Category Archives: The Skinny

Early 2019 Weakness Proving Temporary; Market Back On Track

June 18, 2019

There have been two disruptions to the housing market over the last nine months, but their effects are proving short-lived. First, a sudden increase in interest rates in late 2018 weighed on December and January sales activity. Second, record snow and the subsequent melt in February and March of this year weighed on sales activity in March and April. But May numbers are showing growth in seller activity, pending and closed buyer activity as well as quicker market times and rising prices.

Prices reached a new all-time high of $285,000. New listings rose 2.4 percent while closed sales were up 3.0 percent. After two months of increases, market times sped up by 4.3 percent compared to May 2018. The ratio of sold to list price fell for a fourth consecutive month, but by the smallest amount since February. In conjunction with other indicators, the market is improving for buyers, even though sellers still enjoy strong pricing power, favorable negotiating leverage and quick market times. For the last nine months, buyers have seen more active listings for sale than the year prior. Mortgage rates remain very attractive at around 3.85 percent on a 30-year fixed loan—far lower than anyone predicted by this time. We still have a tale of two markets: strong demand, weak supply and price growth in the affordable brackets but oversupply and slow market times in the upper brackets.

May 2019 by the Numbers (compared to a year ago)

  • Sellers listed 9,402 properties on the market, a 2.4 percent increase from last May
  • Buyers closed on 6,000 homes, a 3.0 percent increase
  • Inventory levels for May increased 0.5 percent compared to 2018 to 11,327 units
  • Months Supply of Inventory was flat at 3 months
  • The Median Sales Price rose 5.2 percent to $285,000, a record high for any month
  • Cumulative Days on Market decreased 4.3 percent to 45 days, on average (median of 17)
  • Changes in Sales activity varied by market segment
    • Single family sales rose 2.7 percent; condo sales rallied 9.9 percent; townhome sales increased 3.1 percent
    • Traditional sales increased 4.4 percent; foreclosure sales declined 26.8 percent; short sales fell 28.6 percent
    • Previously-owned sales were up 2.9 percent; new construction sales surged 10.5 percent

Quotables

“We’re still seeing some rebalancing, but it just isn’t as dire as some want us to believe,” said Todd Urbanski, President of Minneapolis Area REALTORS®. “Rates under 4.0 percent is a significant motivator for buyers.”

“Not everyone understands that all real estate is local,” said Linda Rogers, President-Elect of Minneapolis Area REALTORS®. “Shifts in other regions have very little impact on our local market dynamics.”
From The Skinny Blog.

Prices rising, pending sales stable amidst market rebalancing

Gardeners aren’t the only ones struggling with spring weather this year. The season’s late start and temperature swings suppressed housing market activity early this year, but those effects are moderating. The latest numbers for Twin Cities residential real estate show some strength amidst ongoing signs of change. Prices reached a new record of $281,000. New listings reversed course and rose 4.5 percent. Closed sales were down about 7.0 percent though pending sales—a measure of future closings—fell just 1.1 percent. Market times rose 5.7 percent year-over-year, the second increase since March 2015. Another sign of a changing market is the ratio of sold to list price has fallen for five of the last six months. In conjunction with other indicators, this suggests the market is improving for buyers, even though sellers still have strong pricing power, favorable negotiating leverage and quick market times.

The number of active listings for sale decreased slightly compared to the prior year. Even so, buyers have seen inventory gains for seven of the last eight months. After seven months of gains, months supply was flat at 2.0 months, suggesting the market is still undersupplied. Well-priced, turnkey properties continue to be highly sought-after. Mortgage rates remain cooperative at around 4.1 percent, which is good news for buyers. The market is tightest at the entry-level prices, where multiple offers and homes selling for over list price are commonplace. The move-up and upper-bracket segments are less competitive and better supplied.

April 2019 by the Numbers (compared to a year ago)

Sellers listed 7,679 properties on the market, a 4.5 percent increase from last April
Buyers closed on 4,384 homes, a 6.9 percent decrease
Inventory levels for April declined 1.2 percent compared to 2018 to 9,667 units
Months Supply of Inventory was flat at 2.0 months
The Median Sales Price rose 5.2 percent to $281,000, a record high for any month
Cumulative Days on Market rose 5.7 percent to 56 days, on average (median of 21)
Changes in Sales activity varied by market segment

Single family sales declined 7.1 percent; condo sales rose 9.1 percent; townhome sales fell 9.1 percent
Traditional sales decreased 5.2 percent; foreclosure sales declined 30.3 percent; short sales fell 38.9 percent
Previously-owned sales were down 8.9 percent; new construction sales surged 20.3 percent

Quotables

“Things still seem to be rebalancing a bit,” said Todd Urbanski, President of Minneapolis Area REALTORS®. “Low and stable rates have definitely helped, and so has the ongoing economic expansion.”

