Real Estate Snippets

October Real Estate Statistics 2007

The sales figures for October are encouraging as fall is the time of year when buyers stop buying and start preparing for school and holiday activities.  There are always some sales but typical Minnesota real estate sales usually taper off in the fall and revive again after the Super Bowl when the days start to lengthen.  Minnesotans tend to hibernate a bit in the winter!

Houses that actually closed made a nice positive jump in October compared to September with a jump of over 200%.  Houses which have pending sales (an accepted purchase agreement that has not yet transferred title) dropped by about a third in both Hennepin and Ramsey counties.  The drop in pending sales should be reflected by a drop in closed sales when November statistics are reported.

The above figures were based on information from the Regional Multiple Listing Service of Minnesota, Inc. for the period September 1, 2007, through October 31, 2007.  Information is deemed reliable but not guaranteed.

September Real Estate Statistics 2007

The sales figures for September showed some pretty strong numbers for houses that accepted purchase agreements but had not yet closed.  The last little push is on for those who want to buy a house before Christmas.  The number of closings was down in September as the houses that close in September would have had purchase agreements written in August, the month when many families are preparing for school instead of shopping for houses.

The above figures were based on information from the Regional Multiple Listing Service of Minnesota, Inc. for the period August 1, 2007, through September 30, 2007.  Information is deemed reliable but not guaranteed.

August Real Estate Statistics 2007

The number of purchase agreements accepted on listings took a nosedive in August.  In St. Paul that isn't an unusual occurrence as families are spending time in last minute vacations and preparing for school rather than shopping for houses.  The decrease in pending sales is a predictor that closed sales will be low in September.

The above figures were based on information from the Regional Multiple Listing Service of Minnesota, Inc. for the period July 1, 2007, through August 31, 2007.  Information is deemed reliable but not guaranteed.

Office of Federal Housing Enterprise Oversight Report

Another news release and massive report has come from the Office of Federal Housing Enterprise Oversight (OFHEO) showing changes in the Housing Price Index based on real estate sales and refinances.  The most recent HPI figures cover through June of 2007. 

Minnesota actually isn't doing too badly.  We are ranked 43rd in the nation with a one year appreciation of 1.78%, a second quarter depreciation of -.53%, a 5 year appreciation of 35.68%, and an overall appreciation since 1980 of 273.19%.  California and Florida have some areas that are really hurting drastically, but Minnesota's economy remains stable and strong which is maintaining stability in our real estate market.

The national HPI figures are shown in this chart which compares second quarter annual figures of HPI from 1997 through the second quarter of 2007.  The annual HPI figures appreciated to almost 14% in 2005, but have returned to 1997 levels this year. 

The entire report can be viewed here.  For the statistically curious person there's much more detail and many more charts to review.

July Stats 2007

As usual new listings have leveled off in Hennepin and Ramsey Counties, but pending sales have skyrocketed this month.  The number of closed sales in Hennepin and Ramsey have decreased 16% in Hennepin and 10% in Ramsey.  These kind of numbers lead St. Paul and Minneapolis real estate professionals to believe the market is returning to more normal levels for July.

The above figures were based on information from the Regional Multiple Listing Service of Minnesota, Inc. for the period June 1, 2007, through July 31, 2007.  Information is deemed reliable but not guaranteed.

June Stats 2007

Hennepin and Ramsey County real estate sales are reflecting a more normal pattern with an increase in the summer months as demonstrated in the positive increase from May to June. 

The above figures were based on information from the Regional Multiple Listing Service of Minnesota, Inc. for the period May 1, 2007, through June 30, 2007.  Information is deemed reliable but not guaranteed.

Minnesota Mortgage Fraud

It never fails that a little research will change one's opinion.  After ranting about the witch hunt being conducted to catch real estate professionals in fraud,  a little research has given me a heads up.   According to MSN Money, Minnesota is the second highest ranked state in the nation for credit scores with an average score of 708, only one point less than our neighbor South Dakota which ranks first.  Experian ranks Minneapolis in first place and Boston in second.

However, Alex Stenbeck, a Minneapolis St. Paul mortgage broker quotes some disturbing information on his blog.  The MARI (Mortgage Asset Research Institute) has published a report that ranks Minnesota as 8th in reported mortgage fraud in the nation and 4th in sub-prime mortgage fraud!  If we have such good credit scores why would we need mortgage fraud and why would we need that many sub-prime mortgages?  Since we have such high scores, it would seem no one would need to commit fraud to get a mortgage.   Obviously, these reports are why the Department of Commerce, HUD and the FBI are investigating the behaviors of real estate professionals in Minneapolis and St. Paul.  Even though it feels like a witch hunt, there must be some basis for the allegations if that many people are reporting mortgage fraud in our towns!

May 2007 Real Estate Stats

A big surge of listings hit the market in April but new listings in May dropped about 1/3 in both Hennepin and Ramsey Counties.  Pending sales and closed sales dropped as well.  Possibly preparations for the end of school, graduations, proms, and Memorial Day plans impacted our May market.  Comparing month to month is usually erratic.  Year to year comparisons are better for evaluating whether the market truly is changing.

The above figures were based on information from the Regional Multiple Listing Service of Minnesota, Inc. for the period April 1, 2007, through May 31, 2007.  Information is deemed reliable but not guaranteed.

REALTOR® Profiles

Yep, it's a registered trademark, not to mention that the term REALTOR® only refers to members of the National Association of REALTORS® trade organization, not all real estate agents.

One of the things membership in NAR affords an agent is research that supports a bunch of interesting, but sometimes useless, statistics.  Just recently NAR reported the results of just such a study.  The press release tells one everything you wanted to know, and a good bit more, about REALTORS®.

• Almost 1/4 of the REALTORS® have been in the business for 2 years or less!
• The more experienced the REALTOR® the higher the average income:  $15,300 for 1-2 years experience; $44,200 for 3-5 years; $64,600 for 6-15 years; $76,200 for 16+ years experience.
• Based on the averages above, most REALTORS® are not as wealthy as the general public believes.
• REALTORS® get 41% of their business from referrals.
• Only 17% of the transactions are done with only one REALTOR® allowing that REALTOR® to receive the entire commission without splitting it with another agent.
• Median income for REALTORS® has steadily fallen since 2002.
• The typical REALTOR® is 51, has been in the business 7 years, and works a 40 hour week.
• REALTORS® are educated with 44% holding at least a bachelor's degree.

April 2007 Real Estate Stats

Spring has sprung in the St  Paul real estate market.  New listings have more than tripled last month's numbers.  Closed sales in Ramsey County tripled last month's closings as well.  That is a good sign for Ramsey County.  Both Hennepin and Ramsey County show a big increase in accepted purchase agreements over last month.  Dare we be cautiously optimistic that a good change is in the works?

The above figures were based on information from the Regional Multiple Listing Service of Minnesota, Inc. for the period March 1, 2007, through April 30, 2007.  Information is deemed reliable but not guaranteed.