In-person gatherings suspended through 12/31/20. Office hours: VIRTUAL (phone, email) 8-4:30 M-F, NO CONTACT (online purchase pick-up) Tuesdays 1:30-4:30 and Thursdays 9-12:30.

Q2 – 2018 Home Payment Report

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.”

Slightly less activity yet higher prices in less time

Housing demand is strong and supply is low. That’s been the story for a few years. But there is some early evidence that things could be starting to loosen up. That said, buyers shopping this spring will still face stiff competition. The lack of inventory combined with rising prices is encouraging some sellers to stay put; however, the move up market offers a bit more inventory. This combined with historically low interest rates creates a perfect opportunity for homeowners looking to move up.

In April, sellers listed 7.2 percent fewer homes on the market—the sixth consecutive month of declines compared to a year ago. Largely due to the shortage, closed sales declined 5.2 percent compared to the prior year. For-sale housing inventory was 25.1 percent lower than April 2017. This shortage, which is particularly acute at the entry-level prices, has created a competitive environment where multiple offers and homes selling for over list price have become more common. Sellers are often receiving strong offers close to their original list price quickly, which can sometimes frustrate home buyers.

New construction closed sales rose 13.2 percent compared to last April. Although single family homes made up about 73.0 percent of all sales, townhomes and condos have seen stronger demand lately. Similarly, previously-owned homes made up about 90.0 percent of sales, but new construction showed a much stronger increase in pending and closed purchase activity. The average time on market is still 53 days, reminding sellers that they still need to stage and price their homes well. 

April 2018 by the Numbers (compared to a year ago)
• Sellers listed 7,321 properties on the market, a 7.2 percent decrease
• Buyers closed on 4,635 homes, a 5.2 percent decrease
• Inventory levels for April fell 25.1 percent compared to 2017 to 8,958 units
• Months Supply of Inventory was down 25.0 percent to 1.8 months
• The Median Sales Price rose 8.6 percent to $266,000, a record high for April
• Cumulative Days on Market declined 10.2 percent to 53 days, on average (median of 18)
• Changes in Sales activity varied by market segment

  • Single family sales declined 6.4 percent; condo sales rose 3.0 percent; townhome sales rose 1.0 percent
  • Traditional sales fell 2.8 percent; foreclosure sales decreased 43.3 percent; short sales fell 20.0 percent
  • Previously-owned sales fell 5.6 percent; new construction sales rose 13.2 percent

Mixed Spring: Activity cools while prices, market times remain hot

From colder-than-average temperatures to a record-breaking snow storm, this spring has been anything but normal. While those searching for homes have seen more options since January or February, they’re still seeing fewer options compared to last year. That’s capped sales activity—particularly at the entry-level prices—and the lack of inventory combined with rising prices is encouraging some sellers to hold onto their properties.

In March, sellers listed 17.5 percent fewer homes on the market—the fifth consecutive month of declines compared to a year ago. Largely due to the shortage, closed sales declined 10.3 percent compared to the year prior. For-sale housing inventory was 26.1 percent lower than March 2017, the largest decline in over a year. This shortage has created a competitive environment where multiple offers and homes selling for over list price have become more common.

Sellers are receiving strong offers close to their original list price quickly, which can sometimes frustrate home buyers. New construction closed sales rose 13.1 percent compared to last March. Although single family homes made up about 74.0 percent of all sales, townhomes have enjoyed more resilient demand lately. Similarly, previously-owned homes made up about 89.0 percent of sales but new construction showed a much stronger increase in pending and closed purchase activity.

“We’re seeing some early evidence that the seller’s market could be starting to shift toward a balanced market,” said Kath Hammerseng, President of the Minneapolis Area Association of REALTORS® (MAAR), “When it comes to the long-term health of the housing market, that’s very much a good thing.”