“We’re doing better here than many other parts of the country,” said Linda Rogers, President-Elect of Minneapolis Area REALTORS®. “It’s important for buyers and sellers to understand local dynamics, not national headlines.”

All information is according to the Minneapolis Area REALTORS® based on data from NorthstarMLS. Minneapolis Area REALTORS® is the leading regional advocate and provider of information services and research on the real estate industry for brokers, real estate professionals and the public. We serve the Twin Cities 16-county metro area and western Wisconsin.

From The Skinny Blog.

Buyer and seller activity down; weather partly to blame

If February was the month of record snowfall, March was the month of record wet basements. The effects of extreme weather continue to impact the market. Despite that, the latest numbers for Twin Cities residential real estate show some strength amidst ongoing signs of change. Prices continued to climb, reaching a new record. New listings fell 8.8 percent as fewer sellers listed their properties. Closed sales were down 9.3 percent as some buyers waited on soggy properties as well as additional inventory options. Market times rose year-over-year for the first time since March 2015. Another sign of a changing market is the ratio of sold to list price has fallen for four of the last five months. This—along with other indicators—suggest the market is improving for buyers, even though sellers still have strong pricing power, favorable negotiating leverage and quick market times.

The number of active listings for sale decreased compared to the prior year. Even so, buyers have seen inventory gains for five of the last six months. Months supply, however, was flat at 1.8 months, suggesting the market is still tight but realigning. Buyers should still expect competition on the most coveted listings. After touching 5.0 percent in November, mortgage rates have settled back down around 4.1 percent, which is great news for buyers. The supply squeeze is most evident at the entry-level prices, where multiple offers and homes selling for over list price are commonplace. The move-up and upper-bracket segments are less competitive and better supplied.

March 2019 by the Numbers (compared to a year ago)

  • Sellers listed 6,160 properties on the market, an 8.8 percent decrease from last March
  • Buyers closed on 3,673 homes, a 9.3 percent decrease
  • Inventory levels for March declined 4.2 percent compared to 2018 to 8,685 units
  • Months Supply of Inventory was flat at 1.8 months
  • “There’s plenty of buyers and sellers out there looking to get deals done,” said Linda Rogers, President-Elect of Minneapolis Area REALTORS®. “If rates and inventory cooperate, we’re still anticipating a solid year.”
  • The Median Sales Price rose 6.5 percent to $275,000, a record high for any month
  • Cumulative Days on Market rose 15.8 percent to 66 days, on average (median of 30)
  • Changes in Sales activity varied by market segment
    • Single family sales declined 7.2 percent; condo sales sank 16.5 percent; townhome sales fell 12.2 percent
    • Traditional sales decreased 7.9 percent; foreclosure sales declined 26.8 percent; short sales fell 32.3 percent
    • Previously-owned sales were down 10.1 percent; new construction sales rose 2.3 percent

    Quotables

    “The extremes of February and March are still noticeable,” said Todd Urbanski, President of Minneapolis Area REALTORS®. “It’s difficult to disentangle weather-induced market shifts with organic market shifts.”

    All information is according to the Minneapolis Area REALTORS® based on data from NorthstarMLS. Minneapolis Area REALTORS® is the leading regional advocate and provider of information services and research on the real estate industry for brokers, real estate professionals and the public. We serve the Twin Cities 16-county metro area and western Wisconsin.
    From The Skinny Blog.

Extreme February Weather Leaves Dent on Residential Market Stats

Winter sports enthusiasts likely enjoyed the snowiest February on record more than those attempting to buy and sell homes. Even so, the latest numbers for Twin Cities residential real estate show some strength amidst ongoing signs of change. Sellers showed a sizeable, weather-related decline in listing activity, while buyers entered into fewer contracts than last February even while closed sales rose. Market times flattened out as the median sales price continued to rise compared to last year. One sign of a changing market is the fact that the ratio of sold to list price has fallen for three of the last four months. This—along with other indicators—suggest the market is improving for buyers, even though sellers still have strong pricing, favorable negotiating leverage and quick market times.

