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March 2021 Housing Report

By MNR News posted

New listings drop as housing supply continues to shrink

MINNEAPOLIS (April 12, 2021) — In March, the shortage of affordable housing continued to squeeze a heated market driven by rising buyer demand, according to Minnesota Realtors® (MNR), the membership organization supporting all 22,000 Realtors in the state. Although closed sales increased +3.1% over last March, and pending sales were up +12.1%, activity was dampened by a -10.9% decline in new listings. Homes for sale were down -54.8% over last year, leaving only a one-month supply of inventory statewide. These factors made for an extremely competitive market where the median sales price rose +10.1% to $295,000, and homes went from listing to closing in only 42 days, down -26.3% from 2020. On average, properties received 100.7% of the original price received, up +2.8% from a year ago. In total, March marked a strong end to Q1, with closed sales up +8.5% year to date.

“There’s no doubt that we will be in a seller’s market well into the future,” said Chris Galler, CEO of Minnesota Realtors. “Factors that were in play even before the pandemic continue to shape the housing environment, including historically low interest rates and a stubbornly persistent shortage of homes. Supply is further depressed by homeowners who are reluctant to sell their properties for fear of being unable to purchase an affordable home in the area where they are relocating. Despite these challenges, pending sales indicate that we can anticipate another very active selling season right through the summer. We certainly have come a long way from the uncertainty following the governor’s Stay Home MN order in March of last year.”

Across Minnesota, there were only 7,738 homes for sale in March, compared to 17,124 in March 2020.

March year-over-year summary:

  • Closed sales: +3.1% to 5,917
  • Median sales price: +10.1% to $295,000
  • Average sales price: +11.9% to $338,707
  • New listings: -10.9% to 9,202
  • Pending sales: +12.1% to 8,101
  • Days on the market: -26.3% to 42 days
  • Homes for sale: -54.8% to 7,738

 

Closed Home Sales Across Minnesota by Region

Eleven of Minnesota’s 13 regions saw increases in closed sales over March 2020. Five more regions marked single digit increases. Only two areas saw declines: Southeast with -6.4% and Southwest Central with -7.8%. See the chart below for more details comparing March 2021 to March 2020.

housing data graph

The seven-county Twin Cities region comprises Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties. The official Minneapolis-St. Paul-Bloomington metropolitan statistical area recognized by the Census Bureau consists of 16 counties, on which MAR & SPAAR local associations report.

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February 2021 Market Report

Homes for sale down. Pending sales flat for first time since May 2020

MINNEAPOLIS (March 10, 2021) — Demand remained high in the Minnesota housing market in February as homebuyers competed with multiple offers for diminishing housing stock. Closed sales were up +5.8% over last year, but new listings sank -14.8%.  Since last May, pending sales fell flat for the first time and were down -0.8% from February 2020. Adding to the pressure, homes for sale fell 51.6%, the largest decrease in a year. Shrinking inventory defined this seller’s market, pushing the median sales price up +10.6% to $282,000. Days on the market retracted by -25.47% over last year, down to just 47 days. Correspondingly, homes received 99.0% of the original price received, a +2.3% increase over last year.

“In a heated market where there isn’t even a month of supply available, many sellers are in the enviable position of sometimes getting offers that exceed the list price,” said Chris Galler, CEO of Minnesota Realtors. “As we come into the spring selling season, more inventory will come online. But as long as interest rates remain favorable, buyers will come out in even greater numbers. A year into the pandemic, changes in work and lifestyle continue to fuel the desire for more space. The dropping rate of COVID infections in Minnesota and the increasing number of vaccinated individuals also will likely impact consumer behavior. So, although we’re anticipating another record-breaking sales season, it is likely that supply will run short of the overwhelming demand.”

Across the state, there were only 7,460 homes available for sale compared to 15,417 in February 2020.

