Archive for the 'Twin Cities Real Est' Category

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Bouquet of rosesEthel Merman may as well have been belting about the Minneapolis and St Paul duplex market the week ending March 28, 2015, when she sang “Everything’s Coming Up Roses”.

There were 22 Twin Cities duplex, triplex and fourplex owners who accepted offers during the week. This is almost double the 12 sellers who did the same for the week in 2014.  Almost 91 percent of this week’s successful sellers will emerge from closing with an equity check in their hands.

The average off market price for pended duplex listings was up slightly over last year; from $201,455 to $204,472.

There was good news for buyers during the week as well. Twenty-seven new listings came onto the market, 85 percent of which are being sold by traditional sellers. Last year, there were just 16 new listings during the same period, with 93.7 percent of them belonging to traditional sellers.

New Listings sprang up on the single family home market as well, rising 10.4 percent. Pending sales were up as well, with 1360 more sellers accepting offers; an increase of 27.6 percent. In continued signs of a slowing balancing market, the total amount of Inventory was also up 2.4 percent.

For now, though, life couldn’t be better if you’re in the market to sell your Minneapolis or St Paul duplex.

Minneapolis Duplex Sellers Make A Comeback

said on April 2nd, 2015 categorized under: Twin Cities Real Est

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One horned rhinoceros in Kaziranga National ParkThe last few years duplex sellers in Minneapolis and St Paul were almost as endangered as black rhinos.

Duplex owners found themselves upside down, in an environment with little lending options and bottom-feeding buyers willing only to pay pennies on the dollar.

The recovering economy, low interest and vacancy rates combined with high rents, however, have helped Twin Cities duplex sellers make a roaring comeback.

The week ending March 21, for example, saw 35 new duplex, triplex and fourplex listings come on the market, 85.7 percent of them owned by equity sellers. Compare this to last year, when the week saw just 26 new listings, with 76.9 offered for sale by traditional sellers.

With more to chose from, buyers may have been taking their time during the week. Fifteen listed properties received offers, with 86.7 percent of those purchase agreements signed by traditional sellers. The average off market list price of these properties was $212,253.

During the same week one year ago, 18 listed properties went under contract. Of these, 78 percent did not involve a bank in the price negotiations. On average, these properties sold for $185,111.

The single family home market also saw a seller resurgence as the number of New Listings increased 22.1 percent. Pending sales also jumped, rising 27.1 percent.

However, as we discussed last week, we are starting to see an increase in Inventory, which is a sign we are moving toward a more balanced market. Overall Inventory was up 1.7 percent for the week. While that’s not a number that will immediately shift the balance, it continues to be one worth monitoring.

Minneapolis Spring Duplex Market Warming Up

said on March 24th, 2015 categorized under: Twin Cities Real Est

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duplex market in springThere may be snow on the ground, but buyers and sellers in the Minneapolis and St Paul duplex market believe it’s spring.

In the week ending March 14, 2015, there were 17 duplex sellers who received and accepted offers on the properties they had for sale. Of these, 88.2 percent are owners with equity in the properties. This was reflected in the average off-market final list price of $221,285.

Last year during the same week, 93.3 percent of the Twin Cities duplex sellers were not in distressed circumstances and came away from the closing table with a check in their hands. These sellers averaged a final sales price of $201,313.

There was good news for buyers in the latest market statistics as well. There were 38 new listings for the week. This is up 6 from last year’s 32. Of the new listings, 92.1 percent of this year’s inventory is being offered by sellers with equity. Last year, 87.5 percent were owned by traditional sellers.

In the single family market, the number of Pending Sales rose 14.3 percent, while the number of New Listings rose 20.6 percent.

While February saw a Median Sales Price increase of 9.3 percent to $200,000, there were also some early signs we may be starting toward a more balanced market. Those included the average number of Days on Market ticking up 7.1 percent to 106, as well as the Months Supply of Inventory rising 3.3 percent to 3.1. While still a sellers market, any increase in either of those statistics suggest we may be headed for a market that gives buyers more options.

Minneapolis Spring Duplex Market Is Here

said on March 3rd, 2015 categorized under: Twin Cities Real Est

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Spring flowers on a black backgroundWhile the weather may not reflect it, the Minneapolis and St Paul spring duplex market has arrived.

Nowhere was this more evident the week ending February 21, 2015, than in the 25 new duplex, triplex and fourplex listings that came on the market. After all, everybody, it seems, wants to wait until spring to sell.

Of these, 88 percent were offered for sale by owners with equity in their properties.

Last year, there were just 18 new listings during the week. However, a whopping 94.4 percent were offered by equity sellers.

Fourteen investment property owners accepted offers on their properties during the third week of February this year. Curiously, even though there is a dwindling supply of distressed property inventory on the market, just 64.3 percent of those transactions will involve traditional sellers. Off market final list prices ranged from $84,900 to $369,900, with the average coming in at $204,778.

