Filed under: Market Statistics, Selling a Home, Twin Cities Real Estate News | Tags: Cheryl Brenna Group, current home inventory, home sales, Selling Your Home, Twin Cities Metro Area
This May Very Well Be The Time To Put Your Home On The Market
The end of the first-time home buyers tax credit looms just 30 days beyond a Halloween horizon, and home sales remain strong in the lead-up to tricks and treats and the impending tax credit DEADline. For the week ending October 17, there were 954 signed purchase agreements, howling upward 54.4 percent from a year ago. Almost two-thirds of these pending sales were priced below $190,000—evidence that first-time buyers are carrying a heavy share of the activity.
The strong sales we’ve seen over the last 15 months mean that our inventory of available homes has shrunk like the heads in a witches’ brew. The 23,896 homes on the market right now represents a 21.2 percent decrease from the decidedly more scary market of 2008, and it is the lowest mark at this point in the year since 2004.
So, for those if you who are even considering if it is a good time to put your home on the market, the answer is YES due to the low inventory and the appealling low interest rates. There are buyers out there that may just very well become bewitched with your home!
The Cheryl Brenna Group has buyer’s we are working with, and unfortunately we have not been able to find them a home they love. Let the Cheryl Brenna Group guide you through the process of selling or buying a home or both. We have a genuine vested interest in each and every one of our clients. It is at least worth considering …a lifestyle change can be the beginning of a very exciting new journey…
Filed under: Market Activity Reports, Market Statistics, Twin Cities Real Estate News | Tags: Cheryl Brenna Group, Market Activity, metro area, Twin Cities Metro Area, Woodbury Real Estate News
Twin Cities Market Activity
The Labor Day fluctuations came and went, and the Twin Cities housing market is better for it. Pending sales for the week ending September 13 rose dramatically to 1,043, which is 33.5 percent above last year’s total for the same week. We must assume that a healthy chunk of this buyer activity can be attributed to first-time home buyers taking advantage of the tax credit before it expires on November 30.
New listings came in at 1,846, up 3.2 percent in a year-over-year comparison. Home sellers have recognized a window of opportunity in recent months and are listing with a little more frequency, but the overall inventory of houses for sale is still below that of the last three years and our Supply-Demand Ratio (which measures the number of houses available per buyer) remains 30.3 percent better than where we were a year ago.
Traditional home sellers should consider making that price reduction now in order to lure buyers to your home and benefit from this window of opportunity. This fall you can take advantage of the nearing deadline of the $8000 tax credit for first time home buyers. Other advantages for the traditional home seller include the drop in foreclosure inventory, the opportunity for multiple offers on foreclosure properties and the length of 
time it takes to complete a short sale transaction. Even the local media has picked up on the positives occurring in the Twin Cities real estate market. The Cheryl Brenna Group invites you to view the attached from Fox 9 News on the Metro Housing Market Showing Signs of Recovery which aired Friday, September 25, 2009. See the video by reporter Tom halden below.
The encouraging news and it creates many reasons for optimism: 1) Growth in sales is no longer confined to lender-mediated homes as it had been earlier this year. 2) The median sales price has grown from $154,125 to $175,000. 3) Prices are stabilizing due to strong buyer demand – especially in the lower prices ranges. Let us help you with all your real estate needs. The Cheryl Brenna Group will look after your best interest and work diligently for you whether you are in the market for a new home or selling your current home! The time is now…whether you are a buyer or a seller in this market!
Filed under: Market Activity Reports, Market Statistics | Tags: Cheryl Brenna Group, Market Activity, Twin Cities Metro Area, Woodbury Housing Supply, Woodbury Real Estate News
Real Estate Market Activity Report
The Twin Cities housing market continues to regain a semblance of balance in supply and demand. Here is how our current market landscape looks like compared to years past:
• The 1,026 signed purchase agreements for the week ending August 15? That’s the most since 2005.
• The 25,765 active listings for sale? The fewest since 2005.
• The 1,630 new listings? The fewest since 2002.
In other words, buyer activity is growing and supply is shrinking. There are fewer homes available per buyer than at any point since 2005, and inventory should only continue to tighten through the remainder of the year.
The Housing Affordability Index (HAI) of 195 has begun to taper off from its high of 219 earlier this year, yet the current HAI still represents an increase of more than 30 percent from the boom years earlier this decade. Months Supply of Inventory currently sits at 7.2—down 31.4 percent from last year’s mark of 10.5.