February year-over-year summary:

  • Closed sales: +5.8% to 4,424
  • Median sales price: +10.6% to $282,00
  • Average sales price: +10.5% to $319,813
  • New listings: -14.8% to 6,184
  • Pending sales: -0.8% to 5,762
  • Days on the market: -25.4% to 47 days
  • Homes for sale: -51.6% to 7,460


Closed Home Sales Across Minnesota by Region

Closed sales were up by double digits in eight of the 13 Minnesota regions, with the Upper MN Valley hitting a 100% increase over February 2020. South Central and the seven-County Twin Cities saw more modest gains, while the Arrowhead was flat to last year. Southwest Central and Southeast both marked single-digit declines. See the chart below for more details comparing February 2021 to February 2020.

graph of regional stats

The seven-county Twin Cities region comprises Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties. The official Minneapolis-St. Paul-Bloomington metropolitan statistical area recognized by the Census Bureau consists of 16 counties, on which MAR & SPAAR local associations report.

Source: MNR news

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January 2021 Market Report

Pending sales remain up but soften to single digits. New listings decline.

The Minnesota housing market remained strong in January, with year-over-year closed sales up +16.2% and pending home sales up +5.2%, according to Minnesota Realtors® (MNR), the membership organization supporting all 21,000 Realtors in the state. Market demand for homes remained high, with average days on market at 46 days, which is two fewer weeks or a 25.8% reduction when compared to January 2020.

With only one month’s supply of inventory available — and new listings down by -12.1% — competition among buyers for scarce housing stock is intense. By the end of January, there were only 7,860 homes for sale in the state, a -48.3% decline from January 2020. On average, sellers were getting +98.3% of their asking price, which is a +2.6% increase compared to last year at this time.

“January was still very much a seller’s market. Heightened demand was met with a decline in new listings, exacerbating the impact of historically low inventory in a market where consumers are primed to buy,” said Chris Galler, CEO of Minnesota Realtors. “With the shifts in lifestyle and working habits brought on by the pandemic, people are hungry for space. As long as interest rates remain low, this trend is likely to continue. As spring approaches, we are likely to see another very hot selling season.”

Statewide, the median sales price jumped +10.9% over January 2020 to $272,000, and the average sales price hit $310,785, up +8.4%.

January year-over-year summary:

  • Closed sales: +16.2% to 4,788
  • Median sales price: +10.9% to $272,00
  • Average sales price: +8.4% to $310,785
  • New listings: -12.1% to 5,274
  • Pending sales: +5.2% to 4,905
  • Days on the market: -25.8% to 46 days
  • Homes for sale: -48.3% to 7,860

 

Closed Home Sales Across Minnesota by Region

January saw double-digit increases in year-over-year closed sales in 11 out of the 13 Minnesota regions, with the Northwest region topping the chart with a more than 40%hike. Only two regions, Southeast and West Central, showed more modest increases of+6.4% and +3.5% respectively. See chart below for more details comparing January 2021 to January 2020.

map of minnesota

The seven-county Twin Cities region comprises Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties. The official Minneapolis-St. Paul-Bloomington metropolitan statistical area recognized by the Census Bureau consists of 16 counties, which is what MAR & SPAAR local associations report on.

Source: MNR News

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Review of the 2020 Real Estate Market

Despite the headwinds, 2020 was a record-breaking year for housing

 Tags: Market DataPress Releases

(January 26, 2021) – According to the 2020 annual report from the Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, both buyer and seller activity in the 16-county Twin Cities metro last year outpaced 2019 levels. After a brief pullback following the onset of the pandemic—and aided by remote work, distance learning, historically low rates and a desire for more space—market activity recovered quickly and ended the year posting several new records across various metrics.

Seller activity rose a modest 0.1 percent from 2019 while closed sales were up 7.7 percent. That marks the highest sales figure since at least 2003 and the highest new listings count since 2016. Listing activity was constrained due to health concerns, remodeling activity, a lack of options and homeowners staying in their homes longer.

“Predictably, the result of record sales combined with ultra-low inventory meant rising prices and sellers accepting stronger offers in less time,” according to Tracy Baglio, President of the Saint Paul Area Association of REALTORS®.

