The “MGIC/MAAR Home Payment Report” is a quarterly overview of typical monthly payments on homes recently sold in the Twin Cities’ 50 most active real estate markets. Agents can download the report and forward it to prospects or include it in their own marketing pieces.
The report is produced through a partnership between MAAR and MGIC Corporation, one of the country’s leading private mortgage insurers. It combines home sale prices, property tax rates and interest rate data to give consumers a good feel for what their monthly home payment would be on lower-priced, mid-priced and higher-priced homes in 50 markets ranging from Andover to Woodbury.
“Educating consumers on housing affordability and the costs and benefits of owning versus renting is key to sound decision-making,” says David Arbit, MAAR director of research & economics. “We’re delighted to be working with MGIC to bring this useful new quarterly report to our members and the public.”
The big story of 2017 was threefold: the median sales price reached an all-time high; closed sales reached a 12-year high; and inventory levels reached a 15-year low. Sales nearly broke their all-time record, but fell just short of their all-time 2004 high. In February 2018, new listings posted a year-over-year decline for a fourth consecutive month. Mostly due to the supply shortage, closed sales were lower compared to the year prior for a third consecutive month. For-sale housing supply (inventory) was 23.0 percent lower than February 2017. This shortage has created a competitive environment where multiple offers have become commonplace. Sellers are receiving strong offers close to their original list price in record time, which can sometimes frustrate home buyers. New construction closed sales rose 15.7 percent compared to last February. Although single-family homes made up about 73.0 percent of all sales, condos and townhomes showed the strongest increase in closed sales. Similarly, previously-owned homes made up about 88.7 percent of sales but new construction showed a much stronger increase in pending and closed purchase activity.
February 2018 by the Numbers
Sellers listed 5,072 properties on the market, an 8.0 percent decrease from February 2017
Buyers closed on 2,635 homes, a 6.0 percent decrease from 2017
Inventory levels for February fell 23.0 percent compared to 2017 to 7,537 units, near a 15-year low
Months Supply of Inventory was down 21.1 percent to 1.5 months, also near a 15-year low
The Median Sales Price rose 12.7 percent to $250,000, a record high for February
Cumulative Days on Market declined 15.9 percent to 69 days, on average (median of 38)—a 12-year low
Changes in sales activity varied by market segment o Single-family sales fell 8.3 percent; condo sales rose 1.9 percent; townhome sales rose 6.3 percent
Traditional sales fell 1.3 percent; foreclosure sales fell 43.3 percent; short sales fell 39.6 percent
Previously-owned sales fell 6.3 percent; new construction sales rose 15.7 percent
“The 50th anniversary of the Fair Housing Act represents an opportunity to remind ourselves not only of the importance of the law in shaping the real estate landscape today, but also to look back on what the situation was like before it was enacted, when the process of buying or renting a home was decidedly unfair for millions of Americans.”
A REALTOR® at Exit Realty Metro, Pat Paulson was presented with the 2018 REALTOR® of the Year award by the Minneapolis Area Association of REALTORS® (MAAR) in recognition of his commitment to the association, the real estate community and the community at large. This prestigious award is MAAR’s way of showing appreciation to members for their volunteerism in the association and community who display sincere commitment and devotion to the residential real estate industry.
Pat is active with the local, state and national REALTOR® associations. On the local level, he served on the MAAR Diversity, International Council, Government Affairs, Finance, and chaired the Research and Nominating Committees. He also served on the Board of Directors and as past president. At the Minnesota Association of REALTORS® (MNAR), he has served on the MNAR Professional Standards, Government Affairs, Finance, Executive Committees and Board of Directors. At the national level, he serves on the Federal Taxation Committee and Board of Directors.
Most of Pat’s volunteer work has been for REALTOR® associations, but he is active outside of the association as a Homestretch class teacher and on the Wirth Coop Board of Directors. He also teaches the Korean martial art of Tae Kwon Do to children and adults.
The REALTOR® of the Year recipient is allotted a $1,000 charitable gift. Pat has selected the organization Wirth Cooperative Grocery; a food co-op owned by its members and exists to serve its members in North Minneapolis. Their passion is to provide accessible food, bring new life into the neighborhood and boost the local economy.
“Pat is most deserving of this award,” said Carson Brooks, broker/owner of EXIT Realty Metro. “He operates as a quiet, intelligent, and thoughtful force working on behalf of homeownership rights, mentoring REALTOR®, and building better analytical tools for our industry.”
In 32 years, Pat has sold hundreds of homes. He builds his business around high-level client service, including prompt response and communication, relevant information, advocacy, problem solving and follow up. Much of his business focuses on emerging markets and low to moderate income households. He also teaches continuing education and provides consulting relating to the real estate industry.
“Real estate is a competitive and collaborative industry,” Pat Paulson says. “REALTORS® come together as an industry to advocate for private property rights, and to cultivate and maintain an organized real estate market. I passionately embrace this collective cause. I’ve joined with my colleagues to create an environment in which the public has access to the information they need and can feel safe about their investment in real estate, their home.”