Twin Cities Weekly Real Estate Market Update 11/19/12

It has been a while since I have posted – things got busy with the market picking up and I was struggling balancing time between earning an income and keeping up on my blog.   I will be making an effort to keep up on the market news, even with the bright spots we are not out of the woods yet!

The Minneapolis Area Association of Realtors Weekly Market Update shows continued inventory decline.  The Twin Cities is now suffering a shortage of homes for sale.   According to MAAR, the Twin Cities is at a 3.8 Month Supply of Homes for sale which puts this in a Seller’s Market range.  Prices are nudging up as demand chases fewer and fewer home for sale.

Read Full Report from MAAR

 

 

 

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Twin Cities Weekly Real Estate Market Update 10/15/12

This week’s market update from Minneapolis Association of Realtors shows continued improvement on inventory in the Twin Cities.  I am still calling this “improvement”, however if this trend continues for too long it can become a “problem”.

In the Twin Cities region, for the week ending October 6:
• New Listings increased 2.8% to 1,301
• Pending Sales increased 33.5% to 1,049
• Inventory decreased 28.6% to 16,113

Read Full Report from MAAR

 

The real estate market has still been busy which makes it difficult for me to keep up with blog posts.  Last week I missed posting the weekly market update which contained the figures for September.  September ended with inventory at a 4 month supply.  It takes 4-5 months to build a new home (add a unit to supply).   In other words, we can build more homes!

 

 

 

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Twin Cities Weekly Real Estate Market Update 10/01/12

Minneapolis Area Association of Realtors weekly market report is out and shows continued inventory decline.   I don’t know how many different ways that can be said, but it is same old report every week – which is great!

In the Twin Cities region, for the week ending September 22:
• New Listings decreased 1.1% to 1,295
• Pending Sales increased 22.8% to 1,078
• Inventory decreased 29.4% to 16,428

Read Full Report from MAAR

In other words: There are 191 fewer homes for sale now than a week ago.  At this rate, we may see inventory drop below 16,000 by the end of October.

 

 

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Twin Cities Weekly Real Estate Market Update 9/24/12

Minneapolis Area Association of Realtors weekly report shows continued decrease in Inventory of Homes for sale in Minneapolis / St Paul, MN.

 

In the Twin Cities region, for the week ending September 15:

• New Listings increased 4.0% to 1,360
• Pending Sales increased 18.4% to 978
• Inventory decreased 29.5% to 16,479

Read Full Report from MAAR

Last week there were 128 fewer homes for sale than the week prior, I tracked this back a few weeks – you can view it as notes on the chart below.  I am trying to guess what the inventory may look like in a few weeks.  It is possible we could see the inventory dip below 16,000 within a few weeks.

Inventory is of course only half of the equation of Supply & Demand, but if there is Little Supply it only takes a modest amount of Demand to increase prices.

With QE3 pumping $40 Billion per month into the market buying mortgage-backed securities, we are likely to see lower rates and increased demand for the short-term.  In essence, the Fed is trying to re-inflate the housing bubble.   If you are in a position to take advantage of these low rates, I would.  My personal fear is what is going to happen down the road when the bills come due on the $40 Billion per month, whether the money is printed or borrowed – there may be some real pain involved later.

 

 

 

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Twin City Real Estate Market Update: Sept 17 2012

This week’s weekly market update from Minneapolis Area Association of Realtors shows the continued trend of decreasing inventory.  Pending sales are making their seasonal downward trend but remain 24.2% above a year ago.   This inventory level hasn’t been seen since 2004.

In the Twin Cities region, for the week ending September 8:

• New Listings increased 2.2% to 1,273
• Pending Sales increased 24.2% to 940
• Inventory decreased 29.6% to 16,458

Read Full Report from MAAR

 

Twin Cities Weekly Real Estate Market Update 09/10/12

Another market update from the Minneapolis Area Association of Realtors showing continued market improvement in the Twin Cities.  There are 221 fewer properties for sale from last week bringing the inventory down to 16,676.