Governor Walz’s shelter-in-place order paused market activity in April and May, which created pent-up demand that pushed the spring market into summer and the summer market into fall. Buyers were still more eager to purchase than sellers were to list, meaning multiple offers remained commonplace—particularly at the more affordable price points where the inventory shortage is even more pronounced.

“Despite several challenges, the Twin Cities housing market exceeded all expectations,” said Todd Walker, President of Minneapolis Area REALTORS®. “Inventory remained a hurdle, but homeowners have never had so much equity in their homes and buyers haven’t seen rates this low in 50 years, offsetting rising prices.”

The median sales price rose 8.9 percent to $305,000, a record high. On average, sellers obtained 99.8 percent of their list price—the highest since at least 2003. Homes sold quickly. Half the sales had accepted offers in under 18 days. Importantly, all areas, price points and property types are unique.

Signed contracts rose 10.0 percent in Minneapolis and 16.4 percent in St. Paul, suggesting core cities remain attractive. With prices slightly lower, market times higher and offers weaker, the condo market continues to lag other segments. Aided by favorable jumbo rates and a recovered stock market, sales of luxury properties ($1M+) have been soaring higher—up 25.4 percent from 2019.

One thing is clear: the housing market continues to outperform, despite several headwinds.

2020 BY THE NUMBERS (COMPARED TO 2019)

  • Sellers listed 76,348 properties on the market, a 0.1 percent increase from 2019
  • Buyers closed on 64,479 properties, up 7.7 percent (65,770 pending sales, up 9.7 percent)
  • The Median Sales Price rose 8.9 percent to $305,000
  • Inventory levels fell 39.3 percent to 5,080 units
  • Months Supply of Inventory was down 47.1 percent to 0.9 months (5-6 months is balanced)
  • Days on Market decreased 12.2 percent to 43 days, on average (median of 18, down 21.7 percent)
  • Changes in Sales activity varied by market segment
    • Single family sales were up 10.8 percent; condo sales fell 10.6 percent; townhome sales increased 3.4 percent
    • Traditional sales rose 8.4 percent; foreclosure sales were down 20.9 percent; short sales fell 25.9 percent
    • Previously owned sales were up 7.3 percent; new construction sales climbed 14.1 percent
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December 2020 Home Prices

Seven straight months of double-digit increases in pending sales

MINNEAPOLIS (Jan. 12, 2020) – Home sales in Minnesota continued to outpace normal trends through the end of 2020. Closed sales in December rose +21.9% versus December 2019 with a total of 7,300 transactions across the state. Pending sales were also riding high with 5,118 in the pipeline, up +19.2% over a year ago.

Although new listings increased in December 2020 by +14.9%, the number of homes for sale dropped -46.1% compared to December 2019. As buyers competed for scarce inventory, the median sales price increased +10.4%, and properties averaged 43 days on the market, down -21.8% or 12 days less than December 2019. The shortage of properties pushed the average sales price up +9.9% statewide to more than $320,000, with sellers receiving 98.5% of the original price, a +2.4% increase over last year.

“The strong finish to the year stands in stark contrast to the turbulent first quarter when the spread of COVID-19 disrupted the economy and greatly slowed the housing market. As the recovery got underway in May, many buyers were highly motivated to find more spacious homes after months of lockdown imposed by the pandemic,” said Chris Galler, CEO of Minnesota Realtors. “Historically low interest rates fueled frenzied competition for diminishing inventory, making multiple offers the new norm. This level of activity has not been seen in Minnesota for 15 years.”

Overall, total pending sales for the full year 2020 totaled 94,474, up +10.6% over 2019. Closed sales reached 92,576 for the year, marking a +8.4% rise. The number of homes available for sale, however, declined -46.1% from the year before. And while new listings expanded to 106,873 properties—a +2.7% increase—they could not match demand. By the end of 2020, there were 8,403 homes for sale, which was -46.1% or 8,403 fewer homes for sale than 2019.

