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.
Tuesday, February 26, 2008
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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