Archive for the 'Twin Cities Real Est' Category

Minneapolis Tops The Nation In Rental Demand

said on May 26th, 2017 categorized under: Twin Cities Real Est

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We may not win Super Bowls or Stanley Cups in the Twin Cities, but we are tops in one very important number.

The Minneapolis-St Paul metro has the tightest vacancy rate of any major city in the U.S. according to the national multifamily housing consulting firm Witten Advisors.

According to a story in the Star Tribune, demand exceeds supply. To solve that, at the start of 2017 there were 8,440 units under construction, with another 31,752 in the planning stages.

This is good news, of course, if you’re a duplex owner in the Twin Cities. After all, lower vacancy rates mean higher rent.

So where are all of these tenants coming from?

According to Ryan Davis, senior economist for Witten Advisors, half of the growth in the rental market in the last seven years has come from renters age 55 and older, and 40 percent of the growth has come from renters who make $75,000 or more a year.

Matt Rauenhorst is vice president of Opus Development Co., an active developer of multifamily properties in the Twin Cites. In Opus’ higher end developments, he says residents are willing to pay more in exchange for “condo-like finishes”.

As more new construction multifamily properties come into the market, smaller property owners may eventually find the need to update properties to stay competitive at higher rent points.

For now, however, demand continues to exceed supply. It’s a great time to be a landlord in the Twin Cities.

Minneapolis Duplex Prices: We’re Almost There

said on July 20th, 2016 categorized under: Twin Cities Real Est

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In the past few days, you may have heard the median sales price for Twin Cities homes during June was all time high of $242,000; exceeding even the high water mark of 2006.

Lest we all panic in fear of 2006-like prices being followed by a value crash like 2007, media outlets were quick to report that these figures haven’t been adjusted for inflation. When they are, a $238,000 median sales price of 10 years ago is the equivalent of $285,000 in today’s market.

So what does this mean for duplex owners?

It depends on your point of view.

The median price for metro duplex sellers in June was $216,300. Ten years ago, not adjusted for inflation, the median price was $235,000.

This means there is still room for growth in terms of property values.

However, with just a 3.75 percent month inventory on the market, it is likely this will change. A balanced market is when there is a 5-6 month supply of properties available for sale. Less than that and it is a seller’s market. More than that and it’s a buyer’s market.

Of course, the current shortage of inventory may change when more and more duplex sellers believe it’s time to sell. Higher prices usually translate to more inventory.

If you’re thinking of selling, it would be a good idea to try and beat the crowd. Call or email me to see how you can benefit from this hot duplex market.

 

If You Need To Reach Me, Please Call

said on May 4th, 2016 categorized under: Twin Cities Real Est

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godaddy logoAs of this moment, I am not very happy with GoDaddy.

It seems they decided since I allegedly hadn’t responded to their request about asking me to convert to Office 360, they shut off my email.

Nevermind that I never received this supposed request. And if I had, they certainly didn’t reach out to contact me with the tenacity they use to get me to renew domain names 6 months before they expire.

So, if you need to reach me while they’re using the entirety of the 24-72 hours they allegedly require to retrieve my email out of “the archives”, please give me a call at the number in the upper right hand corner.

And if you’ve had this experience yourself and found a more expeditious route to resolution, please let me know.

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Charming S. Minneapols Duplex

Charming S. Minneapols Duplex

Sometimes, Minneapolis and St Paul duplex sellers get a “to do” list from their Realtor.

This list usually includes things like getting a Truth In Housing inspection, touching up paint, or simply decluttering a property. And because you never get a second chance to make a first impression, the Realtor recommends the tasks be completed before the property is exposed to thousands of buyers on the Multiple Listing Service (MLS).

If you’re looking to buy a duplex, especially with as little inventory as there is right now, knowing about these properties before they go on the MLS gives you a head start on the competition.

On your mark, get set, go!

I have the following properties coming on the market as soon as the sellers finish their “to do” lists. However, because I’m the listing agent, I can get you in to them now.

Uptown Duplex – 2 bedrooms down, 2+ up. Front porches on each floor, hardwood floors, and tons of light. Leases end in May, so either unit will be available for an owner occupant. $400,000.

