Housing Report | September

h1

Housing for September remained solid as the third quarter came to a close. Homes for sale sold in about 59 days, which is a 10.6% decrease over the same time last year. With so little inventory, buyers made quick decisions in order to secure a home purchase.

The pending and closed sales activity slowed down a little. Pending sales saw a decrease of 2.2%, and closed sales were up 4.5%. Sellers received 96.3% of the original list price, which is a .9% increase over the same time period in 2015.

The median sales price jumped 7.2% to $209,000, while the average sales price rose 4.3% to $244,773. The median sales price is the midpoint, indicating as many transactions above as below the stated price.

“The inventory dip is common for the September market,” said Chris Galler, CEO of the Minnesota REALTORS®. “There are still buyers out there, but not as many houses on the market with kids back in school.”

h2

Download the Minnesota Housing Report HERE

h3

h4

h5

The Minnesota REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.

August Housing Report

h1

In Minnesota, the August housing numbers continued to stay strong and keep REALTORS® busy during the last month of summer.

The pending and closed sales numbers continued to increase 6.7% and 9.0% respectively, which is representative of the positive early summer activity that we saw statewide. Sellers received 96.7% of the original list price and sold their homes in about 55 days. This is down 11.3% over the same time period in 2015.

The median sales price jumped 8.0% to $215,000, while the average sales price rose 6.2% to $252,329. The median sales price is the midpoint, indicating as many transactions above as below the stated price.

Inventory remains to be a problem and is still sitting at 16.4% less than the same time last year.

“There are still buyers in the marketplace taking advantage of the low interest rates that are still available,” said Chris Galler, CEO of the Minnesota REALTORS®. “Minnesota REALTORS® continue to be busy as we enter the fall market.”

h2

h3

h4

h5

The Minnesota REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.

JULY HOUSING MARKET

h11

h22

During July, typically the busiest buying and selling time in Minnesota, there were less homes for those looking to buy. With only 10,889 new listings, a 7.9% decrease over the same time last year; buyers had 28,401 properties available statewide to choose from. In July 2015, there were over 33,000 homes available.

The lack of inventory and competitive nature of the market is having an effect on the sales prices as well. The median sales price in July was at $215,900 – an 8% increase. The average sales price was up 4.3% statewide to $249,353.

With the lack of inventory, homes are selling quickly. Homes are selling in less than two months – approximately 55 days – which is a 12.7% decrease over July 2015. Buyers are forced to make quick decisions, sometimes offering more than the list price in order to secure the purchase.

“With less homes available we are seeing the closed and pending sales numbers decrease as we move through the summer months,” said Chris Galler, CEO of the Minnesota REALTORS®. “However, prices are going up due to the competitive nature of the marketplace.”

Download the Minnesota Housing Report HERE

h33

h44

h55

The Minnesota REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INVENTORY & LISTINGS CONTINUED TO BE LOW IN APRIL

1

The story was still lack of listings for the month of April throughout the state. New listings were down 2.7% during April to 12,897 units over the same time last year. There were 25,737 home for sale though April, which is 14.4% less than April of 2015.

With the low inventory, homes are selling faster, and many with multiple offers. Homes are selling in approximately two months, which is a 12% decline over last April. With the multiple offers sometimes driving the prices up – the median and average sales prices were on the rise.

The median sales price jumped 7.2% to $209,000 while the average sales price rose 5.9% to $242,504. The median sales price is the midpoint, indicating as many transactions above as below the stated price.

Closed sales were up in April as properties that were purchased in early 2016 were finalized. Pending sales took a dip to -.9%, which is an indication of the lack of inventory and buyers making offers.

“The low inventory keeps the sellers in control when it comes to the marketplace,” said Chris Galler, CEO of the Minnesota REALTORS®. “Buyers have to act quickly in order to get the house they want.”

Download the April Minnesota Housing Report HERE

2

3

4

The Minnesota REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.

 

THE UNBALANCED HOUSING MARKET

Some interesting notes about today’s housing market based on REAL Trends research.

