WEEKLY REPORT

Has everyone remembered to “spring” forward? It looks like the Twin Cities

Housing Market certainly has, as the new season has brought in an uptick in

sales along with the warm weather. The market can only hope that “spring”

fever is more than just a figure of speech.

Speaking of pending sales, while they have tapered off during the week

ending March 14, there is no denying that since the new year began pending

sales have steadily outperformed last year’s numbers. In fact, even with

almost no increase in pending sales activity the 870 pending sales for the

week are still 14.9 percent higher than last March at this time.

Total active listings are another story. While new listings for this period are

only 13.9 percent lower than last year, active listings are down nearly 14.7

percent. This can be looked at in a positive light however if you consider the

combination of pending sales, decreasing inventory, and higher HAI (Housing

Affordability Index) are all helping to get more people into homes throughout

the new spring season. This coupled with the federal government’s tax credit

efforts could give the Twin Cities housing market the added boost it needs to

awaken and to realize the potential that is out there.

There are many other events that coincide with spring: spring training, spring

fever, spring boards…ok that last one isn’t technically associated with the

season. But with the Month’s Supply of Inventory for March down 15.2

percent over last year, agents across the Twin Cities can assist buyers in

diving right into the market now that conditions are beginning to warm.

WEEKLY MARKET ACTIVITY REPORT

Brr! Did the last snowstorm convince you that winter has not loosened its icy grip on the Twin Cities quite yet? It seems assured that March will lion in and lamb out, but the Twin Cities housing market is not expected to show the same pattern, as sales continue to climb upward when compared to last year’s numbers.

Since December 2008, pending sales for the Twin Cities housing market have continued to outperform the same week for the prior year. For the week ending February 21, pending sales are up 12.4 percent vs. last year at this time. Deep freeze or not, buyers are showing a willingness to brave the temperatures for a deal.

New listings checked in at 1,558, which is 15 percent below 2008. Active listings are off from last year by about 4,000 (or 13.7 percent fewer) homes. Warmer weather tends to coincide with more activity, so we’ll be watching new and active listings with much interest over the next few months.

Another number to watch is the Supply-Demand Ratio (SDR). This figure, representing how many homes are available per buyer, is down 21.8 percent to 6.38 homes per buyer compared to last year. That’s now nine months in a row of lowered year-over-year SDR. With fewer active listings and a shrinking SDR, sellers may begin to feel some easement from the buyer’s market wedge. It’s too early to tell, but as many of our REALTOR® members are telling us, the increase in foot traffic is palpable.