S. Minneapolis Duplex – Beautifully maintained. Hardwood floors, arched doorways, wonderful light. 2 bedrooms up, 2 down, 2 car tuck under garage. Screened porch, fenced yard, and your own raspberry patch! $300,0000.

S. Minneapolis Duplex – Impeccably maintained duplex with room for master suite on third floor. 2 bedrooms up, 2 down, built-ins, fireplace, hardwood floors and a 2 car garage. Needs some cosmetic updating. $250,000.

N. St Paul Fourplex – Cash cow. Four three bedroom units with their own furnaces. All new windows. $399,000.

Edina Condominium – Spacious 2 BR, 2 BA in a park-like setting. Pool, exercise room, garage. Will be priced right.

If you have interest in seeing any of these properties before you have to compete with the buyers using only the Multiple Listing Service, give me a call at (612)290-5998. I’d be happy to get you in.

Minneapolis Duplex Sellers in Short Supply

said on April 11th, 2016 categorized under: Twin Cities Real Est

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Minneapolis Duplex for SaleThe Minneapolis and St Paul duplex market continued to suffer from a lack of inventory during the month of March.

There were 62 duplex owners who successfully sold their duplexes, triplexes and fourplexes during the month. The high seller was a duplex at 3444 Colfax Ave S, which achieved a sales price of $600,000. At the other end of the spectrum was an East St Paul duplex that closed for $36,000.

Eighty-four duplex, triplex and fourplex owners decided to get their properties on the market ahead of the spring rush in March. Of these sellers, 42 have already received and accepted purchase agreements.

Low vacancy rates continue to push rents higher. Meanwhile, continued low interest rates have begun to appeal to first time home buyers choosing to look for a duplex rather than a single family home.

It is a duplex sellers market. Buyers are jumping on listings in which they perceive value and in many cases, we are seeing multiple offers.

We must remember, however, that real estate markets have cycles. It won’t be a seller’s market forever.

Minneapolis Duplex Sales Head Toward Fall

said on September 17th, 2015 categorized under: Twin Cities Real Est

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Minneapolis Duplex SalesLet’s get back on track this fall by taking a look at what happened in the Minneapolis and St Paul duplex market the last week of August, 2015.

There were 25 duplex, triplex and fourplex sellers who accepted purchase agreements during the week. As you may have heard, our market has decidedly shifted toward traditional sellers, and this was the case here too. Seventy-five percent of the owners have equity in their properties they will take home from closing.

There were just 12 pended sales last year during the same week; most likely as Labor Day fell earlier. Of these, 83.3 percent had equity in their properties.

For buyers, there were 26 new listings during the last week of August in 2015 to choose from. Seventy-six percent of the sellers will not have to consult with a lender in order to receive permission to sell. Last year, there were just 9 new listings. All of those sellers had equity in their properties.

As we get deeper into fall, and past the threat or reality of changing interest rates, we will be able to get a better idea as to where the Minneapolis duplex market stands.

Minneapolis Duplex Sales Neck And Neck

said on June 25th, 2015 categorized under: Twin Cities Real Est

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Close-Up of Neck and Neck Horse RaceIf Minneapolis and St Paul duplex sales were a horse race, the second week of June in 2014 would win by a nose.

Last year there were 26 duplex, triplex and fourplex owners who accepted purchase agreements, 76.9 percent of whom had equity in their properties. This year, there were 24 successful sellers, and 75 percent of them will receive a check for equity at their closings.

On average, sales for the week last year closed at $306,096. This is unusual. This year, the average off market list price was more realistic, at $206,837.

New listings is the one category where 2015 finished ahead of 2014. There were 45 of them this year, 91.1 percent being offered by equity sellers. Last year, there were 44, with 93.2 percent being above water with their investment property.

In the single family home market, New Listings were down .8 percent, while Pending Sales were up 21.1 percent. Overall, inventory was down 6 percent from June last year.

There will be plenty more duplex sales races in the year; it will be interesting to see if 2015 takes a commanding lead over 2014.

Minneapolis Duplex Sellers Still In Charge

said on June 17th, 2015 categorized under: Twin Cities Real Est

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Money in the air.The Minneapolis and St Paul duplex market kept humming along the week that ended on June 6, 2015.

