing Affordability Index (HAI) increased to 141 due to falling mortgage rates and home prices. This is the highest HAI mark since February 2005 and, if sustained, bodes well for the long-term health of our market.
Months Supply of Inventory decreased to 9.3 months, as seasonal declines in the number of homes for sale temporarily restrict inventory choice during the holiday season.
This week's edition of the MAAR Weekly Market Activity Report features updated figures for several key metrics:
Average Days on Market Until Sale increased slightly to 148, a growth of 12.4 percent from one year ago. This figure should continue to grow through December before dropping in the first part of 2008 as more buyers return to the market.
The Percent of Original List Price Received at Sale dipped to 92.4 percent, indicating that seller willingness to negotiate continues to grow.
Mortgage Rates for the Twin Cities region fell slightly again to 6.2, which is having dramatic and positive effects on affordability.
The Housing Affordability Index (HAI) increased to 141 due to falling mortgage rates and home prices. This is the highest HAI mark since February 2005 and, if sustained, bodes well for the long-term health of our market.
Months Supply of Inventory decreased to 9.3 months, as seasonal declines in the number of homes for sale temporarily restrict inventory choice during the holiday season.
Monday, December 3, 2007
Weekly Market Activity Report
As expected, we are continuing to see a decline in home sales in the Twin Cities housing market. For the week ending November 24, there were 329 newly signed purchase agreements (pending sales), a decline of 32.2 percent from the same week last year. The severity of this sudden decline is abnormal enough to imply a statistical fluke caused by a small sample size and the vagaries of a major holiday week. How the market performs next week will provide a good indicator of its true direction.
This week's edition of the Weekly Market Activity Report features an updated Supply-Demand Ratio (SDR) for 2007. The figure increased to 13.44, which means that there are 13.44 homes on the market for every buyer in the month of December, an increase of 34.1 percent from last December. The SDR rises each year in the final months due to the dramatic decline in holiday season home buyers. [where: 55405]
This week's edition of the Weekly Market Activity Report features an updated Supply-Demand Ratio (SDR) for 2007. The figure increased to 13.44, which means that there are 13.44 homes on the market for every buyer in the month of December, an increase of 34.1 percent from last December. The SDR rises each year in the final months due to the dramatic decline in holiday season home buyers. [where: 55405]
Tuesday, November 27, 2007
Weekly Market Activity Report
Despite recent favorable drops in mortgage rates and improvement in housing affordability, buyer activity remains slow in the Twin Cities housing market. For the week ending November 17, there were 545 new purchase agreements signed, down 17.7percent from the same week in 2006. As we enter the holiday season, sellers continue their annual pause, as the number of new listings on the market and the total number of homes for sale have been in a general seasonal decline for more than eight weeks. [where: 55405]
Wednesday, November 14, 2007
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]
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]
Monday, November 5, 2007
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]
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]
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