The Minneapolis Area Association of Realtors has released the latest real estate number for the Twin Cities.Â
Weekly Market Activity Report
As mortgage rates decline and home sellers appear increasingly willing to accept moderate offers, home sales have picked up slightly in recent weeks. Newly signed purchase agreements (pending sales) for the week ending November 3 were behind last year at this time by only 13.6 percent. New listings on the market also increased, up 7.3 percent for the same time period comparison. This week’s edition of MAAR’s Weekly Market Activity Report features updated figures for several key metrics:
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Days on Market Until Sale in October was 142 days, an increase of 20.3 percent from one year ago.
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Percent of Original List Price Received at Sale declined further to 93.1 percent and should continue to fall until early 2008.
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The November Housing Affordability Index increased dramatically to 138 due to declines in mortgage rates and home prices, an important trend for the long-term health and accessibility of our market.
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Months Supply of Inventory declined slightly to 9.5 months.Â
It is nice to see the pending sales only down 13% this week, but one week doesn’t make a trend. What’s interesting to note about the Days on Market number is that people have to realize that number is for the best homes for sale in the market by value. For every home that had a purchase agreement, there were 8-9 others that didn’t get a contract. For the vast majority of homes out there, sales times are longer than 142 days or 5 months. Also, it should be noted that the Days on Market number until sale means that’s the number of days it took to get a contract signed. It still might take another 2-8 weeks to close the transaction.