Due to the decline in new listings, the number of active listings for sale decreased compared to the prior year. Even so, buyers have seen inventory gains for four of the last five months. Months supply followed suit, tick down to 1.6 months, suggesting the market is still tight. Buyers should expect competition on the most sought-after listings and neighborhoods. After increasing to 5.0 percent in November, mortgage rates have settled back down around 4.5 percent. That’s great news for buyers. The supply squeeze is most evident at the entry-level prices, where multiple offers and homes selling for over list price are commonplace. The move-up and upper-bracket segments are less competitive and better supplied. Inventory could rise substantially, and we’d still have a balanced market.

February 2019 by the Numbers (compared to a year ago)

Sellers listed 4,355 properties on the market, a 14.3 percent decrease from last February
Buyers closed on 2,798 homes, a 4.0 percent increase
Inventory levels for February declined 5.7 percent compared to 2018 to 7,936 units
Months Supply of Inventory decreased 5.9 percent to 1.6 months
The Median Sales Price rose 6.2 percent to $265,500, a record high for February
Cumulative Days on Market was flat at 69 days, on average (median of 43)
Changes in Sales activity varied by market segment

Single family sales rose 6.7 percent; condo sales fell 0.9 percent; townhome sales increased 1.0 percent
Traditional sales increased 7.4 percent; foreclosure sales sank 40.3 percent; short sales fell 41.4 percent
Previously-owned sales were up 4.7 percent; new construction sales rose 5.3 percent

Quotables

“The cold and snow in February was certainly an impediment,” said Todd Urbanski, President of Minneapolis Area REALTORS®. “The March numbers will offer more clarity on market direction.”

“We’re still sensing plenty of interest from buyers and sellers,” said Linda Rogers, President-Elect of Minneapolis Area REALTORS®. “This spring market should be productive, especially with more inventory.”

All information is according to the Minneapolis Area REALTORS® based on data from NorthstarMLS. Minneapolis Area REALTORS® is the leading regional advocate and provider of information services and research on the real estate industry for brokers, real estate professionals and the public. We serve the Twin Cities 16-county metro area and western Wisconsin.

A mostly strong start to the year

By David Arbit on Tuesday, February 19th, 2019

The latest numbers show that 2019 was off to a good start for TwinCities residential real estate. Sellers produced another increase in listing activity, while buyers entered into more contracts than last January even while closed sales fell. Market times continued to shrink as the median sold home price rose compared to last year. After two months of declines, the ratio of sold to list price rose slightly in January. There are some early indications the market is improving for buyers, even though sellers still have strong negotiating leverage and quick market times.

The number of active listings for sale has increased compared to the prior year. Buyers have seen inventory gains for four consecutive months. Months supply also ticked up to 1.6 months, suggesting the market is still tight but rebalancing and normalizing. After increasing to 5.0 percent in November, mortgage rates have settled back down around 4.5 percent. The lack of supply is especially noticeable at the entry-level prices, where multiple offers and homes selling for over list price are commonplace. The move-up and upper-bracket segments are less competitive and better supplied. Inventory could rise substantially, and we’d still have a balanced market.

January 2019 by the Numbers
(compared to a year ago)

Sellers listed 4,359 properties on the market, a 7.8 percent increase from last January
Buyers closed on 2,681 homes, a 4.6 percent decrease
Inventory levels for January rose 1.1 percent compared to 2018 to 7,828 units
Months Supply of Inventory increased 6.7 percent to 1.6 months
– The Median Sales Price rose 6.1 percent to $258,900, a record high for January
– Cumulative Days on Market declined 5.8 percent to 65 days, on average (median of 44)
– Changes in Sales activity varied by market segment:
Single family sales fell 5.2 percent; condo sales rose 5.3 percent; townhome sales declined 2.9 percent
Traditional sales decreased 1.4 percent; foreclosure sales sank 50.3 percent; short sales were flat
Previously-owned sales were down 5.5 percent; new construction sales ramped up by 12.8 percent

Quotables

“We’re still very much undersupplied locally and nationally,” said Todd Urbanski, President of Minneapolis Area REALTORS®. “We’re expecting 2019 to be a good year for both buyers and sellers.”

“Our data shows slightly more inventory, and rates are down from where they were at the end of last year,” said Linda Rogers, President-Elect of Minneapolis Area REALTORS®. “Buyers should know that they’re going to find more options out there this spring and summer.”

All information is according to the Minneapolis Area REALTORS® based on data from NorthstarMLS. Minneapolis Area REALTORS® is the leading regional advocate and provider of information services and research on the real estate industry for brokers, real estate professionals and the public. We serve the Twin Cities 16-county metro area and western Wisconsin.
From The Skinny Blog.

