Archive for the 'Twin Cities Real Est' Category

Duplex Sellers Give A High Five

said on August 27th, 2014 categorized under: Twin Cities Real Est

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Close-up of human hand on white backgroundFive doesn’t sound like a big number.

But it is when you convert it applies to new Minneapolis and St Paul duplex listings for the week ending August 16, 2014.

There were five more new listings that week than there were during the same week in 2014. And that small number translates into a 15 percent increase in the amount of new inventory for buyers to choose from.

Last year, 87.5 percent of the new listings belonged to sellers with equity. This year that number was 88.9.

The good news is the number of sales and their resulting prices were also up. There were 17 duplex, triplex and fourplex owners who accepted purchase agreements this year. On average, the final list price as they left the active market was $239,653.

In 2013, the week saw just 12 sellers accept offers; 67 percent of whom walked away from closing with a check in their hand. Perhaps as a result of more distressed duplex sellers, the average sold price for this group was just $138,904.

The single family market saw the number of new single family listings rise 3.3 percent while pending sales decreased 6.6 percent. Overall, total inventory increased 9.7 percent, which continues to suggest a shift toward a more balanced market.

 

Minneapolis Duplex Market On A Stick

said on August 19th, 2014 categorized under: Buying A Duplex, Twin Cities Real Est

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Corn dogAs the markers of summer’s end approach in the form of back to school announcements and food on a stick, the Twin Cities duplex market shows no sign of letting up.

Twenty-two duplex, triplex and fourplex sellers accepted offers the week ending August 9, 2014.  Of these, 86.4 percent have equity in their properties. There weren’t any spectacularly expensive sales, and just two pended at list prices below $100,000. So, on average, the group left the market at a final list price of $214,075.

During the same week last year, 21 duplex owners accepted offers on their investment properties. While 90.5 percent of them did not need to involve the bank in negotiations, they sold at an average price of $205,174. While this is below this year’s pended price, it’s important to note sold prices in the current market may be 3-4 percent below the listed price.

There were 31 new listings the first full week of August.  As has been the trend over the last year, most (83.9 percent) are being sold by traditional sellers. There were 29 new listings for buyers to choose from last year during the week, and just 72.4 percent of them did not involve distressed property sellers.

The single family home market saw the number of New Listings rise 8.7 percent for the week. Meanwhile, Pending Sales decreased 5.6 percent. Those two metrics moving in opposite directions resulted in a 9.4 percent rise in inventory.

During July, the Median Sales Price for a single family home in the metro was up 3.4 percent to $215,000. It’s important to watch the Months Supply of Inventory, as it is an early indicator of a changing market. That measure was up 15.8 percent to 4.4 months. This may signal the return to a more balanced market, which is usually achieved when there is a 5 – 6 month supply.

A return to a balanced market, where buyers and sellers are on equal footing, should slow outlandish price increases and return to the market to a more measured, healthy pace.

Minneapolis Duplex Sales Get Hot

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

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photo of a burning match in a smoke on a black backgroundThe week ending July 12, 2014 saw both the temperature outside and the Minneapolis and St Paul duplex market heat up.

Eighty percent of the 15 sellers who accepted offers during the week have equity in their properties. This was reflected in a final average list price for the group of $238,193.

Last year, there were 20 sellers who received offers during the same week. Just 40 percent of these folks left their closings with a check.  As the majority of the sales involved bank owned or negotiated properties, the average sold price of $170,772, was understandably well below this year’s average.

There was good news for duplex buyers during the week, as traditional sellers listed 91.8 percent of the 49 new listings. This represents seven more new opportunities than the week last year, where just 78.6 percent of the properties were offered by equity sellers.

There were more single family home sellers during the week than one year ago as well, as the number of new listings increased 8.7 percent. In what may be an early indication of a return to a more balanced market, at the same time, the number of pending sales decreased 8.4 percent as well.

In all, the total amount of inventory on the market was up 7.8 percent over one year ago.

This should be good news to buyers who have been facing multiple offer situations all year long.

Duplex Sellers Get Energy Burst

said on July 15th, 2014 categorized under: Twin Cities Real Est

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exhausted duplex chickSometimes, the well runs dry. And after six years of consistently blogging about Minneapolis and St Paul duplexes, triplexes and fourplexes, in late May and June, mine did just that.

I apologize for that.

The good news is, the market  has changed. And after some time away to recharge, I am once again loaded with topics to write about.

But let’s start with the basics.

In the week ending July 5, 2014, 28 Twin Cities duplex, triplex and fourplex owners received and accepted offers on their properties. Of these, 88.9 percent are traditional sellers with equity in their properties. On average, these investment properties left the market at a list price of $236,455.

