Page 0: Page 1: Week of August 30, 2010 What to Watch For For 12 consecutive weeks now, the number of homes for sale in the Twin Cities housing market has been higher than it was a year ago, and the gap between this year's inventory and last year's inventory at the same time has been steadily growing. There are currently 27,784 homes for sale, up 8.1 percent from this time in 2009. Inventory is not growing due to an influx of new sellers putting their homes on the market. Rather, its growing due to a drop in buyers who once were absorbing supply. For the week ending August 21, there were 601 signed purchase agreements, down 40.6 percent from a year ago. That's the 15th consecutive week of significant declines compared to a year ago. With supply growing and fewer buyers to purchase it, home sellers can expect a challenging fall and downward pressure on home values. Motivated sellers who want to move quickly may have to pursue aggressive pricing to attract buyers. A free research tool from the North Metro REALTORS® Association Brought to you by the unique data-sharing traditions of the REALTOR® community Contents New Listings Pending Sales Active Listings Days on Market Until Sale Percent of Original List Price Received at Sale Supply-Demand Ratio Housing Affordability Index Months Supply of Inventory ......... 2 ......... 3 ......... 4 ......... 5 ......... 6 ......... 7 ......... 8 ........ 9 All data from the Regional Multiple Listing Service. Reports are created and maintained by 10K Research and Marketing. 1 Page 2: New Listings As of August 30, 2010 Last Three Months Weekly New Listings 2,250 2,150 2,050 1,950 1,850 1,750 1,650 1,550 1,450 1,350 1,250 5/29/10 6/5/10 6/12/10 6/19/10 6/26/10 7/3/10 7/10/10 7/17/10 7/24/10 7/31/10 8/7/10 8/14/10 8/21/10 Current Activity One Year Ago For the week ending: 5/29/2010 6/5/2010 6/12/2010 6/19/2010 6/26/2010 7/3/2010 7/10/2010 7/17/2010 7/24/2010 7/31/2010 8/7/2010 8/14/2010 8/21/2010 3-Month Total: Current Activity 1,474 1,521 1,729 1,712 1,608 1,397 1,542 1,618 1,578 1,566 1,759 1,601 1,516 20,621 One Year Ago 1,566 2,160 1,970 1,870 1,719 1,482 1,867 1,798 1,652 1,637 1,802 1,630 1,600 22,753 One Year Change - 5.9% - 29.6% - 12.2% - 8.4% - 6.5% - 5.7% - 17.4% - 10.0% - 4.5% - 4.3% - 2.4% - 1.8% - 5.3% - 9.4% Historical New Listings 3,500 3,000 2,500 2,000 1,500 1,000 500 0 1/4/04 5/4/04 9/4/04 1/4/05 5/4/05 9/4/05 1/4/06 5/4/06 9/4/06 1/4/07 5/4/07 9/4/07 1/4/08 5/4/08 9/4/08 1/4/09 5/4/09 9/4/09 1/4/10 5/4/10 All data from the Regional Multiple Listing Service. Reports are created and maintained by 10K Research and Marketing. 