Home Prices Reach Record High; Sales Down but Inventory Up

By David Arbit on Tuesday, January 22nd, 2019

2018 ANNUAL WRAP-UP
Beauty is in the eye of the beholder. Sometimes, so are market statistics. For sellers, the big stories of 2018 were three records: prices, market times and percent of list price received at sale. For buyers, the major themes were increased new listings toward year-end, an annual inventory increase, changing interest rates and affordability pressure. Driven by sizable gains in new listings later in 2018 combined with moderating sales, for-sale housing supply finally bounced off its 15-year low. The ongoing housing shortage has created a competitive environment where multiple offers have become common. Thus, sellers are receiving strong offers in record time, but this fast-paced market can frustrate some consumers. Market times continued to shrink while absorption rates remained tight but showed signs of easing. Mortgage rates on a 30-year fixed loan started the year around 4.0 percent but touched 5.0 percent before settling on 4.5 percent. Foreclosure activity fell for a seventh straight year and is back around 2005 levels. Although single-family homes made up about 74.0 percent of all sales, both townhomes and condos had better sales performances. Similarly, previously-owned homes made up about 91.0 percent of sales but new construction showed a much stronger gain.

2018 BY THE NUMBERS
Sellers listed 75,969 properties on the market, a 0.3 percent decrease from 2017
Buyers closed on 59,189 homes, a 3.4 percent decrease from 2017 yet the 4th highest figure since 2003
Inventory levels for December rose 4.5 percent compared to 2017 to 8,128 units, reversing 3 years of declines
Months Supply of Inventory was up 8.5 percent to 1.7 months, also the first increase since 2014
-The Median Sales Price rose 7.7 percent to $265,000, an all-time record high
-Cumulative Days on Market declined 14.3 percent to 48 days, on average (median of 22)—a 12-year record low
Changes in sales activity varied by market segment

Single-family sales decreased 4.2 percent; condo sales rose 5.4 percent; townhome sales fell 3.3 percent
Traditional sales declined 2.0 percent; foreclosure sales fell 38.0 percent; short sales were down 36.2 percent
Previously-owned sales decreased 4.7 percent; new construction sales rose 12.7 percent

POIGNANT QUOTABLES
“The year definitely had some ups and downs. Beyond record prices and lower-but-still-strong sales, inventory finally turned around while some affordability concerns persisted. Our region is extremely high-performing when it comes to homeownership, employment, income, education, civic engagement and quality of life. Despite some manageable headwinds, homeownership and real estate is still a compelling investment for Minnesota,” said Todd Urbanski, President of the Minneapolis Area REALTORS®.

“Last year homebuyers became more selective even as market times shrank. Working with a REALTOR® was key as inventory was often limited,” said Patti Jo Fitzpatrick, President of the Saint Paul Area Association of REALTORS®. “We still saw some challenges around inventory and downsizing. We anticipate more balance this year as inventory eases. It’ll be interesting to see how things play out.”

CHARTING THE MARKET

Sellers posted a third consecutive decrease in activity but showed signs of turnaround, particularly in the second half of 2018. New listings were down just 0.3% compared to 2017. Many sellers are enjoying rising prices and quick market times but are waiting for more inventory choices before listing. Listings tend to stand out more in a tight inventory market versus one with growing supply.

Buyers were active in 2018, though 3.4% less so than in 2017. Closed sales remain strong. 2018 saw the 4th highest unit sales since 2003. Buyers were encouraged by low interest rates while some were spooked by rate hikes. Rising rents, a solid economy, upper bracket activity, as well as condos and new construction helped to finish off the year strong, despite a modest decrease.

With low-but-rising supply combined with high-but-moderating sales, it’s no surprise the median sales price rose 7.7% to $265,000. This marks a record high. Home prices have risen 76.7% from their low point in 2011 and 15.2% from their prior 2006 peak. Rising prices boost equity, motivate reluctant sellers and replenish local tax base, but can also cause affordability challenges.

Inventory levels finally rose 4.5% after reaching a 15-year low in 2017. Buyers had 8,128 options in December but over 13,000 in September. When combined with strong demand, this supply-side constraint has resulted in competitive bidding and rising prices. The shortage has frustrated some buyers—particularly at the entry-level price points. More supply is vital to ongoing market health and to increase housing opportunities.

Mostly due to fundamentals but also better pricing decisions, sellers yielded a higher share of their asking price. The median percent of original list price received reached a record high of 100.0 percent. Sellers had a 50/50 chance of receiving more than their original list price. The climate for sellers has improved immensely but that could be changing. Sellers are seeing good offers in record time, for now.