There’s a lot of reasons for optimism, as some key market metrics are showing signs of rebound. However, there’s still more foreclosures than anyone’s comfortable with and the upper price brackets are unfortunately fairly quiet. Enjoy the newest Skinny video for a more thorough explanation.
The Cheryl Brenna Group is happy to answer any questions you may have regarding the current real estate market. You can count on us to go the extra mile and research your question in order to provide you with the most up-to-date information. We will be your inside guide for all your real estate needs and beyond!
Filed under: Market Activity Reports, Market Statistics, Twin Cities Real Estate News | Tags: Cheryl Brenna Group, Market Activity, metro area, Selling Your Home, Twin Cities Metro Area, woodbury mn
Market Activity Report
August. Welcome to another summer month in the Twin Cities housing market. Pending sales in July ended on a fairly positive note. The 1,009 purchase agreements signed for the week ending July 25 were 21.4 percent above last year at this time. The 1,652 new listings this week are 9.0 percent less than this week in 2008. Active listings as a whole are 21.7 percent behind last year.
The metric to watch this month is the Supply-Demand Ratio. At 4.88, this is a startling 34.8 percent less than where we were at this time last year. With less than five houses on the market per buyer and an affordability index sky-high at 192, the window is quickly closing for those wanting to get into a home under ideal conditions.
What’s the Better Seller Strategy?
The Minneapolis Area Association of Realtors sent out a one question survey a few weeks back to its 8,000+ members and over 240 members responded. 
Q: What’s the better seller strategy for properties that are having a tough time selling?
1) Price reductions.
2) Financial incentives to the buyer (seller pays closing costs, throws in sweet flat screen).
We thought you, especially sellers, would find this information very interesting. Over 73% of those that responded chose price reductions while only 11.6% chose buyer financial incentives. Note: Almost 9% of members wrote in “price it right from the start”.
The overall findings show that price is the driving force in this market. Let the Cheryl Brenna Group help you develop a marketing plan that will help you sell your home in this challenging market. We will provide you with all the information you need to price your home right and get it sold!
Filed under: Market Statistics, Twin Cities Real Estate News | Tags: currenty home inventory, MAAR, Market Activity, Twin Cities Metro Area, Woodbury Real Estate News
Lender-Mediated Supply of Homes for Sale Continues to Drop
The Q2-2009 Update to “Foreclosures and Short Sales in the Twin Cities Housing Market” was recently released by MAAR. Here’s a breakdown of the key takeaways that were discovered:
Takeaway #1: After reaching a historic peak in February, the number of foreclosures and short sales available for sale has fallen by more than 2,100 units to 6,685 at the start of July—the fewest available since March 2008. We’re not through the woods yet, but it’s a positive sign that so much of this inventory is being absorbed by buyers.
Takeaway #2: New analysis of RMLS data indicates that the supply of bank-owned foreclosures (excluding short sales) is much smaller. There were 1.84 bank-owned foreclosure homes available for each buyer in June—compared to 5.10 homes owned by a traditional seller and 10.22 homes in a short sale situation.
Takeaway #3: For Q2-2009, 30.0 percent of new listings and 44.2 percent of closed sales were lender-mediated.
Takeaway #4: Lender-mediated sales have increased 103.9 percent in the last year, while traditional sales have fallen by 17.2 percent.
Takeaway #5: New lender-mediated listings dropped slightly in Q2 2009 vs. Q1 2009 and have remained relatively flat for 5 quarters in a row. However, with rising unemployment and increasing mortgage defaults, high levels of new foreclosures are likely to continue into 2010.
Market Activity
As summer progresses, the Twin Cities housing market continues on a well-established pattern of shrinking supply and growing sales. New listings for the week ending July 11 were 1,867—a 13.7 percent decrease over last year but a nice pickup after the annual July 4 slowdown. Pending sales rose to 1,007, a year-over-year increase of 16.6 percent. That’s not as much of a year-over-year expansion as the 30-plus percent growth this number has seen recently, but it still represents a trend of growing demand.
Active listings are at 26,279, a decrease of 21.3 percent from this time last year. Coupling this with a shrinking number for Months Supply of Inventory and a flattening of our Average Days on Market, it’s apparent that the buyer advantage over sellers is waning, at least in the lower price ranges.
The Cheryl Brenna Group invites you to view the latest Skinny Video provided by the Minneapolis Area Association of Realtors for a recap of the most recent real estate statistics and trends. Take a look…
Filed under: Market Statistics, Twin Cities Real Estate News | Tags: Twin Cities Metro Area, Woodbury Housing Supply, Woodbury Real Estate News
The July Housing Supply Outlook just hit the internetz and, as usual, here are some quick bullet points of what to watch for.