2 Page 3: Pending Sales As of August 30, 2010 Last Three Months Weekly Pending Sales 1,300 Current Activity 1,200 One Year Ago For the week ending: 5/29/2010 6/5/2010 6/12/2010 6/19/2010 6/26/2010 7/3/2010 7/10/2010 7/17/2010 7/24/2010 7/31/2010 8/7/2010 8/14/2010 8/21/2010 3-Month Total: Current Activity 600 527 674 645 587 611 545 626 628 651 659 631 601 7,985 One Year Ago 917 1,226 1,210 1,156 1,121 989 1,007 1,038 1,009 991 1,037 1,026 1,012 13,739 One Year Change - 34.6% - 57.0% - 44.3% - 44.2% - 47.6% - 38.2% - 45.9% - 39.7% - 37.8% - 34.3% - 36.5% - 38.5% - 40.6% - 41.9% 1,100 1,000 900 800 700 600 500 5/29/10 6/5/10 6/12/10 6/19/10 6/26/10 7/3/10 7/10/10 7/17/10 7/24/10 7/31/10 8/7/10 8/14/10 8/21/10 Historical Pending Sales 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1/23/05 5/23/05 9/23/05 1/23/06 5/23/06 9/23/06 1/23/07 5/23/07 9/23/07 1/23/08 5/23/08 9/23/08 1/23/09 5/23/09 9/23/09 1/23/10 5/23/10 All data from the Regional Multiple Listing Service. Reports are created and maintained by 10K Research and Marketing. 3 Page 4: Active Listings for Sale As of August 30, 2010 Last Three Months Weekly Inventory for Sale 28,000 Current Inventory 27,750 27,500 27,250 27,000 26,750 26,500 26,250 26,000 25,750 25,500 5/24/10 5/31/10 6/7/10 6/14/10 6/21/10 6/28/10 7/5/10 7/12/10 7/19/10 7/26/10 8/2/10 8/9/10 8/16/10 8/23/10 One Year Ago Inventory as of: 5/24/2010 6/1/2010 6/7/2010 6/14/2010 6/21/2010 6/28/2010 7/6/2010 7/12/2010 7/19/2010 7/26/2010 8/2/2010 8/9/2010 8/16/2010 8/23/2010 3-Month Avg: Current Inventory 26,416 26,415 26,746 26,990 27,234 27,526 27,044 27,365 27,530 27,661 27,380 27,627 27,664 27,784 27,305 One Year Ago 26,532 26,453 26,608 26,703 26,857 26,674 26,043 26,207 26,279 26,255 25,818 25,923 25,765 25,691 26,252 One Year Change - 0.4% - 0.1% + 0.5% + 1.1% + 1.4% + 3.2% + 3.8% + 4.4% + 4.8% + 5.4% + 6.1% + 6.6% + 7.4% + 8.1% + 4.0% Historical Weekly Inventory for Sale 40,000 35,000 30,000 25,000 20,000 15,000 10,000 3/12/04 7/12/04 11/12/04 3/12/05 7/12/05 11/12/05 3/12/06 7/12/06 11/12/06 3/12/07 7/12/07 11/12/07 3/12/08 7/12/08 11/12/08 3/12/09 7/12/09 11/12/09 3/12/10 7/12/10 All data from the Regional Multiple Listing Service. Reports are created and maintained by 10K Research and Marketing. 4 Page 5: Days on Market Until Sale July 2010 — 127 146 137 127 Month 8-2009 9-2009 10-2009 11-2009 12-2009 1-2010 2-2010 3-2010 4-2010 Current Year 133 129 128 127 132 135 142 130 127 118 121 127 129 One Year Previous 143 145 141 149 148 146 157 150 150 147 140 137 146 One Year Change - 7.1% - 11.0% - 9.4% - 14.5% - 10.5% - 7.8% - 9.7% - 13.7% - 15.3% - 19.9% - 14.0% - 6.8% - 11.7% - 6.6% - 6.8% 5-2010 6-2010 7-2010 12-Month Avg: 7-2008 7-2009 7-2010 Two Year Picture: Days on Market Until Sale 170 160 150 140 130 120 110 7-2008 1-2009 7-2009 1-2010 7-2010 All data from the Regional Multiple Listing Service. Reports are created and maintained by 10K Research and Marketing. 