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Archive for the 'Twin Cities Real Est' Category
Deadline Pushes Minneapolis Duplex Market
March 9th, 2010 categories: Twin Cities Real Est
There are less than 60 days left to qualify for either the first time home buyer or repeat buyer tax credit.
That looming deadline may well have inspired the Twin Cities housing market’s 13.9 percent year-over-year jump in accepted offers for the week ending February 27.
While not as dramatic, the duplex and small multifamily property market also saw an increase in pended transactions; up 4.4 percent year-over-year.
Of the properties that pended, 19.46 percent were offered by traditional sellers; up from 11.6 percent for the same week in 2009.
While neither year posted particularly inspiring average off-market prices, the figure for the week in 2010 of $83,746, did nonetheless represent an increase of $805 over the year before.
The amount of new duplex inventory continued to trail last year’s mark, with just 45 properties coming on the market for the week. This represents a 30.7 percent drop from last year.
Of these new listings, 28.9 percent were offered by traditional sellers. While that’s a figure that appears thin, it is still more than twice as many as last year.
As the tax credit deadlines loom, let’s hope for continued good news.
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Minneapolis Duplex Market Hints At Thaw
March 2nd, 2010 categories: Twin Cities Real Est
Believe it or not, in some sectors of the Twin Cities housing market have begun to thaw. In fact, it feels like spring: of 2006.
Realtors and our clients are once again experiencing multiple offers and having to rush to see newly listed properties before they’re gone.
Unfortunately, the bulk of this activity is in first time home buyer territory; namely, those properties below $225,000.
But there are hints in MAR’s Weekly Market Activity Report that perhaps things are loosening up. For the week ending February 20, pending sales were actually 9.9 percent higher than they were for last year. This is the first year-over-year increase we’ve seen in weeks.
With just 5.39 homes available for each active buyer in the market, a 17.7 percent increase in the number of new listings for the week may help those facing multiple offers find homes. There are 6.9 percent fewer homes available for purchase this year than there were at this point in 2009.
In the small multifamily sector, traditional sellers continued to gain ground on the banks. Twenty-five percent of the owners of properties that received purchase agreements were people, not corporations. Of those listings new to the marketplace, 48.14 percent were being sold by people with actual names.
While the number of pended duplex sales was down 38.5 percent, the good news is the average price they left active status at was $121,509. This represents a significant leap over last year’s sold price of $94,671.23.
As we head toward the $8000 first time home buyer and $6500 repeat buyer tax credit April 30 deadline, we’re sure to see even more signs of spring.
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Minneapolis Duplex Market Sick of Winter
February 24th, 2010 categories: Twin Cities Real Est
Winter doesn’t seem to be quite done with the Twin Cities housing market, as it appeared to slip on the ice for the week ending February 13.
Pending single family home sales were down 2.7 percent from last year, while new listings scrambled to their feet, with 4.9 percent more of them than a year ago.
There was, however, a patch of pavement visible, with the current number of available homes down 12.4 percent from a year ago.
In the duplex sector, traditional sellers continued to gain a little traction, contributing 46 percent of the week’s new listings. They comprised just 25 percent of the new listings for the week in 2009.
However, they also saw just 11 percent of the pended transactions for a week. This represents a modest 2 percent gain over 2009.
The average off market price for the week was $115,060 compared to 2009’s average sold price of $91,660.
New listings stayed about the same, with 52 new listings coming on in 2010 as compared to 53 last year. In all, in the metro area there are currently 604 duplexes, triplexes and fourplexes actively listed on the MLS.
Let’s hope a spring thaw is just around the corner.
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Buyers Nod Yes In Minneapolis Duplex Market
February 16th, 2010 categories: Twin Cities Real Est
Back in the day, oh, say, in around 2005-2006, well-maintained properties that were properly priced were selling at a rapid pace, and with multiple offers.
It was almost like an auction, with bidders scrambling to out-strategize and out-maneuver one another.