As market activity increased, so did the price range of homes. More than 9,700 properties sold for $500,000 and above, a +33.4 increase above 2019. By contrast, the percentage of homes in the $150,000 to $200,000 range dropped by 14.1%, with only 6,810 homes sold.

“All the indicators strongly suggest that buyer demand will remain high well into the 2021 selling season. We anticipate that mortgage rates will remain low, and buyers highly motivated to find affordable homes,” said Galler. “The only thing holding the market back is consistently sluggish inventory. That is unlikely to change until we innovate an intelligent, market-driven response that meets consumer demand. It will be a win for everyone that drives our industry forward.”

December year-over-year summary:

  • Closed sales: +21.9% to 7,300
  • Median sales price: +10.4% to $277,00
  • Average sales price: +9.9% to $320,551
  • New listings: +14.9% to 4,086
  • Pending sales: +19.2% to 5,118
  • Days on the market: -21.8% to 43 days
  • Homes for sale: -46.1% to 8,403
  • Months supply of inventory: -50.0% to 1.1

2020 year-over-year summary:

  • Closed sales +8.4% to 92,576
  • Median sales price: +8.3% to $275,000
  • Average sales price: +8.3% to $315,348
  • New listings -2.5% to 106,873
  • Pending sales +10.6% to 94,474
  • Days on market -8.2% to 45 days


Closed Home Sales Across Minnesota by Region

With one exception, every region saw double-digit increases in year-over-year closed sales. Even the Upper Minnesota River Valley — where sales were down -11.8% in November —overcame the deficit and ended 2020 with a +2.7% increase. See chart below for more details comparing December 2020 to December 2019.

housing report graph

The seven-county Twin Cities region comprises Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington counties. The official Minneapolis-St. Paul-Bloomington metropolitan statistical area recognized by the Census Bureau consists of 16 counties, which is what MAR & SPAAR local associations report on.

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November 2020 Home Sale Report

Despite pandemic, this year is on-track for record-breaking sales

 Tags: Market DataPress Releases

New Listings Flat, Sales Up, Price Growth Strong, Market Times Fast, But Supply Levels Extremely Low

(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
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Fall Market 2020 Heading Into Winter 2020

Sales outpacing supply, prices accelerate, core cities remain strong

New Listings And Sales Up, Price Growth Accelerating, But Supply Levels Extremely Low

(November 19, 2020) – According to new data from the Minneapolis Area REALTORS® and the Saint Paul Area Association of REALTORS®, buyer and seller activity in the 16-county Twin Cities metro continue to outpace 2019. Seller activity rose 8.4 percent compared to last October while buyer activity was up 21.8 percent, marking the strongest October sales figure since at least 2003.

Buyers are motivated by expectations of working and spending more time at home and are also buoyed by historically low interest rates. That has resulted in a highly competitive marketplace where sellers get strong offers—sometimes above asking price—in record time and often with multiple offers. It has also caused inventory levels to plummet, frustrating many buyers.

“Buyers are still out in force, which is fairly unusual for this time of year when things typically quiet down,” according to Patrick Ruble, President of the Saint Paul Area Association of REALTORS®. “But the shortage of inventory and fast pace of the market are still keeping some waiting in the wings.”

Record-low mortgage rates, a desire for more space, a shortage of listings and Millennials aging into homeownership have all led to record-setting demand and rising prices among other changes. This is unusual during a recession, which impacts people differently. The mid-market move-up ranges and luxury segments have been performing better as salaried professionals have been spared much of the hardship. Conversely, many would-be buyers in the most affordable price points have been sidelined as they’re more likely to be impacted by job or income loss.

Still firmly in the driver’s seat, sellers, on average, accepted offers at 100.5 percent of their original list price—matching a high for any month going back to at least 2003. At 35 days on average, homes across the metro sold 23.9 percent quicker than last October.

