Twin City Real Estate Market Activity Report - Weekly
Every Week the MINNEAPOLIS AREA REALTORS® releases comprehensive data from the NorthstarMLS and shows 2 major applications that most residential agents use in their business. The data is broken down into 8 categories and provides an excellent screenshot into the Twin City Real estate market as a whole.
It's a cold brisk Saturday morning here in Richfield, Minnesota. I drove to Walgreens in Edina this morning. Place was a complete ghost town at 8am. Mental note here to remember this next time I "need" something at Walgreens at 8 am on a Saturday.
Welcome to the Twin City Market Report, before I get started today in an effort to be as factual as I can, I looked up what defined the Twin Cities. Based on the fact that my kids have been whining to me for years that wikipedia is not to be used as a reference, I started at wikipedia. There I see it is defined as a "Twin Cities Conurbation" so that should help clear any confusion up. If you live in Minnesota, you know if you are "in the twin cities" if you have to look, chances are you don't. Which is passive aggressive and in Minnesota means "go ____ yourself" (ice fishing by)
Let's jump into the report released on March 7th 2022. For the week ending February 26th, 2022
• New Listings decreased 12.7% to 1,104
• Pending Sales decreased 15.1% to 964
• Inventory decreased 16.9% to 4,469 For the month of January:
• Median Sales Price increased 10.6% to $333,000
• Days on Market decreased 2.4% to 41
• Percent of Original List Price Received increased 0.1% to 99.6%
• Months Supply of Homes For Sale decreased 20.0% to 0.8
(All comparisons to 2021)
Everything here in the data points to one thing, scarcity. A shortage of homes for sale, is pricing homes upward shortening market times and increasing the ratio of homes that sell at or above list price. The question is where does this trend head? Is this a housing trend in general or is it specific. One thing I have been doing is polling homeowners in Richfield, to try to get to the bottom of what's happening at-least on the local level. The percentage of people in their homes for 7 years or more in Richfield is over half. Has the industry standard of 5-7 year turnover suddenly shifted, or again is this a local general problem, or is it very specific. The only way for me to make those kinds of shots is to try to find it and see if it's recreated. For now, for the sake of first time homebuyers and those working to exit rental to ownership, Richfield is priced out for many, unless...
The average age and condition of homes is playing a factor, as well. The well kept, freshly painted, staged homes are disappearing before they hit the market. But if they don't sell that first weekend, there may be a tendency to panic on the part of sellers if the home doesn't sell, they wonder if their hopes have been dashed. If you're a buyer in the area and you wait until day 4-5 to put in your offer, or longer you may be able to negotiate favorable terms. There are also a reasonable percentage of homes that are in below average condition that need some TLC, or maybe have a quirk, that might be a benefit for you.
Really for me 2 things need to happen to get to what I consider a balanced market and that is a huge surge of pent up demand to come on the market sometime after the snow and cold are gone. If the listings start ticking up later in the summer or fall, it could take another year and a solid spring to have an impact.
The second thing is the oddity of the times we live in. That being said, there is data out there that supports the idea that it always seems like we are on the brink of something. The end is always being near is "Normal" Being normal, would be "odd" anyways the point I am trying to make here is that the "odd" part is the change has been"behavioral" Our behavior was modified to an outcome, does this make us want to stay in our homes for ever, remains to be seen.
How much is my Home Worth?
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