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The Twin Cities housing market has found itself in a bit of a holding pattern in recent months, and July is no exception. The $175,000 median sales price was a 2.3 percent increase over July 2009. Pending sales in July were down 37.6 percent compared to last year, which is certainly less than ideal but expected. Due to weakened buyer demand, inventory grew modestly to 27,249 active listings, an increase of 5.4 percent over last year.

 

Demand has stabilized and should slowly return in the coming months. We hope that it returns to the market before prices have a chance to respond to the growing inventory.

 

Traditional sellers enjoyed a 5.0 percent price increase to $222,500, foreclosure prices remained flat at $119,000 and short sales posted a 3.5 percent price gain to $147,000. The traditional and foreclosure submarkets had a significant decline in pending sales, while short sales actually had a small increase.

There were 3,226 signed purchase agreements in July, a decrease of 1,948 contracts from last July. Seller activity also slowed, with 6,926 new properties coming onto the market.

 

 

 

All active listings experienced a minor spike. The supply-demand ratio increased 63.5 percent to 8.64, primarily due to declining demand and not a surplus of new product. This means that there are about 8.6 homes available per buyer for August.

 

Although the tax credit ended over three months ago, its negative externalities are finally beginning to pass. March and April enjoyed a big boost in sales performance at the cost of May, June, July, and most likely several additional months.

 

The economy is currently driving the housing market and not vice versa. The housing sector once generated corresponding construction, manufacturing and other jobs which in turn fueled economic growth. That hasn't been the case of late.

For the week ending July 31, New Listings in the Twin Cities region were down 4.3 percent from last year, with 1,566 new properties coming onto the market. Pending Sales were down 34.3 percent from a year ago, as 651 purchase agreements were signed.

Over the last three months, there have been 13.4 fewer new listings than there were during the same period a year ago and 38.7 percent fewer pendings. This means increasing inventory. There were 27,627 Active Listings for Sale as of August 9, up 6.6 percent from the same point in 2009.

The growth in inventory, combined with slowed sales demand, means that the number of homes available per buyer in August has jumped to 8.64, up dramatically from the mark of 5.28 seen a year ago.

Click here for the the full Weekly Market Activity Report

Whether May or June or July, we're finding it difficult to report anything new to you for the warm weather months of 2010. Week-in and week-out, we're showing a recurring pattern of behavior in the Twin Cities housing market, and the week ending July 24 isn't much different. Pending Sales are at 628 for the week, down 37.8 percent compared to last year, and Active Listings for Sale are at 27,661, up 5.4 percent.
 
These percentage changes represent a bit of a holding pattern. In fact, we've been here since the expiration of the tax credit. There was a minor bump in Active Listings but it wasn't sufficient to convince us that we're heading toward another oversupply situation.
 
Days on Market and Months Supply of Inventory continue to indicate a favorable market for home buyers. But with interest rates remaining at historic lows, there appears to be no sense of urgency. We may see a minor kerfuffle in the market before the school year begins, but 1,000-plus pendings per week in August doesn't seem likely, let alone 800.

Click here for the full Weekly Market Activity Report

It’s been almost 3 months since the expiration of the federal home buyer tax credit and the market appears to have settled into something of a rhythm. With the dust settling, pending sales have become mostly fixed in the 500-to-600 per week range for the past 9 weeks.

While the dramatic drop from a year ago is certainly not positive, demand is at least holding relatively steady for the time being. The 626 purchase agreements signed for the week ending July 17 were 39.7 percent behind a year ago.For the same reporting week there were 1,618 new listings in the Twin Cities, down 10.0 percent from a year ago.

Inventory is rising due to slower demand. The 27,350 homes currently available for sale represent an increase of 4.8 percent from last year.

Click here for the full Weekly Market Activity Report

The Minneapolis Area Association of REALTORS® (MAAR) is making housing market data easier than ever to explore and dissect. Welcome to “The Thing,” a new interactive market analytics tool for local real estate.

Click here

 

 

Where has the Twin Cities real estate market been and where is it heading? This monthly summary provides an overview of current trends and projections for future activity. Narrated by Brad Fisher (2010 President of the Minneapolis Area Association of REALTORS®), audio recorded by Zach Foty and video produced by Chelsie Foty. Click here to view in a separate window or just check the embedded clip below:

Where has the Twin Cities real estate market been and where is it heading? This monthly summary provides an overview of current trends and projections for future activity. Narrated by Brad Fisher (2010 President of the Minneapolis Area Association of REALTORS®), audio recorded by Zach Foty and video produced by Chelsie Foty. Click here to view in a separate window or just check the embedded clip below:

Although June saw a 4.9 percent year-over-year median sales price increase from $173,500 to $182,000 in the Twin Cities metro, low demand overshadowed those gains. The sales price reflects the mix of homes that were selling—many of which were closings from credit-motivated first-time homebuyers. The big shift occurred in the pending sales metric, which had a 40.4 percent year-over-year decline from June 2009. The previous record high was a 27.6 percent year-over-year pending sales declines and it occurred 4 years ago.

The price gains registered across the board, but the foreclosure category had the greatest price increase of 8.7 percent. Traditional and short sales saw year-over-year price gains of 3.6 percent and 3.1 percent, respectively. Looking a bit closer, the median sales price for traditional homes was $217,000, foreclosures were $125,000, and short sales were $152,000.