Homes are selling at a 12-year record pace. Listings spent a median of 22 days on market, 18.5 percent fewer than 2017 (avg. of 48). That is nearly half the market time of 2015 and under a quarter of the market time from 2011. Among other trends, relatively strong sales of homes selling in record time and at record prices has motivated some sellers. But these market dynamics won’t last forever.

From The Skinny Blog.

Long-awaited inventory gains finally arrive

By David Arbit on Tuesday, December 18th, 2018

For the first time since April 2015, there were more homes listed for sale in the Twin Cities metro than the same month the year prior. After years of strong buyer activity and weak seller activity, the tides seem to finally be shifting. Seller activity has been accelerating since the middle of this year. Meanwhile, the last four months all showed year-over-year decreases in pending sales. Unit sales volumes are still healthy, though there is some downward pressure brought on by tight inventory and rising prices and rates. The market is decelerating, but not yet contracting. Prices continue to rise, and homes are selling in less time. But absorption rates and the ratio of sold to list price are starting to ease. That’s good news for buyers, even though sellers still have strong negotiating power.

The number of active listings for sale has increased compared to the prior year. Buyers haven’t seen inventory gains in over 3.5 years. Months supply also ticked up to 2.1 months, suggesting the market is still tight but it is rebalancing and normalizing. After increasing in October and November, rates have settled back down around September levels. The lack of supply is especially noticeable at the entry-level prices, where multiple offers and homes selling for over list price are commonplace. The move-up and upper-bracket segments are less competitive and—for the most part—much better supplied. Inventory could double while sales remain stable and we’d still have less than 5 months of supply.

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

Sellers listed 3,992 properties on the market, a 12.6 percent increase from last November

Buyers closed on 4,629 homes, a 0.9 percent decrease

Inventory levels for November rose 2.3 percent compared to 2017 to 10,181 units

Months Supply of Inventory was increased 10.5 percent to 2.1 months

The Median Sales Price rose 8.2 percent to $265,150, a record high for November

Cumulative Days on Market declined 7.1 percent to 52 days, on average (median of 31)

Changes in Sales activity varied by market segment:

Single family sales fell 1.1 percent; condo sales jumped 18.7 percent; townhome sales declined 3.3 percent

Traditional sales rose 1.3 percent; foreclosure sales sank 44.1 percent; short sales fell 42.9 percent

Previously-owned sales were down 3.2 percent; new construction sales ramped up by 28.7 percent
From The Skinny Blog.

Supply tight but flattening, prices still rising, sales fluctuating

By David Arbit on Friday, November 16th, 2018

As sentiments regarding the direction of housing markets have changed, it’s worth remembering two key facts. First, all housing is local—what’s happening in San Francisco, Seattle and Denver is not reflective of the Minneapolis-St. Paul market. Second, the housing market faces fewer risks than in the mid-2000s. After years of strong buyer activity and weak seller activity, the tides seem to finally be shifting. Five of the last six months showed increases in new listings; while five of the last six months also had decreases in pending sales. It’s worth noting there’s a significant difference between deceleration and contraction. The market is decelerating, but not yet contracting. Prices continue to rise, homes are selling in less time and sellers are yielding a higher share of their list price.

Excluding September 2018, October had the smallest decline in active listings since May 2015, and those long-awaited inventory gains could arrive as early as next year. Months supply was stable at 2.4 months, suggesting a tight market but also a flattening out pattern. Rising rates could impact some budget-conscious buyers. The lack of supply is especially noticeable at the entry-level prices, where multiple offers and homes selling for over list price are commonplace. The move-up and upper-bracket segments are less competitive and—for the most part—much better supplied. Inventory could double while sales remain stable and we’d still have less than 5 months of supply.

OCTOBER 2018 BY THE NUMBERS (COMPARED TO A YEAR AGO)

Sellers listed 6,011 properties on the market, a 9.2 percent increase
Buyers closed on 5,235 homes, a 3.4 percent increase from last October
Inventory levels for October fell 2.2 percent compared to 2017 to 11,719 units
Months Supply of Inventory was flat at 2.4 months
– The Median Sales Price rose 8.6 percent to $265,000, a record high for September
– Cumulative Days on Market declined 7.7 percent to 48 days, on average (median of 28)
– Changes in Sales activity varied by market segment:

Single family sales rose 4.4 percent; condo sales jumped 10.6 percent; townhome sales were flat
Traditional sales rose 5.2 percent; foreclosure sales sank 41.2 percent; short sales rose 4.5 percent
Previously-owned sales were up 3.7 percent; new construction sales increased 12.3 percent
From The Skinny Blog.

