Archive for June, 2013
Comments Off on Minneapolis Duplex Sales Explode
The Minneapolis duplex market is blowing up!
For the week ending June 15, 2013, 26 duplex, triplex and fourplex owners received and accepted offers on their properties. Sixty-nine percent of these sellers have equity in their properties, which left the market at a final average list price of $215,325.
For the same week in 2012, there were 15 sellers who accepted offers for their Twin Cities duplexes. Fifty-three percent of these folks did not need to consult with a bank in order to sell, and they did so at an average price of $172,023.
The good news for buyers was that inventory was up the second week of June, with 37 new listings hitting the market. A whopping 86.5 percent of these sellers are neither banks nor short sales.
Traditional sellers had nowhere near the same market share the second week of June last year, with just 48.4 percent of the 31 sellers owing less than what the property was listed for.
Single family home sellers also took advantage of booming housing sales, bring 32.6 percent more new listings to the market during the week than last year. Of course, pending sales were also up 23.2 percent, leaving us still with a 20 percent decrease in inventory.
As we go forward, keep an eye on interest rates. They’ll play a key role in how long and how fast we truly recover.
Comments Off on For Duplex Design, Check Out A Houzz
I have a confession. I’m not much for duplex decorating. And yet, I suddenly and rather inexplicably have found myself hopelessly addicted to the web site and app Houzz.com.
Whether you’re thinking of remodeling your duplex, or just like to see photos of amazing multi-family properties, Houzz probably has what you’re looking for.
Touting itself as the leading online platform for home design, Houzz allows you to browse 1.5 million photos for ideas, collect them in your own Ideabook, and connect with professionals in the area who can help you achieve similar results in your own remodel.
The site’s search function allows you to put in exactly what you’re looking for and get thousands of visual results.
Try it and you’ll discover some of the most amazing duplexes you’ve ever seen.
Comments Off on Duplex Sellers Get Happy
When I saw 27 new Minneapolis and St Paul duplex, triplex and fourplex listings come on the market for sale the week ending June 8, I had to keep myself from jumping up and down.
After all, we’ve been suffering from a severe shortage of properties to sell most of the year. And 27 seemed like a higher number than what we’ve seen over the last several months. Of these, the majority are either bank owned or require a lender to be involved in the negotiations.
My enthusiasm waned quickly, however, when I saw during the same week last year there were 39 new duplex listings for sale. Just 41 percent of these were owned by traditional sellers, meaning the banks had the greatest market share then too.
The good news is there were 20 happy duplex seller during the first week of June. Of these, 55 percent will walk away from closing with a check in their hand. At an average off market final list price of $178,251, those checks are likely to have a comma in them.
Of last year’s sold duplexes for the same week, 50 percent of the 14 were brought to the market by traditional sellers. At an average sold price of just $141,914, however, their departing checks were likely smaller on average.
Single family home sellers welcomed an average Median Sales Price for their properties during the month of may of $194,000. Sellers are getting closer to their asking price as well, with the average Percent of Original List Price Received up 2.5% to 97%.
In all, we have just 3.4 months of inventory left to sell.
This should certainly be cause for sellers to jump for joy.
Comments Off on Remodeling Your Duplex? Think Like A Picker
What should you do if your 1920’s duplex is missing the built-ins and charm that made them so popular?
After all, there aren’t a lot of carpenters doing that kind of work today. And those who do? Well, they’re usually backed up and/or expensive.
Over the weekend I stumbled into what may be a faster and less expensive solution for many Minneapolis duplex owners.
Bauer Brothers Salvage in north Minneapolis is roughly the equivalent of American Pickers, on steroids, for architectural pieces.
Located in a giant warehouse, the place is four full floors packed with anything you could ever need to take your Craftsman duplex back to its original condition.
Need a period door? Odds are they’ve got one. How about the small bookcases that once helped differentiate the living room from the dining room? They’ve got those too.
And if you’re simply in the market for a conversation piece, odds are a porcelain embalming table or theater seats from Northrup Auditorium could do the trick.
Bauer Brothers will also buy or take in trade unwanted architectural items. And if it’s too big and cumbersome? They’ll even come pick it up.
These places exist elsewhere. In Los Angeles, for example, you may have similar luck downtown at Santa Fe Wrecking.
And if you’re not in Minnesota or southern California, you may be able to find comparable businesses by simply searching the Internet for architectural salvage in your area.