One year ago, there were 17 successful Twin Cities duplex, triplex and fourplex sellers during the same week. Curiously, almost the exact percentage, at 64.7, were traditional sellers. Prices ranged from $59,565 to $422,500, with an average sold price for the week of $185,902.17.

The single family home market saw the number of New Listings for the week increase 29.8 percent. Meanwhile, Pending Sales were up too; rising 36.4 percent. Combined, this resulted in the total amount of Inventory on the market decreasing 3 percent.

With next week’s promised thaw, spring will have officially have arrived.

 

Comments Off on 2014 Minneapolis Duplex Market Full Of Promise And Shortages

median duplex sales priceWhile I usually blog on Tuesdays about the most recent data we have on listings and sales in the Minneapolis and St Paul duplex market for the week that just finished, January is a great time to look back on the year before.

And when we look at 12 months of data, rather than a week or even a month, we can start to see trends.

Take, for example, the Active Listings Dollar Volume for December, 2014. For the month, there was $92,600,365 in inventory available for purchase. While it wasn’t up much from December 2013’s $87,202,620, it nonetheless represented an increase.

However, when I say there’s very little on the market for duplex buyers to choose from, nothing underscores this more than looking at the Dollar Volume for Active Listings in December 2006, when it was $342,941,330; the last year considered part of the real estate peak.

Yes, many of those properties were over valued. However, that can’t explain everything. Closer examination of the numbers reveals in the month of December, 2014, there were just 468 active listings for duplex buyers to choose from; the lowest number of any month in more than a decade.

To put it in perspective, in December 2006, that number stood at 1395. In 2007, it was 1660.

Of course, if buyers have nothing to purchase, there are bound to be fewer sales. And so it was that in 2014, there were 1208 duplex listings that sold. This was the smallest number in more than a decade. For comparison, again to the boom years, there were 2033 sales in 2005, 2057 in 2010, and even 2013 saw 78 more deals than 2014.

Granted, values haven’t yet hit the $250,000 Median Sales Price of 2005, either. However, the $166,500 we ended 2014 with is still a great impovement over the $83,250 Median of 2009.

If you’re thinking of selling your duplex this year, things are looking up. Changes in FHA lending requirements (see my blog post later in the week) and pent-up demand are pointing toward a big 2015. Just remember, the spring duplex market always starts the week after the Super Bowl . This year, that’s Monday, February 2.

Of course, there might be a slight delay if we have -50 wind chills that week!

Investment Property Demand Should Remain Strong

said on January 9th, 2015 categorized under: Twin Cities Real Est

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businessman choosing rent or buy  real estate conceptI spent the morning at the Minnesota Real Estate Journal’s 2015 Apartment Summit. The conference showcased eight separate panels of investors, researchers, lenders and multifamily property developers.

Much of what was said was relatively specific to large apartment complexes and developments.

There were several opinions that held relatively consistent among the various panel members:

  • The demand for investment properties should remain strong through the end of 2015.
  • Today’s tenant population covers a broad spectrum of people, ranging from milennials to empty nesters.
  • Rents should see a 2-3 percent increase through the end of the year.

When I listened closely, however, I also picked up some not so subtle hints things may be starting to change.

Toward the end of the morning, managers of numerous large, upscale multifamily properties owned by Greystar, IRET and Timberland Partners shared what their 2014 tenants had named their top reasons for leaving when they moved. They were:

  1. Job relocation.
  2. Buying a house.
  3. Rent increase or losing a roomate.

All three said it was the first time they could recall “Buying a House” ranking that high in their exit poll in years.

That may be a sign of good things for the housing market.

It may also be among our first subtle signs of a changing rental market.

We’ll be watching.

Minneapolis Duplex Sales Become Predicatble

said on September 24th, 2014 categorized under: Twin Cities Real Est

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duplex sales exciting or boringSometimes, the news in the Minneapolis and St Paul duplex market just isn’t very exciting.

Take, for instance, the week ending September 13. In many ways, it was almost exactly like the same week last year.

There were 42 new listings for the week, 83.3 percent of them were brought to the market by traditional sellers. Last year, there were 40 new investment opportunities. At 90 percent, almost all of these were offered by equity sellers.

The one area where there was a slight difference in the week over week numbers was in the number of pending sales. For the second week of September 2014, 18 Twin Cities duplex, triplex and fourplex sellers received and accepted offers on their properties. At 93.3 percent, most were equity sellers. This is also reflected in the average off-market list price, which was a healthy $234,428.

Last year for the week, there were just 10 sellers who accepted offers on their multifamily properties. While 90 percent of them were equity sellers, on average, they sold for $211,709. Once closed, this year’s sellers should fare slightly better on average.

Meanwhile, Pending Sales of Twin Cities single family homes declined 1 percent for the week. Meanwhile, the number of new listings was 1.6 percent higher than one year ago. These factors helped contribute to a year-over-year total market inventory increase of 9.5 percent.