More Early Signs of Shifting Market Tides

By David Arbit on Wednesday, October 17th, 2018

After years of strong buyer activity and weak seller activity, the market tides seem to finally be shifting back toward balance. Strong demand and weak supply have created an environment that favors sellers. But if anything can be called a constant in the market—it’s change. Four of the last five months showed increases in new listings; while four of the last five months also had decreases in pending sales.

While the market hasn’t quite transformed, the dynamics are shifting and the market is transitioning. September saw the smallest decline in active listings since May 2015, and those long-awaited inventory gains could still happen this year. Months supply was down just 3.8 percent to 2.5 months. Today’s buyers still face plenty of competition over limited supply. However, a recent uptick in rates could further impact some budget-conscious buyers. Locking in at current levels would be advantageous in a rising rate environment.Sellers yielded an average of 98.4 percent of their original list price and 99.7 percent of their current list price, partly illustrating that the shortage still looms. The lack of supply is especially noticeable at the entry-level prices, where multiple offers and homes selling for over list price have become commonplace. The move-up and upper-bracket segments are less competitive and—for the most part—much better supplied. It’s noteworthy that inventory levels could double while sales remain stable and we’d still have less than 5 months of supply.

September 2018 by the Numbers (compared to a year ago)• Sellers listed 6,857 properties on the market, a 5.9 percent increase
Buyers closed on 5,087 homes, a 5.8 percent decrease from last September
Inventory levels for September fell 4.4 percent compared to 2017 to 12,570 units
Months Supply of Inventory was down 3.8 percent to 2.5 months
• The Median Sales Price rose 6.1 percent to $262,000, a record high for September
• Cumulative Days on Market declined 16.0 percent to 42 days, on average (median of 24)
• Changes in Sales activity varied by market segment

Single family sales fell 6.3 percent; condo sales declined 1.1 percent; townhome sales rose 0.4 percent
Traditional sales fell 4.0 percent; foreclosure sales sank 41.1 percent; short sales dropped 25.0 percent
Previously-owned sales were down 5.9 percent; new construction sales increased 11.5 percent

From The Skinny Blog.

Gung-Ho Sellers Post Largest Increase in Nearly Three Years

By David Arbit on Wednesday, September 19th, 2018

More sellers are feeling optimistic about listing their homes just as humidity, cabin weekends and food-on-a-stick give way to rakes, school buses and sweater vests. Compared to last August, Twin Cities sellers listed 7.6 percent more homes on the market. That was the largest increase since late-2015. Although buyers signed 2.9 percent fewer contracts than last year, they did manage to close on slightly more deals. Three of the last four months had increases in new listings; three of the last four months had decreases in pending sales. This trend of rising seller activity and moderating buyer activity suggests we could be approaching those long-awaited inventory gains. Sure enough, the 7.8 percent decline was the smallest decrease in inventory in over three years. Months supply was down just 3.8 percent to 2.5 months.

That said, today’s buyers still face plenty of competition over limited supply. Sellers yielded an average of 99.2 percent of their original list price and 100.1 percent of their current list price, illustrating how drastically undersupplied markets tend to favor sellers. The shortage is especially noticeable at the entry-level prices, where multiple offers and homes selling for over list price have become commonplace. The move-up and upper-bracket segments are less competitive and—for the most part—much better supplied. The market remains relatively tight, but there are some early signs that things could be loosening up for buyers.

August 2018 by the Numbers (compared to a year ago)
• Sellers listed 7,814 properties on the market, a 7.6 percent increase
• Buyers closed on 6,629 homes, a 0.2 percent increase from last August
• Inventory levels for August fell 7.8 percent compared to 2017 to 12,243 units
• Months Supply of Inventory was down 3.8 percent to 2.5 months
• The Median Sales Price rose 6.3 percent to $268,000, a record high for August
• Cumulative Days on Market declined 16.7 percent to 40 days, on average (median of 21)
• Changes in Sales activity varied by market segment

o Single family sales fell 0.8 percent; condo sales rose 15.3 percent; townhome sales increased 1.1 percent
o Traditional sales rose 1.5 percent; foreclosure sales sank 35.4 percent; short sales dropped 31.3 percent
o Previously-owned sales were down 0.5 percent; new construction sales increased 20.9 percent

From The Skinny Blog.