Takeaway #1: The months supply of inventory for homes under $120,000 has dropped 61.5 percent in the last twelve months from 9.3 to 3.6—the lowest mark for that price range since 2005. Sales have almost quadrupled in that category in the last year while inventory of available homes has basically held flat. In sum, it is now officially a seller’s market in that price range.
Takeaway #2: The upper price brackets look markedly different, however. North of $190,000 sales are still in decline compared to a year ago. And north of $500,000 the months supply of inventory available continues to grow.
Takeaway #3: Condominiums remain the only property type that has still seen a year-over-year drop in home sales, down 8.2 percent over the last twelve months. Sales of single-family detached properties are up 20.2 percent and townhomes are up 4.9 percent
The latest Skinny Video from the Minneapolis Area Association of Realtors supports this information. Take a look…
We hope you enjoyed the Fourth of July weekend with your friends and family! The Cheryl Brenna Group has the inside guide to all of your real estate needs.
Filed under: Market Activity Reports, Market Statistics, Twin Cities Real Estate News, Woodbury Real Estate News | Tags: Cheryl Brenna Group, MAAR, Market Activity, Minnesota, Twin Cities Metro Area
Anatomy of a Recovering Market
There are several ingredients that must be present for a recovering market such as stabilizing home sales, sustainable sales prices, declining inventories, a more balanced buyer-seller market, and increased affordability. Robin Peterson, the President of Coldwell Banker Burnet looks at the current statistics, the positive trends and conditions in our local housing market and finds they are more encouraging than they’ve been for some time.
Home Sales Stabilize
One important aspect of a recovering market is the stabilization of sales. In the Twin Cities metro area, we’ve experienced 14 consecutive weeks of double-digit increases in pending sales compared to the same weeks last year, according to the Minneapolis Area Association of REALTORS® (MAAR). The most recent report from MAAR notes that April sales were even stronger than our improving March sales. There were 5,211 pending sales in April across the market, up 23.8 percent from April 2008. This is the highest number of signed purchase agreements in April since 2005. Closed sales in April also were good: Up 7.3 percent over last April.
Home Inventories Fall
Home inventory is another key component of a recovering market. As of May 11, the total active listings were 26,450, 19.5 percent lower than during the same period last year. But despite the lower number of houses for sale, there is still a great inventory of homes available. Whether you’re a first-time buyer, move-up buyer, or looking for a luxury home, there is plenty of selection.
Movement Back to Sustainable Prices; Declines Attract Buyers
During the boom years, home prices kept increasing to unsustainable levels. But during the last few years, we’ve seen price declines which are now leveling off. There have been larger price declines among lender-mediated properties, but if you look just at traditional properties, the median sales price is $205,000, just 8.5 percent lower than last April. This is great news for people who are looking to buy a home. They have great buying power in a market that is characterized by increasing price stability.
Consumers are noticing these opportunities and now have a very positive attitude about the housing market. A recent Gallup Poll of consumers across the country found that 71 percent of them believe that now is a good time to buy a home.
Housing Affordability Improves
In addition to attractive home prices, we also continue to enjoy great interest rates. Locally, interest rates for 30-year fixed rate mortgages are available in the high 4 percent range, and in the mid four percent range for 15-year fixed rate mortgages. This combination of low interest rates and good home prices is resulting in excellent affordability. MAAR reported that the May housing affordability index was 219, 45.5 percent higher than last year. This is the highest it’s ever been in our market since MAAR first began tracking affordability in 1990.
Month’s Supply of Inventory Tops Out
Our market has been a buyers’ market for quite some time, but during the last several months we’re seeing a return to a more balanced market. In May the month’s supply of inventory was 7.7, 24.5 percent lower than the May 2008 number of 10.2. This is definitely going in the right direction, as a five-month supply of homes for sale is considered balanced between buyers and sellers.
Builders/Developers Cut Production
Across the country, builders have been adjusting their production to meet demand. The Chairman of NAHB Joe Robson noted that builders are doing a “great job of thinning the supply of unsold homes and positioning themselves for a steady housing recovery.”
But it’s important to note that locally, builders are optimistic about the improving sales and filed an increased number of building permits in April. The Builders Association of the Twin Cities reported that there were 419 building permits filed in April, which was 43 percent higher than April 2008.
These favorable conditions, including government programs to encourage home purchases, are attracting more buyers. Many of our sales associates are working with first-time buyers who are excited about home values and the tax credit of up to $8,000 they will receive under the American Recovery and Reinvestment Act of 2009. Now is a great time to buy a home, especially for first time buyers.