And while we all know the market has changed since then, there have been some buyers making subtle nods of their heads in recent weeks.
With today’s release of MAR’s Weekly Activity Report came news that the monthly supply of inventory is now at just 5.5 months. While this number still slightly favors sellers, it’s important to remember that a balanced market, where buyers and sellers are on equal footing, occurs when there is a 5 month supply.
For the week ending February 6, MAR reported new listings of single family homes were up 3.8 percent from one year ago. So too were pending sales, with 4.7 percent more properties receiving purchase agreements than in 2009.
While duplex sales for the week were down 3 percent from last year, there was decidedly less inventory for buyers to choose from. The week showcased 23 percent fewer new listings than came on the market the first week of February last year. Of the 2010 new offerings, 10.8 percent were listed by traditional sellers, compared with just 5.3 percent last year.
The average off market price for the week was $121,536. This is up considerably from last year’s $98,528.
Tightening inventory brings increased competition for listings. And while it’s not scientific, I can share that three of my buyers have been involved in multiple offer situations in the last 10 days.
As long as inventory remains tight, expect that trend to continue.
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Minneapolis Duplex Market Goes Zen
February 9th, 2010 categories: Twin Cities Real Est
MAAR issued its Weekly Market Activity Report this morning and by all appearances, housing transactions for the week ending January 30, 2010, remained in their meditative state.
Pending single family home sales were down just slightly from the same week in 2009, while the number of signed purchase agreements rose just 0.7 percent.
The number of new single family home listings didn’t make any real perceptible moves either, dropping 3.7 percent year over year.
The duplex and small multi-family market showed a few signs of movement, but most were slight. For example, of the properties this year that received purchase agreements, 95 percent involve a lender in the negotiations. This is down .5 percent from last year.
The average pended price of properties for the week in 2010 was $98,395, compared with last year’s average sale price of $93,118.
New listings for the week trailed last year by 12.3 percent. The good news is 40.35 percent of the week’s new inventory was offered by traditional sellers, compared with just 26 percent for last year.
Let’s hope the tranquility doesn’t last.
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Minneapolis Duplex Market Studies Itself In The Mirror
February 2nd, 2010 categories: Twin Cities Real Est
The Minneapolis Area Association of Realtors released its weekly activity report last night, and it turns out that January of 2009 and 2010 are almost mirror images of one another.
Pending sales and new listings are down a bit from last year, and there’s a little bit more inventory on the market, but, by en large, it’s a wash.
For the week ending January 23, there were 2.3 percent fewer signed single family purchase agreements than there were for the previous year.
In the duplex market, however, the reflection from year over year had a few ripples in it.
The number of signed purchase agreements for the week in 2010 was down 31.4 percent from the 2009 mark. Of those properties that did receive and accept offers, 12.5 percent were brought to the market by traditional sellers. This represennts an increase of 4 percent year over year.
The average off market price for the week was $95,177; almost identical to 2009’s $95,371.
While the number of new listings to hit the market was virtually identical, this year traditional sellers were responsible for 40.35 percent of the new inventory. This is a stark contrast to last year’s market share of just 8.5 percent.
Hey, look at it this way. At least there aren’t any new wrinkles or gray hairs to contend with.
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Every Minneapolis Duplex Cloud Has A Silver Lining
January 25th, 2010 categories: Twin Cities Real Est
There’s a lot of doom and gloom in the air today, and not all of it has to do with last night’s Viking loss.
Some of it has to do with today’s announcement by the National Association of Realtors that nationally, existing home sales fell in December. It wasn’t entirely unanticipated. Most economists thought the rush to beat the original November tax credit deadline might have an effect on December’s housing market. And it did.
So that’s the bad news. But there was some good news in the rest of the story.
See, while existing home sales fell 16.7 percent, they were still 15 percent higher than they were in December 2008.
More importantly perhaps, 4.9 percent more existing homes sold in 2009 than they did in 2008.
The national median home price was $178,300, which is again up over December 2008; albeit a slight 1.5 percent.