It’s a fun way to spend an afternoon and improve your property all at the same time.
Comments Off on Will Interest Rates Kill The Minneapolis Duplex Market?
Last week, interest rates went up.
When interest rates go up, buyers plain and simply can’t pay as much for Minneapolis and St Paul duplexes, triplexes and fourplexes.
That means if you’ve been thinking about selling, buyers can pay you more now than they may be able to next year.
Take, for example, the week ending June 1, 2013. There were 25 Twin Cities duplex sellers who received and accepted offers on their properties. Of these, 48 percent will leave closing with a check in their pockets.
On average, these sellers had a final listing price on their duplexes of $152,892, which is up from last year’s sold price of $143,629 for the same week. In something of an unusual twist for the last several months, however, 81 percent of these 16 owners were traditional sellers, which is more characteristic of this year’s market.
The market continued to be at something of a standstill for new inventory, with 25 new listings becoming available; up one from last year’s 24. Sixty-eight percent of this year’s offerings are being sold by equity sellers; down slightly from last year’s 70.8 percent who could say the same.
Single family home buyers saw a 23.6 percent rise in inventory for the week, with pending sales also up 22.8 percent. Overall, inventory is down 23.1 percent.
It’s also interesting to note that in May, the average Median Sales Price for a home sold in the Twin Cities was $194,950; up significantly from April’s Median Sales Price of $182,000.
As long as interest rates stay low, it will continue to be a great time to sell.
said on June 6th, 2013 categorized under: Financing
Comments Off on Buy A Duplex With Just 5% Down
Want to buy a duplex but don’t have a big down payment?
If you’re going to live there, you can always get an FHA loan that requires just a 3.5 percent down payment, right?
Trouble is, with FHA’s new higher and longer mortgage insurance premiums, those loans have gotten expensive.
Well, there’s finally some good news from the mortgage industry for duplex owner occupants.
Sam Giannakakis, a loan officer with Alerus Mortgage, called yesterday with news of a loan that requires just a 5 percent down payment for owner occupant buyers.
Borrowers must have a minimum credit score of 680, be buying the duplex with the intent to live in it, and earn no more than $86,000 a year.
While the income limitations mean this loan isn’t for everybody, it nonetheless is an indication the banking industry may be rethinking some of their positions on multifamily property lending.
This loan is available nationally, and if it’s something that’s a fit for you, contact Sam by using the hyperlink above. He’d be happy to help; regardless of where you live.
Comments Off on Duplex Sales Up And Away
What goes up, must come down. But for the Minneapolis and St Paul duplex markets, it appears what’s been down must come up.
For the week ending May 25, 2013, there were 22 duplex sellers who received and accepted offers. Of these, 81.8 percent have equity and will leave the closing with money in their pockets. These checks may be substantial. After all, the average off market list price was $200,468.
These figures are up; in volume, traditional seller market share and price from the same week in 2012, when 16 owners accepted offers; 62.5 percent of whom received checks at closing on an average sales price of $156,149.
There was good news for duplex buyers and investors for the week as well. There were 34 new listings for the week; up 26.5 percent from last year. A whopping 82.4 percent of these sellers are traditional, up substantially from the 68 percent who were last year.
This is important to buyers who have been in multiple offers all year and are growing frustrated by an overall lack of inventory.
Single family home buyers received a bit of relief as well, with the number of new listings up 29.8 percent. However, pending sales rose as well; up 18.8 percent over last year, with total inventory down 24.6 percent.
This overall lack of inventory again put upward pressure on prices, with April’s median sales price of $182,000 a full 12 percent above last year’s.
It continues to be a great time to sell a Minneapolis or St Paul duplex!
said on June 3rd, 2013 categorized under: Education
Comments Off on Have I Taught You Everything You Want To Know About Duplexes?
Sometimes I feel like I live in an aquarium. I swim back and forth, wondering what it is all of you are waiting to read and know about investing in duplexes, but all I can hear is my own thought bubbles.
Do they want to know how to do the numbers? Naw, I already wrote about that.
How about bad tenants?
I’ve done that too.
What about truth-in-housing reports, inspections, or even bed bugs?
Nope. I’ve written about those too.
So, here’s your chance.
Drop me a line and ask.
Provided it doesn’t require a legal, banking or tax opinion, I’ll do my very best to find you the answer!