During the same week last year, 15 property sellers received and accepted offers. On the surface anyway, these folks appeared to fare better than this year’s sellers with an average sales price of $296,360.

While I haven’t yet tracked enough weeks to conclude this is a sign of a market shift, it is important to note that new listings for the week were up 18 percent over last year. An increase in inventory may be responsible for price stabilization, as more properties on the market reduce the amount buyer competition. Again, only time will tell if this is the case.

The single family home market also appears to be undergoing something of a shift. New Listings for the week were up 14.8 percent over the week in 2013. Pending Sales were up as well; rising 17.4 percent. Overall Inventory also increased– by 7.7 percent, which may suggest the start of a return to a more balanced market.

Next week’s report is sure to tell us more.

Duplex Market Tries To Remember How

said on June 10th, 2014 categorized under: Twin Cities Real Est

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sunset Waterskier sprays water Whenever I haven’t done something for a while, I usually find I’m a little rusty at it and it takes some practice to get back in the groove.

The same can be said of the Minneapolis and St Paul duplex market. After seven years of foreclosures, short sales, and buyers markets, both duplex buyers and sellers seem to be having a hard time remembering what a sellers market is like.

For example, many sellers who’ve been waiting to sell their duplex and change their lifestyle seem to believe pricing should pick up where it left off in 2005-2006 when prices were sky high.

Buyers, on the other hand, keep hoping it’s 2010-2011, when duplexes were selling at numbers that created double digit cash on cash returns.

But it’s 2014, and as a result, neither is exactly true.

For the week ending May 31, 2014, 24 duplex, triplex and fourplex sellers accepted offers on their properties. A whopping 87.5 percent of these owners were traditional sellers. On average, the final list price of these properties was $159,569.

Last year, there were 27 successful sellers during the same week. Just 51.9 percent of these people had equity in their properties. Curiously, on average, these properties sold for $212,104, which goes counter to conventional thinking about the impact of distressed properties on pricing.

The number of new listings for the last week of May, 2014, was up six percent over last year. Nine out of ten of these duplex sellers have equity in their properties.  Last year, just 61.3 percent of the sellers did.

As we move deeper into a very late spring and early summer, we’ll hope we all get our traditional market groove back.

Duplex Sellers In A Photo Finish

said on May 20th, 2014 categorized under: Twin Cities Real Est

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race horsesIf the Minneapolis and St. Paul duplex markets were a horse race,  the first weeks of May in 2013 and 2014 would be neck and neck headed for the wire.

For the week that ended May 10, 18 Twin Cities duplex, triplex and fourplex sellers accepted offers on their properties. While this is one less than a year ago, the average final list price was $265,167. This is up dramatically from last year’s average sold price of $179,619.

This pricing disparity can’t be attributed to the presence of distressed properties, as just this year just 4 properties involved a bank in the negotiations, compared to 5 last year.

If duplex buyers had bet on increased inventory, it looks like it was a long shot. There were 38 new listings for the first full week of May, down one from last year. What’s different, however, is of those 38, 89.5 percent have equity in their properties. Last year, just 35.9 percent of the sellers could say the same.

Meanwhile, the number of New Listings in the single family home market surged ahead of last year by 6.5 percent. Pending sales faced a tougher race, up just .1 percent over last year. The good news for home buyers is overall Inventory increased 3.5 percent. This may provide a few more choices for frustrated shoppers.

Let’s hope the return of spring makes everyone a winner.

Duplex Market Rewriting History

said on May 14th, 2014 categorized under: Twin Cities Real Est

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History Book And Character Shows Books About The PastHistory dictates that when traditional duplex sellers dominate the marketplace, prices go up. And when foreclosures and short sales are plentiful, prices decline.

At least, that’s how it’s been in the past.

The spring Minneapolis and St. Paul duplex market, however, is rewriting history.

For the week ending May 3, 2014,  there were 24 Twin Cities duplex, triplex, and fourplex owners who accepted offers on their properties. The vast majority, at 87.5 percent, have equity in their properties and will leave closing with a check in their pocket. And yet, the average final list price on these properties was just $159,569.

During the same week last year, there were 27 small multifamily property owners who accepted offers. Just 51.9 percent did not involve negotiating with a bank in order to sell. However, this was not reflected in the average sales price of $212,104.

Traditional sellers also contributed 87.9 percent of the 33 new listings for the week. Meanwhile, only 61.5 percent of 2013’s new listings for the week belonged to sellers with equity in their properties.

The single family home market saw the number of New Listings for the week increase slightly; up 1.4 percent over last year. Meanwhile, Pending Sales dropped 13.4 percent. The combination of the two helped total Inventory rise 2.6 percent.