During this spring home buying and selling season, buyers are out in force. They realize that our housing conditions are improving and there are opportunities they just can’t pass up.
We invite you to view the latest The Skinny video from the Minnepolis Area Association of Realtors that reinforces this information:
Filed under: Market Activity Reports, Market Statistics, Twin Cities Real Estate News, Woodbury | Tags: Cheryl Brenna Group, MAAR, Market Activity, Real Estate, Twin Cities Metro Area
Twin Cities Metro home sales hot streak continues into spring heat
The Minneapolis Area Association of Realtors released their monthly stats news today. Here’s what they said:
April home sales in the Twin Cities were even stronger than March’s upswing. There were 5,211 pending sales in April, up 23.8 percent from last April. This is the highest showing of signed purchase agreements in April since 2005 and the tenth consecutive month of year-over-year increases.
Of the month’s pending sales, 46.0 percent were lender-mediated foreclosures and short sales—down from the last few months as more traditional properties are sold during the spring selling season but up from last year at this time.
The supply of homes for sale continues to experience sluggish growth this spring. There are currently 26,410 homes for sale in the Twin Cities, up 416 units from last month and down 18.4 percent from this time last year. The number of houses for sale for each buyer, as measured by our Supply-Demand Ratio, sits at 5.23 for May—down 28.6 percent from this time last year.
The median sales price for all properties in April of $153,000 is down 25.2 percent from a year ago. While this figure is mathematically correct, it is conceptually flawed. Since a higher share of sales this April were lender-mediated than last April, the number is skewed downward. The median April sales price of traditional homes was $205,000, down 8.5 percent from a year ago. Lender-mediated homes posted an April figure of $120,000, down 21.5 percent from a year ago.
The Cheryl Brenna Group can assist you with all your real estate needs in Woodbury and the entire metro area and Western Wisconsin! Check out our Favorites on our home page for referrals to interior designers, painters, lawn and landscape services, cleaners, organizers, places to shop, entertainment and more! This fresh and exciting information is constantly updated for your convenience.
Filed under: Buying a Home, Market Activity Reports, Market Statistics, Selling a Home, Twin Cities Real Estate News | Tags: Cheryl Brenna Group, currenty home inventory, existing homes, foreclosure, Market Activity, Twin Cities Metro Area
Finding Price Bottoms: Months Supply of Inventory for Foreclosure and Short Sales
It was announced last week that the number of foreclosures and short sales on the market in the Twin Cities has dropped over 1,200 units from February to April. That’s undoubtedly a valuable measurement, but it also helps to look at metrics that take into account both supply AND demand like Months Supply of Inventory (MSI) to get a feel for where we’re at in this market cycle.
A quick review on MSI: MSI measures the amount of time (in months) that will take the current number of homes for sale to sell through completely given the current sales rate. The higher the number, the more supply there is relative to demand, the tougher it is for sellers, the longer it takes to sell a house. The lower the number, the less supply there is relative to demand, the easier it is for sellers, the less time it takes to sell a house.
A market that’s balanced between buyers and sellers is considered one in which there is roughly a 5- to 6-month supply of homes for sale.
So, what has the recent drop in inventory of lender-mediated properties meant for MSI in the Twin Cities market? Take a look:
In the last year, the MSI of lender-mediated properties has dropped 66.2 percent from an extreme buyers market of 15.6 months supply to a relatively balanced market of 5.3 percent. The traditional market has dropped very slightly from 9.7 months to 9.5 months.
What does this picture look like historically? Glad you asked. Take a gander at this here chart:
Lender-mediated MSI reached a peak of about 18 months supply during 2006. Since then its been on a general path downwards despite growing inventory thanks to increasing sales. The traditional market has been on a general path upward during that time period, though it appears to have plateaued somewhat this year.
Important takeaway #1: The foreclosure and short sale segment is not a buyer’s market anymore and likely will become a seller’s market in 2009, which will likely lead to a price bottom for that segment.
Important takeaway #2: The traditional market still sits firmly in the buyer’s market category with 9.5 months of supply. Further price declines should be expected.
For more information on where the Twin Cities real estate market is heading, we invite you to view the following video provided by MAAR. This monthly summary provides an overview of current trends and projections for future activity. Enjoy!
You can count on the Cheryl Brenna Group Blog to provide you with the most relevant, up-to-date real estate information! Feel free to contact us at 651-730-2521 for your real estate needs and more detailed market information.