Of course, foreclosures and short sales, which represented 36 percent of all home sales last year continue to skew those median price numbers.
The Vikings had a sliver of good news too. Yesterday’s loss means they’ll get a better draft choice.
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Minneapolis Duplex Sales: Nothing To Buy
January 19th, 2010 categories: Twin Cities Real Est
Something’s happening in the Twin Cities house and duplex markets.
New duplex listings for the week e000 firstnding January 9, 2010, were down 36 percent from their market one year ago. Of these, a whopping 45 percent were listed by traditional sellers.
Over the last three months, the number of new single family home listings in Minneapolis and St Paul has dropped 11.7 percent from one year ago.
Less inventory is a good thing, right? Won’t that cause prices to go up?
Theoretically. However, for the week, the average off market price for a small multi-family property was $87,635. The average sales price for the same stretch in 2009 was $124,989. That’s the first time in months the average off market price has dropped.
Here’s the other bit of befuddling news. In spite of the looming April 30 expiration of both the $8000 first time home buyers and $6500 repeat buyer tax credits, duplex sales were down 43.9 percent year over year.
The same trend is happening in the single family market. For the seventh time in nine weeks sales were down; this time 1.7 percent from 2009.
I have a theory. It isn’t scientific, but having been out in the field with buyers, I can say this: there’s nothing decent for them to buy.
Tough to have booming sales when the store shelves are empty.
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Minneapolis Duplex Sale May End Soon
January 12th, 2010 categories: Twin Cities Real Est
The buyer’s market is over.
Buried in the Weekly Market Activity Report from the Minneapolis Area Association of Realtors was news that The Months Supply of Inventory in the marketplace is 5.
In other words, if no new houses came on the market today, in 5 months we’d be out of houses to sell.
A year ago, we had a 6.7 month supply.
Generally speaking, the housing market is considered to be balanced, with neither buyer nor seller having the advantage, at a 5 month supply.
Does this mean we’re once again on course for double digit rates of appreciation for single family homes?
Unlikely. Especially with the distinct possibility of higher interest rates on the spring horizon.
The duplex market for the week ending January 2, 2010, however, tells an entirely different story. The average off market price for a pended duplex or small multi family property for the week was $161,237. For the same week in 2008, that number was $92,656.
The number of sales week over week was a bit less promising, dropping 16 percent. Traditional sellers for the week represented 19 percent of the transactions. This is more than double their market share for the year before.
New listings continued to be few and far between, dropping 38 percent week over week. Just over one quarter of the new inventory for the New Year was offered by traditional sellers, an increase of three percent year over year.
While the months supply of inventory and increased traditional seller market share are good news, it’s important to remember the vast majority of the market is still controlled by lender mediated transactions.
While foreclosed duplexes seem to be increasingly rare, the same cannot be said in the single family home market. There are persistent rumours of a shadow inventory of foreclosure properties being kept off the market by banks, though the validity of those rumors is difficult to substantiate.
If they exist, we’re all likely to lose our balance.
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Minneapolis Duplexes Hibernate In Winter Too
January 5th, 2010 categories: Twin Cities Real Est
Whether it’s a single family home or duplex, new listings for the week ending December 26, 2009, appear to be in for a long winter’s nap.
MAAR reported today that the number of new listings dropped 18. 9 percent from the same week last year.
The number of new multi family listings was down 43.3 percent.
In all, the amount of inventory available for purchase is at its lowest mark since April, 2005. In fact, for the first time since 2005, there are less than 20,000 properties available on the market.
Pending sales, on the other hand, appeared to just be cat-napping. The number of single family homes that received purchase agreements for the week was up 53.1 percent over last year.
Duplex and small multi family property pended transactions were up 30 percent. Of those that left the market, 15.39 percent were offered by traditional sellers. Last year, all of the pended properties involved lenders in the negotiations.
The good news is the average off market price for the week was $76,531. This represents a significant wake up from last year’s $47,955.
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