In that time, 23 Twin Cities duplex, triplex and fourplex sellers accepted offers on their properties. Of these, 86.9 percent are traditional owners who will leave closing with a check for their equity in their pockets. They should be big checks. The average off-market list price was a whopping $274,077.

Last year during the week, 19 sellers accepted offers. Of these, 94.7 percent left closing with money in their pockets. However, their properties sold for an average of $219,702.

New listings the first week of June in 2015 numbered 45, with 95.6 percent being offered by equity sellers. One year ago, there were 47 sellers new to the market, with 83 percent not in distressed circumstances.

The single family home market saw the number of New Listings increase just 1.4 percent, while Pending sales rose 10.9 percent. Overall, Inventory decreased 5.2 percent.

In May, the Median Sales Price for a single family home was $224,000. With an average number of Days on Market of just 76, sellers received on average 97.5 percent of their asking price.

It  continues to be a happy summer for duplex sellers.

 

Minneapolis Duplex Market Drives Toward Summer

said on June 10th, 2015 categorized under: Twin Cities Real Est

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duplex sellers in drivers seatThis spring has been a boom for Minneapolis and St Paul duplex buyers and sellers. So I’ve been showing and listing a lot of property. Unfortunately, that means a great deal of my time is spent in traffic.

I’ve found the state patrol generally frowns on my blogging and driving.

Yes, that was a joke.

During the week ending May 30, 2015, twenty Twin Cities duplex owners accepted purchase agreements for their properties. Of these, 85 percent belonged to sellers with equity in their properties. The average list price when these properties changed status on the Multiple Listing Service from Active to Pending was $188,650.

During the same week one year ago, 26 multifamily property owners accepted offers on their properties.  Of these, 76.9 percent left closing with a check in their hands. On average, these duplexes, triplexes and fourplexes sold for $207,494.

The number of New Listings for the week rose to 32 from last year’s 29.  Of the new investment opportunities for the week in 2015, 93.75 percent are being offered by equity sellers. This is remarkably similar to the 93.1 percent of equity sellers last year. These owners realized an average sale price of $207,494.

In the single family home market, the number of New Listings decreased 2.9 percent. However, Pending Sales rose 23.5 percent. Combined, overall Inventory was down 4.6 percent.

In May, the Median Sales Price for a Twin Cities Property rose 6.7 percent to $224,000. The number of Days on Market it took to achieve this dropped 5 percent to 76. Meanwhile, it continued to be a Sellers Market, as the Percent of Original List Price Received rose .7 percent to 97.5 percent.

As it’s been all year, it’s a great time to be a Minneapolis or St Paul duplex seller.

 

Twin Cities Duplex Market Continues To Bloom

said on April 21st, 2015 categorized under: Twin Cities Real Est

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duplex market springs to lifeThe spring Minneapolis and St Paul duplex market is well under way, in spite of what the temperature outside may say.

In the week ending April 11, 2015, 22 Twin Cities multifamily property owners received and accepted purchase agreements on their investment properties. Of these, 82 percent will leave from closing with a check in their hands rather than a settlement with their banks. When those sellers accepted offers, they did so at an average off market list price of $217,903.

One year ago during the same week, just 13 sellers accepted offers on their duplexes. One hundred percent of those sellers were able to deposit a check in their bank accounts. On average, these sellers realized a sales price of $258,496.

It seems Minneapolis and St Paul duplex owners are finally realizing it’s a good time to sell. Forty of them put their properties on the market during the week, with all but one of them having equity in their properties. Last year, there were just 30 new duplex sellers during the same time, with 87 percent being equity sellers.

The single family home market saw the number of New Listings increase 9.7 percent for the week, while Pending Sales jumped 17 percent. Overall Inventory  decreased .2 percent.

For March, the Median Sales Price of a single family home was up 10.5 percent to $210,000. The average number of Days on Market also rose 7.4 percent 10 102. Nonetheless, sellers continue to receive 95.9 Percent of Original List Price.

Once again, the Months Supply of Inventory rose by 3 percent to 3.4. A balanced market, where both buyers and sellers have equal negotiating power, occurs when there is a 5-6 month supply of properties on the market. However slowly it may be, it does appear we are heading in that direction.