By Steve Murray, publisher

The homeownership rate for Generation X and the Millennials is 6 to 8 percent below historical norms according to several sources;

The affordability rate and availability of inventory at the entry level of the housing market are worse than most brokers ever recall seeing in their careers;

There are over 14 million scattered, single-family residences owned by private investors and less than 5 percent of these are owned by institutional investors. Most are owned by those who own one to four units. An additional 7.7 million units of two- to four-family dwellings are also owned mostly by private investors;

At the recent National Association of Residential Property Management conference (over 600 were present), the consensus was that investors are in no mood to sell their investment properties. Rents are strong, returns are positive, and there is the question of what to do with the funds when one sells-money market funds at less than 1 percent don’t look all that interesting;

If millions of young families can’t find affordable homes to buy and if investors are holding millions of these properties, then what happens to the move-up market that drives all markets above? Recent data suggests that new households are being formed at an annual rate of approximately 1.2 million per year (JCHS Harvard), yet builders are only constructing 500,000 to 600,000 new single-family homes per year. With investors holding millions of entry-level homes and builders mostly focusing on mid-level homes, where will the inventory come from that enable young households to get on the housing ladder?

And, should millions of these young households not get on the ladder, where will the move-up demand come from? We hear from brokerage leaders across the country that their markets are more difficult than ever before. Multiple offer situations are confounding sales associates and managers alike. Pricing has become a guessing game based on who will show up with an all-cash, no-contingency offer.

Fundamentally cheap money is at the heart of this problem. Historically low interest rates and plentiful mortgage availability fire up demand. Historically high land, permitting and building costs, and the huge demand for investor-owned, single-family homes drive down supply. Lastly, an economy where asset values in housing have been going up at double or triple the rate of the growth in household income historically sets up the housing market for a slowdown, which may be what is needed to help this market get back into balance. ^

This article originally appeared in the June 2016 issue of the REAL Trends Newsletter is reprinted with permission of REAL Trends, Inc. Copyright 2016

The Minnesota REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.

2016 Starts with an Inventory Decline

New homes on the market in January were down 7.7% over 2015. This is about 500 fewer homes available to potential homebuyers. With the lower number of listings, we could see a slowdown in sales as we move through the remaining winter months which are typically a quieter time for our real estate market.

The pending sales were only up 1.6% to 4,284 units over last year. However, closed sales were up 16.5% over January 2015. This is reflective of all of the positive activity we saw in November and December. That number may slow down since the pending sales are running a little softer in January.

The median sales price jumped 8.2% to $188,00, while the average sales price rose 6% to $228,585. The median sales price is the midpoint, indicating as many transactions above as below the stated price.

Even in the traditionally cold, slow real estate month after the holidays, sellers were able to put a sold sign in their yard in 79 days. This is a 12.2% decrease, down from 90 days last year.

Minnesota REALTORS® are reporting strong market activity,” said Chris Galler, CEO of the Minnesota REALTORS®. “There are still buyers out there looking inventory as we state the new year.

Download the January 2016 Minnesota Housing Report HERE

Pending Sales

Closed Sales

Median Sales

Find more information on the real estate industry in the

MN REALTORS® March REsource Magazine.

Carrie
Carrie Andersen

Vice President, Member Services

The Minnesota REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.

Why it Pays to Hire a REALTOR

Hiring a REALTOR instead of doing it yourself can save you stress and time.

It may seem that homes are selling really fast in your neighborhood these days. So fast, in fact, that you are tempted to just stick a “FOR SALE” sign in your yard and handle the selling of your home yourself. Before you go ahead and do that, consider why it pays to hire a REALTOR vs doing it yourself. You just might be surprised how much time and work it takes to sell a home.

Education and Experience

Real estate agents have the background necessary to price, market and sell your home in a timely fashion. If they are part of the National Association of REALTORS , they also have extra education to meet the association’s high standards and code of ethics. This education and training means you have a highly skilled professional working on your behalf to get your house sold.Hire a Realtor vs doing it yourself

Market Pros

Not only do REALTORS understand the current market climate, they also understand the nuances from one neighborhood to the next and how that might affect price, competition and time on the market.

Networking

Agents know people who know people…who might be in the market for a house just like yours. They also have access to new house listings days before they hit the MLS. Those precious days can mean a jump start in finding or selling a home.Read More »