On September 13, the Federal Reserve announced its third round of quantitative easing (QE3). This time, it took the form of $40 billion in mortgage-backed securities (MBS) purchases each month. The goal is to bolster the stock market by diminishing returns on MBSs. This will make equities more attractive, which will provide capital to corporations, who should in turn hire and therefore spur consumer spending. If successful, that job creation and spending will resonate into housing consumption and reinvestment. New jobs fuel housing demand which alleviates underwater homeowners and supports home prices. Here’s how we rounded out the week.
In the Twin Cities region, for the week ending September 15:
• New Listings increased 4.0% to 1,360 • Pending Sales increased 18.4% to 978 • Inventory decreased 29.5% to 16,479
For the month of August:
• Median Sales Price increased 14.8% to $178,000 • Days on Market decreased 23.9% to 107 • Percent of Original List Price Received increased 4.2% to 95.1% • Months Supply of Inventory decreased 41.5% to 4.2