“Despite some earlier challenges, Minneapolis and St. Paul are still seeing strong sales growth,” said Linda Rogers, President of Minneapolis Area REALTORS®. “They’re still quite competitive.”

For example, new listings rose 35.5 percent in Minneapolis and 22.8 percent in St. Paul while sales were up 47.4 and 28.9 percent, respectively. Demand in the core cities is once again outpacing supply. Downtown condos are still an area of weakness, but metro-wide sales of homes priced over $1M are up over 98.0 percent from last October.

October 2020 by the numbers compared to a year ago

  • Sellers listed 6,816 properties on the market, an 8.4 percent increase from last October
  • Buyers signed 6,249 purchase agreements, up 21.8 percent (6,674 closed sales, up 22.3 percent)
  • Inventory levels fell 34.5 percent to 8,080 units
  • Months Supply of Inventory was down 40.0 percent to5 months (5-6 months is balanced)
  • The Median Sales Price rose 12.5 percent to $315,000
  • Days on Market decreased 23.9 percent to 35 days, on average (median of 14, down 44.0 percent)
  • Changes in Sales activity varied by market segment
    • Single family sales were up 24.07percent; condo sales rose 8.6 percent; townhome sales increased 17.6 percent
    • Traditional sales rose 22.3 percent; foreclosure sales were down 20.4 percent; short sales fell 6.7 percent
    • Previously owned sales were up 20.1 percent; new construction sales climbed 43.4 percent

All information is according to the Minneapolis Area REALTORS® and Saint Paul Area Association of REALTORS based on data from NorthstarMLS. We serve the Twin Cities 16-county metro area and western Wisconsin.

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COVID-19

Real Estate has been considered an Essential Business, by the Governor of Minnesota, during the COVID-19 crisis. Cushman Realty continues with day to day operations, with some modifications out of concern for our clients and the community in general.

Here are some of the modifications you can expect:

  • Open houses will be allowed based on the decision of our clients and their Realtors. There will be specific guidelines in place for the health and safety of our clients, our Realtors, and the general public viewing the open house. This will be placed outside on the door of any open house Cushman Realty holds.
  • Only the specific clients on contracts are allowed in properties for showings (along with their respective agents).
  • Masks should be worn.
  • Hand sanitizing is a must.

As we learn to navigate the real estate market during COVID-19 and beyond, please know that Cushman Realty is following the Minnesota Department of Health (MDH) guidelines, State and Federal government recommendations, as well as adhering to our real estate governing bodies which oversee the industry (local, state, and national). Rest assured that no matter the real estate market conditions, we will weather this storm while providing you the best customer service that you’d expect from your Realtor.

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Where Real Estate Meets Your Needs

The timing of our relaunch is quite unique. Having been in the real estate industry for almost two decades, Cushman Realty has witnessed, weathered, and prevailed through the ups and down of real estate. As the real estate market ebbed and flowed from buyer, to seller, to the Great Recession, back to a seller market with limited inventory, and now the uncertainty of the COVID-19, and post COVID-19, Cushman Realty has learned how to successfully navigate the market by adjusting, adapting, and being flexible through the changing market conditions. We built a solid foundation with years of experience, knowledge, and expertise, along with hundreds of closed transactions to refer to, as we work to negotiate on each client’s behalf.

Where Real Estate Meets Your Needs has always been our core mission. No two clients or transactions are alike, and each client and transaction has specific needs required for the sale or purchase of your home. We are here for you as the market conditions continue to change.

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Hello and Welcome

Thank you for taking the time to stop by Cushman Realty’s first ever blog, and welcome to the relaunch of CushmanRealty.com!

We are excited to begin this new chapter and interact with you more frequently. Our hope is that you will find this blog to be informative, giving you up to date content about real estate. Cushman Realty’s goal is to make you, the consumer, as thoroughly educated as possible about the one of the largest financial decision’s you’ll ever make.

Please feel free to let us know what you’d like to learn more about, and we’ll be sure to get that information to you. Send us an email at hello@cushmanrealty.com

Once again, thank you for stopping by!