March 2018 by the Numbers (compared to a year ago)

  • Sellers listed 6,737 properties on the market, a 17.5 percent decrease
  • Buyers closed on 3,978 homes, a 10.3 percent decrease
  • Inventory levels for March fell 26.1 percent compared to 2017 to 8,289 units
  • Months Supply of Inventory was down 22.7 percent to 1.7 months
  • The Median Sales Price rose 9.8 percent to $258,000, a record high for March
  • Cumulative Days on Market declined 21.9 percent to 57 days, on average (median of 22)
  • Changes in Sales activity varied by market segment:
    • Single family sales fell 9.8 percent; condo sales declined 10.0 percent; townhome sales shrank 9.6 percent
    • Traditional sales fell 7.5 percent; foreclosure sales decreased 39.3 percent; short sales fell 47.3 percent
    • Previously-owned sales fell 11.4 percent; new construction sales rose 13.1 percent

“Prices continue to rise while market times remain brisk,” said Todd Urbanski, President-Elect of MAAR. “This spring market is shaping to be more buyer-friendly than last year, it’s still a great time to get properties listed.”

Congratulations to our 2018 Scholarship Recipients

Congratulations to our 2018 Scholarship Recipients.

Ken Colston and Lyndon Smith received the Jean Leake Emerging Markets Scholarship and Susan Jackson was awarded the Ann Brockhouse Future Leader Scholarship. Recipients will meet with Minnesota legislators, walk the halls of the Capitol while attending the National Association of REALTORS® Legislative Meetings and Trade Expo in Washington D.C . held in May. 

Read more on the scholarship program and consider applying for the 2019 scholarship program by December 1. 

Q1 – 2018 Home Payment Report

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.”

 
 

Sales down in early spring market while prices rally

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

 

NAR Commemorates the 50th Anniversary of the Fair Housing Act

Excerpt:

“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.” 

You Can’t Live Here: The Enduring Impacts of Restrictive Covenants

There is no America without diversity flyer

Pat Paulson Named 2018 Minneapolis Area REALTOR® of the Year

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. 

Pat Paulson pictured with Snow Aukema, Wirth Co-op General Manager and Roya Damsaz, Wirth Co-op President

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.”

Sluggish start to 2018 after a record 2017

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 12 units short of their all-time 2004 high. In January 2018, new listings posted a year-over-year decline for a third consecutive month. Because of the supply shortage, closed sales were lower compared to the year prior for a second consecutive month. For-sale housing supply (inventory) was about a quarter lower than January 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 pending sales rose nearly 14.0 percent compared to last January. Although single-family homes made up about 76.0 percent of all sales, townhomes were the only segment to show an increase in pending sales. Similarly, previously-owned homes made up about 91.0 percent of sales but new construction showed a much stronger increase in pending purchase activity.

January 2018 by the Numbers

• Sellers listed 4,041 properties on the market, a 7.8 percent decrease from January 2017
• Buyers closed on 2,758 homes, a 4.4 percent decrease from 2017
• Inventory levels for January fell 26.3 percent compared to 2017 to 6,875 units, near a 15-year low
• Months Supply of Inventory was down 27.8 percent to 1.3 months, a 15-year low
• The Median Sales Price rose 9.6 percent to $243,750, a record high for January
• Cumulative Days on Market declined 13.8 percent to 69 days, on average (median of 45)—a 12-year low
• Changes in sales activity varied by market segment

o Single-family sales fell 1.3 percent; condo sales fell 15.1 percent; townhome sales fell 8.5 percent
o Traditional sales fell 1.7 percent; foreclosure sales fell 21.8 percent; short sales fell 42.4 percent
o Previously-owned sales fell 3.8 percent; new construction sales fell 0.4 percent

 

 

MAAR Seeks Realtor Emeritus Members

To honor longevity as a REALTOR® member, we offer the REALTOR® Emeritus Program  

Please email moc.rotlaerslpmnull@ofni by March 15, 2018 if you meet the criteria below and are interested in joining the program.

A REALTOR® Member who has held membership in the National Association as a REALTOR®, REALTOR-ASSOCIATE®, or both, for a cumulative period of forty (40) years is eligible for REALTOR® Emeritus status. 
 
In addition to the forty (40) years of membership, a REALTOR® Emeritus candidate member must also have completed at least one (1) year of service at the National Association level. However, for applications filed through 2019, the one (1) year service requirement may also be met through service at the state or local level. This provision will sunset at the end of 2019.
 
Upon approval of an application for REALTOR® Emeritus by the Board of Directors of the National Association of REALTORS®, no further payment of dues to the National Association is necessary by the member association of which the REALTOR® Emeritus is a member. Please note that the dues waiver does not take effect until the dues year immediately following the Board of Directors’ approval. In addition, REALTOR® Emeritus Members are exempt from the Code of Ethics Training requirement.