For the month of April, the Median Sales Price rose 7.6 percent to $196,425. This may be the result of the persistence of a seller’s market, where home owners are receiving 95.8 percent of their asking price within 89 days of being on the market.

Twin Cities duplex sellers are certainly hoping to see that trend return to duplex prices.

Duplex Sellers Love Spring

said on May 8th, 2014 categorized under: Twin Cities Real Est

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Happy duplex sellersEquity Minneapolis and St Paul duplex owners are coming out of hibernation as the spring housing market brings warm rays of rising prices.

During the week ending April 26, there were 35 new listings that came on the market. This is a 25.7 percent increase in new inventory from last year. The vast majority of these, at 80 percent, are being offered for sale by traditional sellers.

One year ago during the same week, traditional sellers were still hibernating. Just 52.2 percent of the 23 new listings at that time came from sellers who had equity in their properties.

There were 26 duplex, triplex and fourplex sellers whose properties were already on the market during the same week.  While 80.8 percent of these folks had equity in their property, the average final list price these duplexes left the market at was $194,381.

Last year, there were 28 happy duplex owners who accepted offers. And while just 60.7 percent of these sellers had equity, on average, they sold their properties for $236,535.

The single family market also saw a rise in New Listings, up 25.6 percent over last year. Meanwhile, the number or property owners who accepted offers on their homes decreased 2.4 percent from the total during the last week of April 2013.

In all, there was a .5 percent increase in housing inventory. While microscopic increases in inventory are a good sign, they are not enough to relieve buyer frustration over a lack of available properties to choose from.

This will continue to put upward pressure on prices.

Which should make this spring the best part of every seller’s year.

Duplex Sellers Finally Make An Appearance

said on April 29th, 2014 categorized under: Twin Cities Real Est

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Time to Sell - ClockApparently, many Minneapolis and St Paul duplex owners have decided it’s time to sell.

There were 37 new duplex, triplex, and fourplex listings that came on the market during the week ending April 19, 2014. The vast majority, at 86.5 percent, belonged to traditional sellers.

The total number of new listings for the week far outpaces last year’s 26 during the same stretch. Of these, 76.9 percent were offered for sale by owners with equity in their properties.

What’s interesting about this surge in new listings is there wasn’t a comparable surge in the number of sellers who accepted purchase agreements during the week. Just 16 sellers accepted offers for the week; 75 percent of those folks will walk away from the closing with a check.

These sellers averaged an off market final list price of $249,932. While this is substantially higher than the average sold price of $212,008 last year, it’s important to note one property in the average was listed at $699,900. This boosted the average by about $10,000.

These 16 sellers represent a 38.5 percent decline in the number of pended small multifamily transactions over last year. There were 26 sellers who sold during that week, 69.2 percent of which took money home from closing.

Meanwhile,  the single family home market saw a 2.8 percent decline in the number of New Listings. However, Pending Sales were also down 5.3 percent.

Granted, this year weather may be playing a role in the apparent decline in transactions. When we see more traditional spring weather, we may get a better read.

It’s Spring For Minneapolis Duplex Sellers

said on April 22nd, 2014 categorized under: Twin Cities Real Est

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Spring flowers on a black backgroundLike the first spring day after a long winter, the Minneapolis duplex market inspired hope the week ending April 12, 2014.

For the first time in years, 100 percent of the sellers who accepted offers had equity in their properties. On average, these 15 properties went off the market at an average final list price of $250,860. This number is likely to be somewhat smaller when the prices the properties sold for are ultimately tallied.

Last year during the same week, 17 duplex, triplex and fourplex owners accepted offers. Just 41.2 percent of these sellers were not in a distressed situation.  More bank involvement in sales, of course, resulted in a lower average sold price, at $202,753.

Spring was in the air for new listings as well, with 30 new properties coming on the market.  A whopping 93 percent of these investment property owners are traditional sellers.

This number of new listings for the week was actually up 25 percent from the same week last year, when just 24 sellers put properties on the market. Just half of these sellers had equity in their properties.

The single family home market saw a jump in new listings, up 19.9 percent over last year. Pending sales also rose slightly, up 1.8 percent. Thanks to a year-long lack of inventory, however, the total number of homes available was actually down 2.4 percent from one year ago.

In March, the Median Sales Price for a Twin Cities home was up 7.6 percent to $190,000. Sellers continue to get 95 percent of their Original List Price, as there is still just a 3.1 month supply of inventory available.

In other words, spring looks to continue to be a Seller’s Market, which is good news if you’ve been considering making the move.