July, 2022 - Cushman Realty

Jul 15 No Comments

June 2022 Housing Report

Author: Tracy Cushman

Categories: News

Median sales price climbs and number of overall homes for sale rises

MINNEAPOLIS (July 15, 2022) — In June, closed sales of homes declined by nearly 14% compared to a year ago, with a total of 9,208 properties sold across the state. New listings were down 6.4% year-over-year even as the total number of homes for sale increased 8.2% to 12,298 properties. Overall housing inventory increased significantly, up 21.4% over last June to 1.7 months’ supply of homes on the market. Despite softening activity relative to last year, consumer demand drove the median sales price up 6.2% to $345,000, and the average price increased 9% to $401,319. Sellers were still receiving an average of 102.5% of their asking price, although this marks a slight 0.7% decline compared to June of last year.

“Although new listings were down, the state’s total housing supply was up, drawing more prospective buyers into the market,” said Chris Galler, CEO of Minnesota Realtors. “As we look at the decline in closed sales, it’s important to remember that these numbers are relative to last June’s abnormally heated market. What we are seeing this month is more closely aligned with historical norms for this time of year. Still, as higher interest rates and inflation continued to play a role, many first-time buyers were sidelined. The buyers who are successfully competing have the money to stay in the game. This dynamic is unlikely to change until we can help more buyers close the gap with tools like downpayment assistance, and broadly increase construction of more affordable homes.”

June year-over-year summary of key market indicators:

Closed sales decreased 13.7% to 9,208
Median sales price increased 6.2% to $345,000
Average sales price increased 9.0% to $401,319
New listings decreased 6.4% to 11,417
Pending sales decreased 16.6% to 8,124
Days on the market decreased 8.0% to 23 days
Homes for sale increased 8.2% to 12,298

Closed Home Sales Across Minnesota by Region

In June, closed sales declined in 11 out of 13 regions compared to a year ago, bringing Minnesota’s average number of closed home sales down 13.7% year over year. Only one region reported an increase: North Central at 5.9%. The smallest declines were seen in Headwaters at 1.5%, Southwest Central at 5.1%, and Arrowhead at 9.7%. The largest declines were reported in the 7-County Twin Cities at 16.0%, East Central at 18.8% and Northwest Central at 20.7%. See the chart below for more details comparing closed home sales for June 2022 to June 2021.

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.

View full regional and county reports here.

View statewide report here.

Jul 07 No Comments

Cool Your Home and Lower Costs

Author: Tracy Cushman

Categories: Homeowner Tips

By MNR News

Summer can feel like a tropical paradise for Minnesotans. The sun stays out longer and so do the people—who can blame us? Whether you’re weekending up north at the cabin, lounging on the lake, or grilling in the backyard, Minnesota summers are all about soaking up the sun in the great outdoors.

But the warmth of the sun brings with it rising indoor temperatures, humidity, and perhaps worst of all: higher home energy costs. Approximately 30% of your monthly summer utility bill comes from the energy it takes to cool your home. The national increase in utility costs has made it feel like homeowners must choose between comfort and savings when spending time indoors.

Though there’s the promise of a heat-rejecting, ultra-white exterior paint that could replace air conditioning systems entirely—that future is not quite here. Short of waiting for the next technology breakthrough, you might be wondering: How can I balance staying cool at home while not sweating my energy bill this summer?

Thankfully, you don’t need to dry out your savings to reduce home energy costs. There are a variety of quick and inexpensive ways to get your thermometer needle moving in the right direction.

Air Conditioning System

On average, running an air conditioner costs about $0.55 per hour, which comes out to about $5.55 per day. Those costs can add up quickly, so it’s critical to make sure your physical air conditioning unit and HVAC systems are functioning at the highest level of efficiency.

Get an A/C system inspection. These inspections feel costly upfront, but experts can help you identify repairs before they’re needed, potentially saving you thousands of dollars over the lifespan of your cooling system.
Clear debris from the physical outdoor A/C unit. Check for unwelcome pests, leaves, and other yard waste that may be obstructing your unit from doing its job.
Replace the HVAC air filter in your furnace or air vent filters every 30-90 days. Cleaner filters allow air to flow more freely through your system.

Thermostat

The thermostat holds a lot of power in keeping your home cool. Knowing when and how to set the temperature makes a difference in your bill.

Program your thermostat. Most homes now have programmable thermostats, which save on average about $180 per year on your utility bill. Set your thermostats to reduce the temperature at specific times of the day, so you’re saving energy for the times you need it most. Purchasing and installing programmable thermostats for the first time can be done for under $600.
One degree. Think about temperature in increments. If you can handle setting your A/C system to 73 instead of 72, you’re already saving money. Each higher degree you set your thermostat in the summer equals savings.

Windows and Doors

Proper window and door use in the summer can make a major difference in regulating the overall temperature of your home.

Keep your windows closed on hot days; open on cool nights to get more air circulation.
Draw the blinds or curtains whenever possible during the daytime hours. This helps keep direct sunlight from entering rooms. Pale or lighter-colored blinds and curtains do not absorb as much heat as darker colors.
Install or apply heat-reducing films to windows, including door windows. These reflective materials come in all shapes and sizes for whatever window you need to cover, plus they are generally inexpensive to purchase and easy to install.
Inspect and seal noticeable gaps around door and window frames. Install draft guards to the bottom of your doors. This will help ensure the cool air can’t escape and the hot, humid air can’t force its way inside.

Fans

It’s time to dispel a myth. Fans don’t make a room cooler, but they do make it feel cooler. This feeling can make all the difference on a muggy summer day at home.

Set your ceiling fan to run counterclockwise in the summer to draw the cooler air upwards; this will create a cooling effect in the room.
Don’t have ceiling fans? Try setting up a box fan in front of a window to keep the air in a room circulating.
Turn off fans when you leave home. This will cut down on electricity use.
Run your bathroom exhaust fans whenever you’re at home. Doing so will expel the rising warm air to the exterior of your home.

Plant, Purchase and Use Shade Foliage

Whether you’ve got a green thumb or not, strategically planting shade trees or foliage that covers windows can also regulate interior temperatures, while beautifying your home’s exterior.

Oak, Maple, and Elm trees are among the most popular shade trees in Minnesota. Oaks are some of the fastest-growing tall trees, taking only a few years to create enough cool shade for an entire yard.
Get large house plants or foliage and place them strategically in front of windows or spaces that get a lot of sunlight.

Finding ways to inexpensively cool your home this summer is possible despite rising utility costs. These practical tips provide savings that can last over the (all too short) Minnesota summer.

Jul 04 No Comments