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.

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.

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.

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.

Ground Hogs Day does not resemble the market.

Weekly Market Activity Report
As we celebrate Groundhog Day, new listing numbers continue consistently at a slower pace than 2008. New listings for the week ending January 24 were 10.3 percent less than this same week last year. Total active listings are significantly down, reflecting the steady decline of supply that occurred over the previous 12 months. There are currently 24,993 active listings on the market, down about 11 percent and 3,000 units since this time last year.
There is additional good news. Pending sales are showing an increase of 8.1 percent compared to one year ago. It should be noted, however, that much of this increase is foreclosures and short sales.
The Supply-Demand Ratio (SDR) for February is projected to be 7.67, painting a picture of falling supply in further detail. The SDR reflects the number of homes for sale per buyer in the Twin Cities.
These positive signs are methodically leading us on a journey toward a healthier regional real estate market and not on an endless repeat of sameness like in the movie named for today's holiday.

Housing market, Year-End, News Release for 2008

After two-plus years of a faltering market, a recent upswing in Twin Cities homes sales during the second half of 2008 is cause for some measured optimism heading into 2009. In the Twin Cities 13-county metro area, total pending sales for 2008 ended at 44,067, up 1.2 percent from 2007. This is the first year-over-year increase in pending sales since 2004. There were 38,746 closed home sales in 2008, down only 3.5 percent from 2007.
In the second half of the year, sales picked up momentum and haven't let up since due to tumbling mortgage rates and increased affordability. Since July, there have been 15.7 percent more pending sales than there were during the same time period last year, and the most recent month saw a year-over-year increase of almost 30 percent.
Home prices continued to decline, as expected. The overall 2008 median sales price was $195,000, down 13.3 percent from last year's mark of $225,000.
Reasons for this decline can be found by dissecting two unique segments in today's housing market: lender-mediated and traditional. In 2008, the median sales price of lender-mediated foreclosure and short sale properties was $145,000, a drop of 13.4 percent from 2007. The median sales price for traditional properties was $223,000, which was a much quieter decline of 4.1 percent from last year. In all of 2008, 31.7 percent of closed sales in the region were lender-mediated, up from 10.4 percent in 2007.
The number of new listings on the market during 2008 decreased by 10.9 percent compared to last year, a drop of over 10,000 listings from last year and the lowest showing since 2003. This has helped stem the tide of oversupply our market has been experiencing in recent years.
The number of new foreclosure and short sale listings in the fourth quarter of 2008 was actually 4.3 percent lower than the third quarter, which is the first downward quarterly movement in new lender-mediated listings since 2003.

Hello 2009

The New Year rang in with the normal post-holiday increase in new listings, but listings are still down from the same week last year. Pending sales for the week ending January 3 showed a strong increase during the year-end transition, rising nearly 40 percent compared to last year. Over the last three months of the year, pending sales were 18 percent higher than last year. Local housing inventory has reached its annual low point but looks to rebound in the opening months of 2009.
This week's edition of the MAAR Weekly Market Activity Report features updated figures from several important metrics:
• In December, Days on Market Until Sale dropped 6.3 percent compared to last year. The market appears to have reached a plateau in the amount of time needed to sell a house, and this welcome decline certainly could continue into the next year.
• Percent of Original List Price Received at Sale closed at 90.0 in December, 1.3 percent lower than last year.
• The new Housing Affordability Index (HAI) for January is extremely positive. Last month we stated that the HAI of 180 was the highest we had ever recorded. Now it's even higher, jumping an additional 12 points to 192. The rise reflects the help that interest rates and softer prices have given to the market. (Note: The decline in prices is driven by the significant amount of lender-mediated home sales and its benefit is not equal to all buyers.)

The housing market is going into hibernation mode.

As fall turns into winter—and winter turns dark and cold—activity in the Twin Cities housing market has entered its annual hibernation. On a weekly basis, new listings, total inventory and sales are all declining as consumers batten down the hatches and prepare for the holidays. Relative to this time last year, however, activity is stronger. For the week ending December 6, there were 597 signed purchase agreements (pending sales), which is up 27.6 percent over the same week last year. Roughly half of these sales—54.7 percent—were lender-mediated foreclosures or short sales.

On the supply side, new listings were relatively flat, up only 0.7 percent for the same time period comparison. The total supply of homes for sale currently sits at 27,035, down 8.2 percent compared to this time last year. Expect the decline in overall supply to continue into January. At the same time, expect the lender-mediated market share of that supply to increase.

Most homes sales are lender mediated (foreclosures)

Weekly Market Activity Report

For 19 weeks out of the past 20, pending sales have been higher than during the equivalent week in 2007. There were 649 pending sales for the week ending November 15, up a healthy 19.1 percent from the same week last year. Of these newly signed purchase agreements, 53.5 percent were for lender-mediated foreclosure or short sale properties and 41.9 percent were listed at $150,000 or below. Over the last three months, there have been more than 25 percent more pending sales than during the same time in 2007. A healthy portion of these sales have been in the lower price ranges.

On the supply side, the inventory of homes for sale currently sits at 29,365, which is 9.0 percent lower than this time last year. New listings for the most recent reporting week were 9.0 percent lower than a year ago, and only 41.7 of new listings were lender-mediated.

The fact that a much higher proportion of sales are lender-mediated (53.5 percent) compared to new listings (41.7 percent) is an indication that foreclosures and short sales are not languishing on the open market. Although we still have a ways to go, this is a hopeful sign. The sooner the lender-mediated inventory is absorbed, the sooner our market can return to a traditional recovery process.

Foreclosures are where its at.

Weekly Market Activity Report

As the fall temperature persists at near freezing levels, home sales activity remains stubbornly higher than it was a year ago, despite weakened consumer confidence and a sluggish economy. Pending sales for the week ending November 8 were 16.9 percent higher than the same week in 2007, and over the last three months have been a robust 26.6 percent higher. Lender-mediated foreclosures and short sales in the lower price ranges are driving the swing upwards; 54.4 percent of the most recent reporting week's pending sales were lender-mediated and 43.2 percent were priced under $150,000.

Supply remains down from last year but appears to have reached a plateau of sorts. We have had roughly 9 percent fewer total homes for sale than at the same point last year for the last 5 consecutive weeks. New supply coming onto the market continues to slow its velocity and will likely remain commensurate in pace with fourth-quarter 2007. A total of 41.1 percent of new listings over the past week were lender-mediated.