July 2017 Minneapolis & St. Paul Housing Update

The data (courtesy of MAAR) for July 2017 is in, and the results are consistent with what we’ve been seeing for quite some time. The data – compared with one year prior, in July 2016 – are as follows;
1. New Inventory for the month is down, by -3.9%
2. Housing inventory – overall – is down, by -18.3%
3. The median sales price is up, by +5.9%
4. Closed sales are down, by -2.6%

There are many, pre-approved buyers, ready to purchase. The issue is inventory. Certainly the lower levels of inventory put upward pressure on pricing. +5.9% is above average (in a balanced market, it should be @ 3.0%, +/-).

I also hear the same thing among friends of mine in the Realtor and Lending world; inventory is the issue. And this is not a new thing.

Lastly, this inventory problem is NOT predicted to change, anytime soon.

Interest Rates Increase Slows Down Recent Mortgage Refinance Run

This article – from Mortgage News Daily – lays out details on the recent uptick in interest rates, which has slowed down volume of the recent refinance run. This most recent refinance run lasted roughly 3-4 months. It was good for both the lending, and the title side, but now we’re back to the usual, spring uptick in rates – similar to the usual spring uptick in gas prices (supply and demand…somewhat).

Mortgage Interest Rates Update

Mortgage rates are remaining relatively unchanged (still very low) for time being, but volatility is expected ahead.

Please read this informative article, courtesy of Mortgage News Daily – which lays out how rates are not responding to bond markets as they traditionally do – which is certainly advantageous to those looking to buy or refinance. Either way, mortgage interest rates are at near historic lows – with most rates in the higher 3 percent range. Phenom!

Market Update

Courtesy of the Minneapolis Area Association of Realtors (MAAR): Please see this video from February
from MAAR. What is discussed, are some of the very encouraging sales statistics, when comparing the Minneapolis/ St. Paul Metro area for January 2016, with one year ago, in January 2015:

  • Home prices are up.
  • Total Home sales are up; ‘Pending’ (sold, but not yet closed) sales increased +3.5%. Closed sales are up 17.8% (be careful with this stat), for a total of 2,799 home sales in our local market for January ’16.
  • Low Inventory continues to be a drag on sales in our market – there are simply not enough homes for the buyers out there, and it’s potentially looking like a strong, sellers market again, with a mere 2.1 months of inventory. This is a 22.2% decrease in inventory from one year ago, in January, 2015.
  • The percent of original list price received at the sale increased year over year; for January 2015, sellers were receiving a full 95% of the original list price at sale (see inventory problem; the two are related).

Anyhow, enjoy this short video from MAAR:

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