Weekly Market Activity Report

I remain very optimistic about the market - it seems there are pockets that are selling quickly - coming back to location, location, location. So, please read the following info with the understanding this is across the Twin Cities - not necessarily specific at all to the West Metro. It's good information as this is what the general public reads/believes so does influence the market. Please call or email me if you have any questions. Here's the update:

The song remains the same from week to week in the spring Twin Cities housing market; new listings are flat relative to the previous year while buyer activity declines further. New listings for the week ending May 19 were 0.7 percent behind this time in 2006, posting 2,656 new units. Of these new listings, only 301 were new construction, bringing the new construction share of our total current inventory to 16.1 percent compared to 19.7 percent one year ago. Newly signed purchase agreements (pending sales) were down 21.5 percent from the same week last year, continuing the trend of significant declines seen in recent weeks.

The residential market discord reflects a period of widespread recalibration of home values, lending standards, housing affordability, supply-demand dynamics, and construction activity; and the climax of this is depressed consumer confidence relative to real estate. The frenzied boom we saw from 1998 to 2005 was so extreme that it necessitates the market correction currently underway. The uncertainty surrounding our shifting market causes angst for both consumers and REALTORS® alike, but the adjustments now taking place will inevitably lead to long-term health and stability to our market.

Weekly Market Activity Report

Buyer activity in the Twin Cities housing market remains low compared to the past several years, with newly signed purchase agreements (pending sales) for the week ending May 12 falling 21.8 percent behind the same week in 2006. Seller activity posted an increase of 4.7 percent for the same year-over-year comparison—the first annualized increase in four weeks.

Inventory continues to grow as the summer selling season approaches. There are approximately 34,000 single-family housing units for sale in the metro area, 11.6 percent more than were available at this time last year. New construction homes comprise 16.5 percent—roughly 5,550 units—of total inventory.

Open Houses - Sunday, May 20, 2007

Time: 1:00 PM to 4:00 PM - Sunday, May 20, 2007
Address: 10 Hill Street
Location: Chanhassen, MN 55317

Time: 1:00 PM to 4:00 PM - Sunday, May 20, 2007
Address: 2221 Lukewood Drive
Location: Chanhassen, MN 55317

Time: 12:00 PM to 2:00 PM - Sunday, May 20, 2007
Address: 2500 Clover Field Drive
Location: Chaska, MN 55318

Go to http://www.staffordfamilyrealtors.com/ for more information. For questions, call Sharla Stafford at 612-282-6895.

Weekly Market Activity Report

Buyers and sellers in the Twin Cities housing market continue to exercise restraint. There were just over 2,800 new listings for the week ending May 5—down 5.2 percent from the same week in 2006. Newly signed purchase agreements (pending sales) were 13 percent behind for the same time period. The total inventory of homes on the market continues its gradual spring growth, rising above 33,000 single-family units—up 11.8 percent from this time last year.

This week's edition of the MAAR Weekly Market Activity Report features updated figures for Mortgage Rates, the Housing Affordability Index (HAI) and the Housing Supply Outlook (HSO). Interest rates in May continue to hold steady at 6.1 percent. Despite no movement in these historically low borrowing costs from last month, the HAI dipped one point to 139 due to a slight increase in median home prices. The HSO increased to 8.5 months, which means it will take the current inventory of homes on the market 8.5 months to be absorbed by buyer activity.

Weekly Market Activity Report

As we approach the summer selling season, buyer activity remains relatively subdued when compared to previous years. Pending sales for the week ending April 28 were down 11.3 percent compared to the same time last year, while new listings were 1.8 percent behind using the same year-over-year comparison. The total inventory of homes on the market is growing as we near summer but not at the same pace as 2006 thanks to a needed curtailing of new listings by builders and sellers. Only 16.8 percent of the region's available housing stock is new construction, down from a 22 percent share in December of 2006.

This week's edition of the MAAR Weekly Market Activity Report features updated figures for both the Percent of Original List Price Received at Sale and the Supply-Demand Ratio (SDR). The April 2006 Percent of Original List Price Received at Sale was 95.9 percent, up slightly from the previous month. The SDR for May 2006 is 6.64, which means there are approximately 6.64 homes on the market for every buyer. The SDR should rise through the rest of 2007, as buyer activity will taper off in the second half while more homes continue to come on the market.

Weekly Market Activity Report

The key word in explaining the current state of the Twin Cities housing market is caution. There is a renewed sense of caution in the lending industry following the subprime mortgage market fallout, with lenders tightening restrictions on loan qualification. And buyers are showing continued restraint despite a market with improving affordability and a wealth of housing stock to choose from, possibly wary from the slew of anxiety-invoking media pieces on the housing market.
The effects of this caution can be seen in our spring activity, which is growing at a slower pace in 2007 than it did in 2006. Newly signed purchase agreements were 15.6 percent behind the same week last year and new listings were 7.1 percent behind for the same time comparison. Growth should remain gradual and measured in the coming months as we enter the summer selling season.

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