Archives for December 2020

Mortgage Rates Remain Near Record Low Heading Into 2021

December 31, 2020
All eyes have been on mortgage rates this year, especially the 30-year fixed-rate, which has dropped more than one percentage point over the last twelve months, driving housing market activity in 2020. Heading into 2021 we expect rates to remain flat, potentially rising modestly off their record low, but solid purchase demand and tight inventory will continue to put pressure on housing markets as well as house price growth.

Information provided by Freddie Mac.

Weekly Market Report

For Week Ending December 19, 2020

According to research by realtor.comĀ®, all-cash home purchases make up about 36% of the market, which is up only slightly from last year. While the middle-price tiers saw about the same percentage of all-cash sales as last year, the low end of the market (under $200,000) and the very top of the market (over $1 million) saw higher shares of cash sales this year than last.

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

  • New Listings increased 28.1% to 693
  • Pending Sales increased 24.4% to 923
  • Inventory decreased 37.0% to 6,137

For the month of November:

  • Median Sales Price increased 10.7% to $310,000
  • Days on Market decreased 33.3% to 34
  • Percent of Original List Price Received increased 2.8% to 100.2%
  • Months Supply of Homes For Sale decreased 38.1% to 1.3

All comparisons are to 2019

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

Mortgage Rates Hit Another Record Low

December 24, 2020
The housing market is poised to finish the year strong as low mortgage rates continue to fuel homebuyer demand and refinance activity. Moving into 2021, we expect rates to hold steady but the key driver in the near term will be the trajectory of the COVID-19 pandemic and the execution of the vaccine.

Information provided by Freddie Mac.

November Monthly Skinny Video

Showing activity remains higher than the same period a year ago across most of the country, suggesting that strong buyer demand is likely to continue into what is typically the slowest time of year.

Weekly Market Report

For Week Ending December 12, 2020

The National Association of Home Builders reports that lumber prices are rising again. After hitting an all-time high of near $950 per thousand board feet in September, prices slid to near $550 per thousand board feet in October but are now above $650 per thousand board feet in December. High lumber prices have contributed to significant price increases in most new construction homes this year and increases the costs of remodeling as well. A tariff reduction expected this month may help soften lumber costs in the coming weeks.

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

  • New Listings increased 23.6% to 870
  • Pending Sales increased 10.0% to 838
  • Inventory decreased 36.5% to 6,421

For the month of November:

  • Median Sales Price increased 10.7% to $310,000
  • Days on Market decreased 33.3% to 34
  • Percent of Original List Price Received increased 2.8% to 100.2%
  • Months Supply of Homes For Sale decreased 38.1% to 1.3

All comparisons are to 2019

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