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2012: Twin Cities Housing Turnaround

Home Sales on the Rise

The Twin Cities saw a surprising turnaround in the housing market in 2012.  While I had predicted that the Twin Cities had hit bottom in January 2012, no one, including myself, had expected as strong of a 2012 as we had. While final numbers are not in yet, 2012 was a banner year for the Twin Cities. Prices surged, Traditional Seller activity increased while distressed sales decreased, buyer demand swelled nearly 20% and the inventory of for-sale homes dropped almost 30%. That increase in buyer demand and … [Read more...]

Twin Cities’ Record Low Housing Inventory Poised To Drop Further

Chart courtesy MAAR, data from RMLS of MN.

The Twin Cities real estate market continues to improve at a stronger pace than most industry insiders expected, including myself.  Buyers have been coming out of the woodwork to take advantage of all time record low interest rates - one of my clients just locked in a 2.875% 30yr FIXED FHA loan! Historically in the Twin Cities, Sellers like to hibernate until after the first of the year and so the available inventory of homes for sale in the Twin Cities drops dramatically from its summer highs to its winter … [Read more...]

Twin Cities Home Prices – A Couple Thoughts

Chart compliments of MAAR, data from RMLS of Minnesota

2012 has been surprising in how strong the buyer activity has been and also how much home prices have moved up.  Certainly a much stronger year than I was expecting.  While every metric used to summarize home prices has its faults, my favorite stat the last 18 months is Average Price Per Square Foot for Traditional Sales: This chart shows why I think is a more accurate view of our housing market tumble: prices were almost consistently falling except for the period during the tax credit expiration in 2010. … [Read more...]

Twin Cities Foreclosure Forecast: Fewer Foreclosures in 2013

Twin Cities Foreclosure Activity

I'm a huge data nerd.  I stare at charts and data almost daily to get a better sense of what's going on in the housing market.  One of the more interesting datasets I look at is foreclosure activity.  Between the preforeclosure notices published by the Minnesota Home Ownership Center, the sheriff sale data published by HousingLink and the MLS foreclosure sales from MAAR, we can build a very good picture of foreclosure activity over the last few years: But this data can do more than just show current … [Read more...]

Minnesota Preforeclosure Notices Drop 25%

My friends at the Minnesota Home Ownership Center released an update to their preforeclosure stats today that show preforeclosure notices are down 25% from a year ago and 17% from last quarter: This is great news at it signals even fewer foreclosures for Minnesota in the future.  Preforeclosure notices typically go out 2-6 months before a sheriff sale occurs.  Thus with this information, I can project out into 2013 and tell you that even fewer foreclosures will be for sale in the next 8-12 months than … [Read more...]

Twin Cities Foreclosures Plummet

Where have all the foreclosures gone?  In the Twin Cities, foreclosure inventory is nearly half of what it was just a year ago and down nearly 60% since its peak: Twin Cities Foreclosures Listed on the MLS Why have they declined so much?  Well first of all, demand for foreclosures has been and continues to remain high from both traditional buyers as well as investors.  The more important trend however is the decreasing supply of new foreclosures due to lower numbers of sheriff sales: Sheriff Sales in … [Read more...]

Twin Cities Home Affordability Has Peaked

twin cities housing affordability index

As we see Twin Cities home prices bottom (and likely tick up) and interest rates begin to rise, home affordability in the Twin Cities is likely to fall in 2012 and beyond. For years we've seen home prices decline.  This decline wooed us into a sense that home affordability would keep getting better the longer we waited. Well in the last 6 months we've seen a dramatic decrease in the number of homes for sale while also seeing an equally large increase in the number of buyers in the market, which has caused overall … [Read more...]

Twin Cities Home Prices Have Bottomed

percent of original list price received at time of sale

Two months ago I first called the housing bottom in the Twin Cities and I'm back today to repeat that claim and bring new information that has come out in the last two months: Pre-foreclosure notices have dropped even further, meaning even fewer foreclosures on the market in 9-12 months Sheriff Sales in 2011 declined to the lowest level since 2007 The number of homes for sale are now at 7+ year lows The decline of median sales price from February 2011 to February 2012 was the smallest year over year decline … [Read more...]

The Twin Cities Housing Market Has Bottomed

MHP 2x4 Report - Rental Chart

After years of price declines, today I am here to say that the Twin Cities housing market has bottomed. Having sold houses for the last nine years I can tell you I've seen both the up and the dramatic down of our market... it has been quite the theme park ride!  I think we are all sick of the real estate roller coaster and would prefer to enjoy a little "lazy river" type housing market for a while - one that ebbs and flows but without the steep drops or climbs of our recent past. I've spent years looking at many … [Read more...]

Twin Cities Home Buyers Forget to Take a Holiday

Twin Cities Pending Home Sales - 12-24-11

What are normally the coldest weeks in the real estate market are this year much warmer than normal, just like our weather.  We've seen huge year-over-year increases in Pending Sales for months now but the weeks ending 12/17 and 12/24 saw 48% more accepted purchase agreements than a year ago.  Those are numbers you just can't ignore.  If/when the temperature drops will we see less buyer activity?  Time will soon tell... if buyer activity does fall then some of this can be chalked up to just the weather.  If … [Read more...]

Disclaimer

TwinCitiesRealEstateBlog.com is not a Multiple Listing Service MLS, nor does it offer MLS access.
This website is a service of Aaron Dickinson of Edina Realty, a broker Participant of the Regional Multiple Listing Service of Minnesota, Inc.