5 Page 6: Percent of Original List Price Received at Sale July 2010 — 91.8% 100% Month 8-2009 95% Current Year 94.1% 93.9% 94.6% 94.3% 93.4% 92.8% 92.3% 94.0% 93.6% 94.1% 93.4% 91.8% 93.5% One Year Previous 92.7% 92.2% 91.3% 90.1% 90.0% 89.5% 89.3% 91.5% 90.0% 91.5% 92.9% 94.0% 91.3% One Year Change + 1.5% + 1.8% + 3.6% + 4.7% + 3.8% + 3.7% + 3.4% + 2.7% + 4.0% + 2.8% + 0.5% - 2.3% + 2.5% 94.0% 92.6% 91.8% 9-2009 10-2009 11-2009 12-2009 1-2010 2-2010 3-2010 90% 85% + 1.5% - 2.3% 4-2010 5-2010 6-2010 7-2010 12-Month Avg: 80% 7-2008 7-2009 7-2010 Two Year Picture: Percent of Original List Price Received at Sale 100% 98% 96% 94% 92% 90% 88% 86% 7-2008 1-2009 7-2009 1-2010 7-2010 All data from the Regional Multiple Listing Service. Reports are created and maintained by 10K Research and Marketing. 6 Page 7: Supply Demand Ratio August 2010 — 8.64 Houses Per Buyer Actual Projected Month 9-2009 10-2009 11-2009 12-2009 Current Year 5.10 5.30 7.72 8.27 6.97 5.85 4.43 4.37 6.77 7.62 8.42 8.64 6.62 One Year Previous 7.83 8.88 10.88 12.06 8.43 7.64 5.79 5.02 5.23 4.55 5.06 5.28 7.22 One Year Change - 34.9% - 40.3% - 29.0% - 31.4% - 17.3% - 23.4% - 23.5% - 13.1% + 29.3% + 67.4% + 66.2% + 63.5% - 8.3% 8.64 7.48 5.28 1-2010 2-2010 3-2010 4-2010 - 29.4% + 63.5% 5-2010 6-2010 7-2010 8-2010 12-Month Avg: 8-2008 8-2009 8-2010 Two Year Picture: Supply-Demand Ratio 14 12 10 8 6 4 8-2008 2-2009 8-2009 2-2010 8-2010 All data from the Regional Multiple Listing Service. Reports are created and maintained by 10K Research and Marketing. 7 Page 8: Housing Affordability Index May 2010 — 202 Month 195 205 9-2009 10-2009 11-2009 144 12-2009 1-2010 2-2010 3-2010 4-2010 5-2010 6-2010 7-2010 8-2010 12-Month Avg: Current Year 195 201 202 207 208 217 213 206 202 200 199 205 204 One Year Previous 151 159 161 180 192 202 206 218 219 199 192 195 190 One Year Change + 29.1% + 26.4% + 25.5% + 15.0% + 8.1% + 7.3% + 3.2% - 5.4% - 7.8% + 0.4% + 3.6% + 5.1% + 7.9% + 35.4% + 5.1% 8-2008 8-2009 8-2010 Two Year Picture: Housing Affordability Index 240 220 200 180 160 140 8-2008 2-2009 8-2009 2-2010 8-2010 All data from the Regional Multiple Listing Service. Reports are created and maintained by 10K Research and Marketing. 8 Page 9: Months Supply of Inventory August 2010 — 7.8 Months 10.5 Month 9-2009 10-2009 7.2 7.8 11-2009 12-2009 1-2010 2-2010 3-2010 4-2010 5-2010 6-2010 7-2010 8-2008 8-2009 8-2010 Current Year 6.9 6.6 6.1 5.7 5.0 5.5 6.0 6.5 6.7 7.0 7.1 7.8 6.4 One Year Previous 9.9 9.5 9.0 8.5 7.6 7.7 7.8 7.7 7.7 7.6 7.3 7.2 8.1 One Year Change - 30.3% - 30.5% - 32.2% - 32.9% - 34.2% - 28.6% - 23.1% - 15.4% - 13.0% - 7.9% - 2.9% + 8.3% - 21.1% - 31.4% + 8.3% 8-2010 12-Month Avg: Two Year Picture: Months Supply of Inventory 11 10 9 8 7 6 5 8-2008 2-2009 8-2009 2-2010 8-2010 All data from the Regional Multiple Listing Service. Reports are created and maintained by 10K Research and Marketing. 9 Page 10: