Metro Homes Market

651-770-5000

Mortgage Rates Tick Up

by Leave a Comment

November 14, 2019
The modest uptick in mortgage rates over the last two months reflects declining recession fears and a more sanguine outlook for the global economy. Due to the improved economic outlook, purchase mortgage applications rose fifteen percent over the same week a year ago, the second highest weekly increase in the last two years. Given the important role residential real estate plays in the economy, the steady improvement of the housing market is a reassuring sign that the economy is on solid ground heading into next year.

Information provided by Freddie Mac.

Mortgage Rates Tick Up

by Leave a Comment

November 14, 2019
The modest uptick in mortgage rates over the last two months reflects declining recession fears and a more sanguine outlook for the global economy. Due to the improved economic outlook, purchase mortgage applications rose fifteen percent over the same week a year ago, the second highest weekly increase in the last two years. Given the important role residential real estate plays in the economy, the steady improvement of the housing market is a reassuring sign that the economy is on solid ground heading into next year.

Information provided by Freddie Mac.

Weekly Market Report

by


For Week Ending November 2, 2019

This week the Federal Reserve reduced its benchmark rate for the third time this year. This action was widely anticipated by the market and mortgage rates rose for the third consecutive week. Despite the recent rise, rates still remain approximately one percent lower than a year ago, which has a substantial effect on buying power. Also this week, a TransUnion analysis predicts a surge of additional first-time homebuyers will enter the market between 2020 and 2022, climbing from 7.6 million buyers in the 2016-2018 period to 8.3-9.2 million in the 2020-2022 period.

In the Twin Cities region, for the week ending November 2:

  • New Listings increased 9.2% to 1,223
  • Pending Sales increased 3.3% to 1,043
  • Inventory decreased 5.5% to 11,917

For the month of September:

  • Median Sales Price increased 6.8% to $279,900
  • Days on Market increased 2.4% to 43
  • Percent of Original List Price Received increased 0.1% to 98.5%
  • Months Supply of Homes For Sale decreased 3.7% to 2.6

All comparisons are to 2018

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Weekly Market Report

by


For Week Ending October 26, 2019

A new Census report this week announced that new construction home sales nationwide decreased slightly to a seasonally adjusted rate of 701,000 units, which is 15.5% higher than a year ago. Also in the announcement was news that the median sales price of new construction homes declined to $299,440 nationally, down 8% from a year ago. This decline was due to an increase in the availability of new homes at lower price points and is a welcomed change in what has been an underserved segment of the market.

In the Twin Cities region, for the week ending October 26:

  • New Listings decreased 0.4% to 1,239
  • Pending Sales increased 9.1% to 1,094
  • Inventory decreased 4.9% to 12,212

For the month of September:

  • Median Sales Price increased 6.8% to $279,700
  • Days on Market increased 2.4% to 43
  • Percent of Original List Price Received increased 0.1% to 98.5%
  • Months Supply of Homes For Sale decreased 3.7% to 2.6

All comparisons are to 2018

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Weekly Market Report

by

For Week Ending October 19, 2019

While the U.S. Commerce Department reported that total housing starts dropped 9.4% month over month in September, that drop was focused on the apartment and condo segment while single-family housing starts actually rose .3%. Throughout much of the country, the continued low level of housing inventory is constraining sales activity from where it would be in a balanced market. Active inventory is in its normal seasonal decline, leaving buyers with fewer choices as we move towards the end of the year.

In the Twin Cities region, for the week ending October 19:

  • New Listings decreased 6.1% to 1,309
  • Pending Sales increased 6.5% to 1,138
  • Inventory decreased 3.7% to 12,440

For the month of September:

  • Median Sales Price increased 6.6% to $279,250
  • Days on Market increased 2.4% to 43
  • Percent of Original List Price Received increased 0.1% to 98.5%
  • Months Supply of Homes For Sale decreased 3.7% to 2.6

All comparisons are to 2018

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Weekly Market Report

by

For Week Ending October 12, 2019

In the last month, mortgage rates have fallen to their lowest monthly average in more than three years, and now Fannie Mae is predicting that continued low rates, and possibly lower rates, are expected in 2020. These historically low mortgage rates have and will continue to support buyer demand and may create additional lift to home prices as lower financing costs give buyers the ability to offer more to secure their dream home.

In the Twin Cities region, for the week ending October 12:

  • New Listings increased 7.3% to 1,496
  • Pending Sales decreased 5.9% to 1,036
  • Inventory decreased 4.4% to 12,457

For the month of September:

  • Median Sales Price increased 6.5% to $279,000
  • Days on Market increased 2.4% to 43
  • Percent of Original List Price Received increased 0.1% to 98.5%
  • Months Supply of Homes For Sale decreased 3.7% to 2.6

All comparisons are to 2018

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Sales, prices still rising despite some changes this year

by

The latest numbers for Twin Cities residential real estate show a stable market with some ongoing signs of transition. Prices are still rising, supply is still tight, and demand has recovered even while market times have lengthened. Even though more buyers are closing on homes, the urgency has subsided somewhat. Days on market rose 2.4 percent from last September, marking the fifth year-over-year increase in the last seven months. Market times remain swift despite modest increases. Sales rose 3.4 percent and the median sales price increased 6.6 percent to $279,250. Pending sales—a measure of signed contracts and future demand—rose 2.9 percent. Both pending and closed sales are down slightly for the year so far, but that may change. New listings were up 2.5 percent, helping some buyers take advantage of historically low rates. Sellers have been accepting a slightly lower share of their list price compared to the year prior for seven of the last eight months—with September bucking that trend. This, along with other indicators, suggests the market is rebalancing in a way that could benefit buyers.

The number of active listings for sale is up over the last 12 months and for most of 2019. Even so, the market remains tight—particularly for first-time buyers and downsizers competing in the under $300,000 segment where multiple offers and homes selling for over list price remain commonplace. Despite the demand, builders struggle to replenish inventory in that undersupplied segment due to high land and material costs combined with a significant labor shortage and tricky regulations. The shortage of affordable homes has led to an increase in remodeling as people are staying in their homes longer. It’s challenging to find comparable home at a similar payment in the desired location. With just 2.5 months of supply, the Twin Cities is still significantly undersupplied.


September 2019 by the Numbers (compared to a year ago)

  • Sellers listed 7,041 properties on the market, a 2.5 percent increase from last September
  • Buyers closed on 5,358 homes, a 3.4 percent increase
  • Inventory levels decreased 5.6 percent from last September to 12,478 units
  • Months Supply of Inventory was down 7.4 percent to 5 months
  • The Median Sales Price rose 6.6 percent to $279,250
  • Cumulative Days on Market rose 2.4 percent to 43 days, on average (median of 22)
  • Changes in Sales activity varied by market segment
    • Single family sales rose 5.5 percent; condo sales increased 1.4 percent; townhome sales fell 0.5 percent
    • Traditional sales increased 4.8 percent; foreclosure sales dropped 21.1 percent; short sales fell 55.6 percent
    • Previously owned sales were up 4.4 percent; new construction sales climbed 2.6 percent

Quotables

“Attractive interest rates have unleashed some of the pent-up demand from earlier this year,” said Todd Urbanski, President of Minneapolis Area REALTORS®. “But each price point, product type and area is unique.”

“Buyers are still very much motivated despite some challenges,” said Linda Rogers, President-Elect of Minneapolis Area REALTORS®. “It really shows the resilience of our region and the value of homeownership.”
From The Skinny Blog.

Weekly Market Report

by

For Week Ending October 5, 2019

With the 30-year fixed-rate mortgage approximately one percentage point lower than a year ago according to Freddie Mac, buyers are actively taking advantage. Home refinancing is also going strong and overall mortgage demand, which includes purchase mortgages as well as refinancings, is up 50% from a year ago. Lower mortgage rates help maintain housing affordability in the face of price appreciation across much of the country.

In the Twin Cities region, for the week ending October 5:

  • New Listings decreased 2.7% to 1,517
  • Pending Sales increased 1.5% to 1,180
  • Inventory decreased 3.4% to 12,597

For the month of August:

  • Median Sales Price increased 7.1% to $286,900
  • Days on Market increased 2.5% to 41
  • Percent of Original List Price Received decreased 0.2% to 99.0%
  • Months Supply of Homes For Sale remained flat at 2.6

All comparisons are to 2018

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.

Weekly Market Report

by

For Week Ending September 28, 2019

The Commerce Department reported sales of newly built homes nationwide have surged 18% compared to a year ago and housing starts and building permits reached a 12-year high in August. This surge in both sales and new construction shows strong market confidence by both buyers and builders. However, further increases in new construction starts are still required to meet demand and bring more balance.

In the Twin Cities region, for the week ending September 28:

  • New Listings decreased 3.3% to 1,546
  • Pending Sales decreased 3.0% to 1,112
  • Inventory decreased 3.6% to 12,716

For the month of August:

  • Median Sales Price increased 7.0% to $286,875
  • Days on Market increased 2.5% to 41
  • Percent of Original List Price Received decreased 0.2% to 99.0%
  • Months Supply of Homes For Sale remained flat at 2.6

All comparisons are to 2018

Click here for the full Weekly Market Activity Report. From MAAR Market Data News.