As we ease our way deeper into fall, perhaps even and predictable is a great place to be.

Minneapolis Duplex Sellers Come Out In Numbers

said on September 16th, 2014 categorized under: Twin Cities Real Est

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???????????????????????????????????????????????????????The biggest news in the Minneapolis and St Paul duplex market for the week ending September 6, 2014 is the absolutely robust number of new listings that came on the market.

A shopping 33 new duplex, triplex and fourplex properties appeared on the MLS as new listings. This represents a 42.4 percent increase over the number of new listings that came on the market last year.

Of the sellers who put their properties on the market, 93.9 percent will not have to negotiate with a bank in order to agree to the terms in a purchase agreement. Ironically, this is down ever so slightly from the 94.7 percent of last year’s 19 sellers who could say the same.

There was almost as good of news on the pending sales front. There were 20 owners who accepted offers during the week, 85 percent of whom have equity in their properties. The average off market list price for these duplexes was $221,292.

Last year, there were 16 sellers who accepted offers. And while it’s still market share, just 75 percent of those folks did not have to negotiate with a bank in order to sell. Ironically, the 2013 sellers managed to average $236,342 as a final sales price; a number higher than the average list price for the group this year. Going forward, let’s hope this doesn’t become a pattern.

In the single family market, new listings were up 9 percent for the week. Pending sales took a small step forward, up 1.4 percent over last year. However, overall inventory was up 9.7 percent.

This resulted in the average number of days on the market rising 2.9 percent in August 2.9 percent to 68, as well as the Months Supply of Inventory climbing to 4.4 percent. A market is considered balanced between buyers and sellers when there is a 5 month supply of inventory.

Anything more and it once again becomes a buyer’s market.

 

Signs Of Fall In The Minneapolis Duplex Market

said on September 9th, 2014 categorized under: Twin Cities Real Est

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If you look carefully, you will start to see signs of fall. Some of the leaves hThree maple autumnal leaves. Topview.ave a subtle change in tint, and the air has a different smell and feel to it than it did one month ago.

There are similar small, almost invisible signs of change in the Minneapolis and St Paul duplex market as well.

There are currently 589 active duplex, triplex and fourplex listings on the Multiple Listing Service. While this sounds relatively small, it’s important to note this represents nearly a seven percent increase in inventory from August of last year.

In fact, for the week ending August 30, 2014, there was an 11 percent increase in the number of new multifamily listings on the market in the metro than the same week in 2013.  The vast majority, at 92.8 percent, are owners who will not have to consult a bank to receive permission to sell. Last year, just 68 percent of the new sellers could say the same.

Of those sellers who accepted offers, 73 percent were traditional, equity sellers. While this market share is lower than it has been over the summer, it still represents a significant increase from the 57 percent of new sellers in 2013. The average final list price for these properties was a whopping $266,233; up significantly for the average sold price for the week in 2013 of $178,989.

On average, 2014 sellers are accepting offers at 94.3 percent of their initial list price. The median list price for sold multifamily properties to date in 2014 is $174,900. Last year, sellers were accepting offers at, on average, 100 percent of their median price of $155,000.

Perhaps the biggest sign of an impending change is we currently have a six month supply of inventory on the market. What this means is if there was no new inventory for buyers to choose from, it would take six months for the current buyers who are looking to absorb everything that’s for sale. One year ago, there was a five month supply.

It’s important to note a real estate market is considered balanced when there’s a five to six month supply. In other words, neither the buyer nor the seller is in the driver’s seat.

And that’s a long way from where we’ve been.

 

 

Minneapolis Duplex Market Evokes Chicken Little

said on September 3rd, 2014 categorized under: Twin Cities Real Est

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The screamerSometimes things that happen in the span of a single week in the Minneapolis and St Paul duplex market could cause a person to shout the sky is falling.

Of course, the sky isn’t falling any more now than it did for Chicken Little. It’s just that it could appear so in the isolated view of the week ending August 23, 2014.

There were 20 Twin Cities duplex sellers who accepted purchase agreements on their properties during the week. At 90 percent, almost all of those sellers had equity in their property.

This is a stark contrast to the same week in 2013. At that time, just 71.4 percent of the 21 sellers who accepted offers left closing with a check in hand. Ironically, these folks sold at an average price of $228,467; over $12,000 higher than the average final list price for this year’s group.

The banks contributed much more of the market’s new inventory last year, when just 60.7 percent of the new sellers were not facing foreclosure or a short sale. This year, 88 percent of the new listings that appeared on the MLS are being sold by equity sellers.

Meanwhile, the single family home market saw the number of New Listings rise 3.5 percent over the week last year. The good news is Pending Sales were also up; rising 4.5 percent. In all, Inventory declined 10.1 percent.

As we head toward fall, we should be able to get a better idea of where the market truly stands.