The traditional sub-market (non-foreclosure, and non-short sale) had a 41.5 percent pending sales decline while foreclosures had a 40.7 percent decline. Short Sales actually had an 11.0 percent increase in pending sales but comprised less than 1/5th of the market.

There were 3,465 signed purchase agreements in June, a decrease of 2,347 contracts from last June. Seller activity also slowed considerably, with 7,278 new properties coming onto the market. In terms of YTD figures, pending sales only decreased 8.5 percent while new listings posted a 2.1 percent increase.

Active listings remained fairly constant, with inventory checking in at 26,665 for June, a minor 1.8 percent increase over June 2009. The supply-demand ratio increased 46.9 percent to 7.44, primarily due to declining demand. This means that there are about 7.4 homes available per buyer for July.

The effect of the tax credit is becoming clearer with time. March and April enjoyed record-breaking performance at the cost of June and July (and possibly continuing into the future). In other words, the credit shifted would-be summer buyers forward. There aren’t enough buyers left to sustain March and April sales figures. A short-term demand spike was created at the expense of long-term market stability.

It is somewhat puzzling that demand is this flimsy considering interest rates are at 50-year lows. Until macro-economic indicators such as unemployment and job churn improve, the housing market isn’t likely to make large strides.

Although June saw a 4.9 percent year-over-year median sales price increase from $173,500 to $182,000 in the Twin Cities metro, low demand overshadowed those gains. The sales price reflects the mix of homes that were selling—many of which were closings from credit-motivated first-time homebuyers. The big shift occurred in the pending sales metric, which had a 40.4 percent year-over-year decline from June 2009. The previous record high was a 27.6 percent year-over-year pending sales declines and it occurred 4 years ago.

The price gains registered across the board, but the foreclosure category had the greatest price increase of 8.7 percent. Traditional and short sales saw year-over-year price gains of 3.6 percent and 3.1 percent, respectively. Looking a bit closer, the median sales price for traditional homes was $217,000, foreclosures were $125,000, and short sales were $152,000.

The traditional sub-market (non-foreclosure, and non-short sale) had a 41.5 percent pending sales decline while foreclosures had a 40.7 percent decline. Short Sales actually had an 11.0 percent increase in pending sales but comprised less than 1/5th of the market.

There were 3,465 signed purchase agreements in June, a decrease of 2,347 contracts from last June. Seller activity also slowed considerably, with 7,278 new properties coming onto the market. In terms of YTD figures, pending sales only decreased 8.5 percent while new listings posted a 2.1 percent increase.

Active listings remained fairly constant, with inventory checking in at 26,665 for June, a minor 1.8 percent increase over June 2009. The supply-demand ratio increased 46.9 percent to 7.44, primarily due to declining demand. This means that there are about 7.4 homes available per buyer for July.

The effect of the tax credit is becoming clearer with time. March and April enjoyed record-breaking performance at the cost of June and July (and possibly continuing into the future). In other words, the credit shifted would-be summer buyers forward. There aren’t enough buyers left to sustain March and April sales figures. A short-term demand spike was created at the expense of long-term market stability.

It is somewhat puzzling that demand is this flimsy considering interest rates are at 50-year lows. Until macro-economic indicators such as unemployment and job churn improve, the housing market isn’t likely to make large strides.

Although June saw a 4.9 percent year-over-year median sales price increase from $173,500 to $182,000 in the Twin Cities metro, low demand overshadowed those gains. The sales price reflects the mix of homes that were selling—many of which were closings from credit-motivated first-time homebuyers. The big shift occurred in the pending sales metric, which had a 40.4 percent year-over-year decline from June 2009. The previous record high was a 27.6 percent year-over-year pending sales declines and it occurred 4 years ago.

The price gains registered across the board, but the foreclosure category had the greatest price increase of 8.7 percent. Traditional and short sales saw year-over-year price gains of 3.6 percent and 3.1 percent, respectively. Looking a bit closer, the median sales price for traditional homes was $217,000, foreclosures were $125,000, and short sales were $152,000.

The traditional sub-market (non-foreclosure, and non-short sale) had a 41.5 percent pending sales decline while foreclosures had a 40.7 percent decline. Short Sales actually had an 11.0 percent increase in pending sales but comprised less than 1/5th of the market.

There were 3,465 signed purchase agreements in June, a decrease of 2,347 contracts from last June. Seller activity also slowed considerably, with 7,278 new properties coming onto the market. In terms of YTD figures, pending sales only decreased 8.5 percent while new listings posted a 2.1 percent increase.

Active listings remained fairly constant, with inventory checking in at 26,665 for June, a minor 1.8 percent increase over June 2009. The supply-demand ratio increased 46.9 percent to 7.44, primarily due to declining demand. This means that there are about 7.4 homes available per buyer for July.

The effect of the tax credit is becoming clearer with time. March and April enjoyed record-breaking performance at the cost of June and July (and possibly continuing into the future). In other words, the credit shifted would-be summer buyers forward. There aren’t enough buyers left to sustain March and April sales figures. A short-term demand spike was created at the expense of long-term market stability.

It is somewhat puzzling that demand is this flimsy considering interest rates are at 50-year lows. Until macro-economic indicators such as unemployment and job churn improve, the housing market isn’t likely to make large strides.