In the Twin Cities region, for the week ending September 1:

• New Listings decreased 10.1% to 1,171
• Pending Sales increased 13.3% to 1,025
• Inventory decreased 30.0% to 16,676

For the month of August:

• Median Sales Price increased 15.5% to $179,000
• Days on Market decreased 24.1% to 107
• Percent of Original List Price Received increased 4.2% to 95.1%
• Months Supply of Inventory decreased 42.7% to 4.1

Read Full Report from MAAR

Months Supply of Inventory is down to 4.1 Months!   4 Months a very important number, it take 3-4 months to build a new house.  In other words:  the market can absorb new homes as they are built.  This low inventory is showing pressure on Median Sales price which increased to $179,000,  as well as sellers getting 95.1% of their asking price and days on market declining to 107 days.   All positive signs.

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 Read Full Report from MAAR

 

 

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Twin Cities Weekly Real Estate Market Update: Sept 04 2012

Inventory continues to decline in Minneapolis/St Paul area, Minneapolis Area Association of Realtors reports this week.

I am primarily focused on inventory, instead of pending sales or new listings.  Inventory is of course the combined result of both pending sales and new listings…  This week the Inventory is down to 16,785 homes for sale in the Twin Cities metro area.  These are inventory levels not seen since 2004.  Next weeks report from MAAR should show us the absorption rate (months supply) – this is key metric in new construction.  If it takes 3-4 months to build a new home to “add” to supply, then when the absorption rate hits under 3-4 months – you can add new homes to the supply.

In the Twin Cities region, for the week ending August 25:
• New Listings increased 1.3% to 1,282
• Pending Sales increased 19.4% to 1,027
• Inventory decreased 29.9% to 16,785

Read Full Report from MAAR

 

 

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Twin Cities Weekly Real Estate Market Update Aug 20, 2012

Minneapolis Area Association of Realtors Weekly Market Report shows continued increase in demand and more declining inventory.  This week the market dipped under 17,000 homes for sale to 16,982.  This is a mile stone in my opinion, this is inventory numbers we haven’t seen since 2004.

In the Twin Cities region, for the week ending August 11:
• New Listings increased 2.0% to 1,387
• Pending Sales increased 31.2% to 1,149
• Inventory decreased 29.6% to 16,982

Read Full Report from MAAR

What struck me in this weeks report is how the demand continues to increase, a sign we may have a very interesting Parade of Homes this Fall.  Below shows us Pending Sales are up 31.2% over last year.  If this continues through the fall, the market might get really interesting!

 

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Twin Cities Real Estate Market Update Aug 13 2012

Minneapolis Area Association of Realtors weekly update is out for week ending August 4, 2012.  Last week I was expecting that our inventory would drop below 17,000, it came in short of that by 86 homes.

In the Twin Cities region, for the week ending August 4:
• New Listings decreased 0.1% to 1,433
• Pending Sales increased 20.4% to 1,129
• Inventory decreased 29.6% to 17,085

Last week marked the end of July so the monthly figures are published in this report as well.  The inventory dropped to 4.3 months supply and Median Sales Price jumped from $178,600 to $179,900.

This fall should be interesting with this diminished inventory.  If  buyer activity remains strong, we will likely see dynamic shifts in prices – assuming the appraisers can accommodate these market changes with the new regulations they are under.

For the month of July:
• Median Sales Price increased 14.2% to $179,900
• Days on Market decreased 27.8% to 105
• Percent of Original List Price Received increased 3.6% to 95.0%
• Months Supply of Inventory decreased 43.4% to 4.3

Read Full Report from MAAR

 

 

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Twin Cities Weekly Real Estate Market Update 7/30/2012

Minneapolis Area Association of Realtor’s weekly update shows inventory about to cross another threshold.   It looks like it is possible we may dip below 17,000 homes for sale this week or sometime next week…    This is becoming significant.  With lower inventory, we will see price stabilization and it is beginning to look like we will see price increases.  (real price increases, not just median sales price.)

In the Twin Cities region, for the week ending July 21:
• New Listings increased 1.2% to 1,382
• Pending Sales increased 22.7% to 1,145
• Inventory decreased 30.7% to 17,174

Read Full Report from MAAR

17,174 Listings in inventory – only 175 sales to drop below the 17,000 mark.  Something to keep in mind out of this inventory, many of these are actually pending waiting for “3rd Party Approval” (aka Short Sales waiting for the bank to approve the sale).  So the inventory is actually lower than this figure…

 

 

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