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.
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
(December 17, 2020) – According to new data from the Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, the growth in buyer and seller activity in the 16-county Twin Cities metro continues to climb above 2019 levels. Seller activity rose 1.3 percent from last November while new purchase agreements were up 13.4 percent over last year. That marks the strongest November pending sales figure since 2004 and the highest closed sales since at least 2003.
This year, the fall and winter markets are behaving more like a spring market since activity was delayed from the spring and summer months. While sellers only listed slightly more units than last November, pending and closed sales were up significantly. Pending sales often act as a leading indicator of future demand while closings lag.“The Twin Cities housing market continues to exceed expectations,” according to Patrick Ruble, President of the Saint Paul Area Association of REALTORS®. “Despite record sales figures, the lack of adequate supply—particularly affordable units—continues to frustrate buyers.”
Historically low mortgage rates, shifting work and learning patterns, health concerns and other factors are driving this sellers’ market. While all areas and price points are unique, sellers are getting strong offers early on. On average, sellers obtained 100.2 percent of their original list price—the highest November figure since at least 2003. At a median of 15 days, homes went under contract in record time, and 48.3 percent faster than last November.
“It’s truly impressive that sales would reach new highs during a pandemic and an otherwise challenging year,” said Linda Rogers, President of Minneapolis Area REALTORS®. “That’s of course meant rising home prices, but luckily, ultra-low interest rates have been able to partly offset that.”
Sales were up 21.5 percent in Minneapolis and 30.8 percent in St. Paul, suggesting buyers are eager to quickly snap up any new listings. And the competitive landscape means those buyers are often going above list price. With prices slightly lower, market times higher and offers weaker, the condo market continues to lag other segments. However, sales of luxury properties ($1M+) have been soaring higher—up nearly 20.0 percent YTD. One thing is clear: the housing market continues to outperform, despite the many economic headwinds.
November 2020 by the numbers compared to a year ago
- Sellers listed 4,035 properties on the market, a 1.3 percent increase from last November
- Buyers signed 4,640 purchase agreements, up 13.4 percent (5,624 closed sales, up 18.6 percent)
- Inventory levels fell 37.9 percent to 6,642 units
- Months Supply of Inventory was down 42.9 percent to2 months (5-6 months is balanced)
- The Median Sales Price rose 10.7 percent to $310,000
- Days on Market decreased 33.3 percent to 34 days, on average (median of 15, down 48.3 percent)
- Changes in Sales activity varied by market segment
- Single family sales were up 21.3 percent; condo sales fell 2.6 percent; townhome sales increased 20.6 percent
- Traditional sales rose 19.7 percent; foreclosure sales were down 22.9 percent; short sales fell 18.8 percent
- Previously owned sales were up 21.7 percent; new construction sales climbed 4.8 percent
December 17, 2020
The housing market continues to surge higher and support an otherwise stagnant economy that has lost momentum in the last couple of months. Mortgage rates are at record lows and pushing many prospective homebuyers off the sidelines and into the market. Homebuyer sentiment is sanguine and purchase demand shows no real signs of waning at all heading into next year.
Information provided by Freddie Mac.
The National Association of REALTORS® released a new report analyzing relocation trends during the pandemic. From March through October 2020, 8.9 million people moved according to the NAR’s analysis of USPS change-of-address data. While this sounds substantial, when comparing to the same period last year, only approximately 94,000 more people moved this year than a year ago. The biggest trend was people moving from large cities to surrounding suburbs, with those counties located closest to big cities seeing the highest relocation gains.
In the Twin Cities region, for the week ending December 5:
- New Listings decreased 2.9% to 851
- Pending Sales increased 7.1% to 999
- Inventory decreased 35.3% to 6,748
For the month of October:
- Median Sales Price increased 12.5% to $315,000
- Days on Market decreased 23.9% to 35
- Percent of Original List Price Received increased 2.4% to 100.5%
- Months Supply of Homes For Sale decreased 36.0% to 1.6
All comparisons are to 2019
December 10, 2020
Mortgage rates remain at record lows, resisting their typical correlation to Treasury yields, which have recently been moving higher. Mortgage spreads – the difference between mortgage rates and the 10-year Treasury rate – are declining from their elevated levels earlier this year. Although today’s mortgage spread is about 1.8 percentage points and still has some room to move down if the 10-year Treasury continues to rise, it’s encouraging to see that the spread is almost back to normal levels.
Information provided by Freddie Mac.