Monday, May 17, 2010

Minnesota Real Estate May 2010 Update

The Twin Cities housing market reacted as anticipated in the week following the end of the government tax credit. For the week ending May 8, there were 1,133 Pending Sales, a 4.4% drop below last year at this time. The year-over-year decline, which was the first since March 6, was likely owing to the number of buyers that acted in advance of the end of the tax credit.
Three other important numbers:
• Housing Affordability has dropped slightly for the month of May to 202. This is a 7.8 percent decrease from last year and is a product of both rising home prices and interest rates.
• After peaking in mid-April, New Listings continue to fall, settling at 1,550 units, down 24.7 percent from the same week last year.
• Months Supply of Inventory seems to be settling as well. At 6.7 houses per buyer, this is 13 percent below last year. This, too, is an indicator of some leveling in the market between buyers and sellers.

Wednesday, May 12, 2010

Some encouraging figures

The expiration of the tax credit clearly motivated buyers to take action by April 30. Last week, there was a significant 31.2 percent jump in Pending Sales versus last year, bringing the total number of contracts written to 1,469. But for the first time this year the number of New Listings was down. A total of 1,803 of them entered the market, 11.5 percent lower than a year ago.

Some encouraging figures include a Days on Market count of 127, down 15.3 percent compared to last year, and Percent of Original List Price Received at Sale of 93.6 percent, up 4.0 percent over last year.

We expect buyer activity to continue over the coming weeks, although not with the same level of urgency due to the expired tax credits and a slight seasonal lull before we get into the heart of summer.