Tuesday, June 29, 2010

Twin Cities Home Sale Market Update

The Twin Cities housing market continues to adjust to a world without a fancy tax credit. Pending sales leveled off following the slight gains seen the prior week, squatting at 645 signed contracts for the week ending June 19.

While that's steady compared to last week, it's anemic compared to last year at this time when the market posted 1,156 signed contracts. If you're keeping track of percentages, that means we're down 44.2 percent from a year ago—the sixth consecutive week of year-over-year declines exceeding 30 percent.

New listings are also down from a year ago, posting a drop of 8.4 percent from a year ago to 1,712 for the most recent reporting week. Any sort of "return to normalcy" is going to take some time.

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Monday, June 21, 2010

Twin Cities Housing Cool After Red Hot Tax Credit Sales

Pending sales in the Twin Cities housing market trended up for the first time in four weeks, but remain substantially below 2009. For the week ending June 12, there were 674 signed purchase agreements, up from the mark of 527 the prior week, but down dramatically from the mark of 1,210 seen during the same week a year ago.

This may be a sign that the drastic drops in sales seen in May and early June were simply temporary aftershock reactions to the tax-credit build up and that demand will slowly return over the course of the summer, but it’s far too early to say that with any certainty. We’ll be keeping a close eye on the numbers each week.

New listings moved upward for the same reporting week to 1,729, but remain 12.2 percent behind last year at this time. However, inventory has slowly climbed due to the decline in pending sales, currently sitting at 26,990 active listings, an increase of 1.1 percent from a year ago.

The National Association of Realtors has issued a "call to action" for Congress to step up and continue to stimulate the national housing market. The recent finding from the stimulus incentives is showing that it worked and is still needed in order to


Thursday, June 10, 2010

Minneapolis St. Paul Housing Market Update

Minneapolis Real Estate Agent Realtor s
Dan and Lisa Basil
Coldwell Banker Burnet
(612) 280-5046

June 9, 2010

As the weeks following the tax credit expiration unfold, buyer demand continues to slow. The 600 purchase agreements signed for the week ending May 29 were 34.6 percent below the previous year—the fourth consecutive week of year-over-year decline in Pending Sales.

Refreshed supply is also in decline, as New Listings posted a fifth consecutive week of year-over-year decline, landing at 1,474 for the most recent reporting week—a 5.9 percent decrease from a year ago.

Two other metrics for this week:

Days on Market – This stat continues its year-over-year downward trend, resting at 118 days for May 2010.

Percentage of Original List Price Received – This continues to grow, up 2.8 percent above last year at this time to 94.1 percent of the list price.


Friday, June 04, 2010

Tax Credit Cool Off, Summer Buying Season Ahead!

As expected, pending sales continued their post-tax credit deadline swoon in the Twin Cities housing market for the week ending May 15.

There were 830 purchase agreements signed for the week, a large drop from the mark of 1,469 seen two weeks ago during the final week of the credit. The most recent week represents a 32.8 percent decrease from the same mark last year.

New Listings are also in decline, with the 1,582 posted for the week coming in at 19.3 percent behind a year ago. The decline in new supply is helping to offset some of the decline in sales, which is serving to hold inventory relatively steady for the time being.

It remains to be seen whether the large drop in activity is a temporary post-credit blip or a harbinger of a longer-term demand “cool down.” We’ll continue to keep a hawk’s eye on the numbers in the weeks ahead.

With the summer selling season ahead, and interest rates consistently below 5% for a 30 year fixed mortgage, many buyers are still "waiting in the weeds" for the right house. As inventory shrinks, buyers are sure to grab the best of the best while the rates are low.

Dan Basil and Lisa Basil
Great Minneapolis Real Estate Agents
(612) 280-5046
Dan Basil www.danbasil.com
Lisa Basil www.lisabasil.com

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