Archive for the 'Twin Cities Real Est' Category

Duplex Sales Are Up

said on October 15th, 2013 categorized under: Twin Cities Real Est

1 Comment »

duplex sales increaseIf you’re a Minneapolis or St Paul duplex seller, things are looking up. Way, way up.

For the week ending October 5, 2013, the 25 duplex sellers who accepted offers on their properties did so at an average final list price of $233,584.

This shattered the average sold price for duplex sellers the same week in 2012, who, on average. received $174,750 for the sale of their duplexes. Now, just 44 percent of these 25 sellers had equity in their properties compared with the 68 percent of this year’s sellers who could say the same.

Inventory continued its slow growth during the week, which is greatly needed. There were 34 new listings, the bulk of which (73.5 percent) were brought to the market by equity duplex sellers. Last year, just 51.7 percent of the 29 new duplex, triplex and fourplex listings did not involve bank negotiations.

The single family home market saw the number of new listings increase 17.9 percent , pending sales rose 2.4 percent, and total inventory was down 6.2 percent.

In September, the Twin Cities Median Sales Price was up 11.7 percent over last year to $195,000.

Let’s hope the good news continues.

Minneapolis Duplex Sales Warm For Fall

said on October 8th, 2013 categorized under: Twin Cities Real Est

Comments Off on Minneapolis Duplex Sales Warm For Fall

Sunny autumn foliageAs we drift into fall and temperatures start dropping, the Minneapolis and St Paul duplex market continues to generate heat.

For the week ending September 29, 2013,  there were 25 duplexes that went from active to pending listings on the Twin Cities’ MLS. Of these, 72 percent are being sold by sellers with equity. While the average final list price was $202,364, it’s important to note one was listed at $539,000, and five more had list prices greater than $300,000.

Last year, just 17 duplex sellers accepted offers during the week. Just 52.5 percent of these folks left closing with a check in their hand. On average, they sold for $227,931, with the high seller going for $435,000.

There were 34 new listings for the last week of September, 2013. While the majority (64.7 percent) belong to traditional sellers, this is not too far ahead of the 63.9 percent market share of last year’s 34 new sellers.

The single family home market continued along at a brisk pace for the week, with pending sales up 12.2 percent. While inventory grew 10.3 percent for the week, overall it remains 5.9 percent lower than last year.

As we creep toward winter, let’s hope all of the good news continues.

Duplex Sales Explode

said on October 2nd, 2013 categorized under: Twin Cities Real Est

Comments Off on Duplex Sales Explode

duplex sales explodeWow.

The final average, off-market list price for a Minneapolis or St Paul duplex the week ending September 21, 2013, was $212,871.

Compare this to the average sold price from the same week last year of $128,318.

Granted, listing prices are rarely the same as selling prices. Most of the time, the actual amount a duplex sells for is less than the seller was asking.

Nonetheless, considering sellers in the Twin Cities real estate market are currently averaging sold prices of 97 percent of what they were asking, so it’s unlikely the sold prices will change much.

Of the duplex sellers who accepted offers during the week, 73.7 percent have equity in their properties. Four of these properties had list prices above $300,000, which is something we haven’t seen too much of the past few years. For the week last year, there were no listings above $300,000, and just 41.2 percent of those who sold were traditional sellers.

Duplex owners who’ve been considering selling have clearly begun to test the waters, as there were 27 new listings for the week. A whopping 81.5 percent of these new listings belonged to traditional sellers. Last year, the week saw just 16 new duplex investment opportunities come on the market; 62.5 percent of which belonged to owners with equity.

Numbers from the single family home market for the week suggest there are changes in the wind. While new listings were up 13.3 percent over last year, pending sales were actually down 5.5 percent. Whether this is an isolated incident or a trend is yet to be seen.

In all, it’s good news for duplex sellers; who’ve been waiting  a long time to hear it.

Are Duplex Prices About To Stabilize?

said on September 24th, 2013 categorized under: Twin Cities Real Est

Comments Off on Are Duplex Prices About To Stabilize?

duplex prices level offBy all accounts, the Minneapolis duplex market is recovering from the real estate crash nicely.

All year, here and elsewhere, there have been reports of increased sales activity and, more importantly, rising prices.

However, we’ve also read these rising prices have been driven largely by low interest rates and a lack of inventory.

Brace yourself: that may be about to change.

Countless duplex owners who have wanted to sell for years have been sitting on the sidelines, waiting for their chance. And many have begun to seize the opportunity.

For the week ending September 14, 2013, for example, there were 34 duplexes, triplexes and fourplexes that became available for sale in the Minneapolis/St Paul market. Most (70.6 percent) belong to traditional sellers.

Compare this to 2012, when there were just 20 new listings for the week, 60 percent of which were sold by owners with equity.

There were 12 small multifamily property owners who accepted offers the second week of September this year; up just one from 2012. However, 83.3 percent of this year’s happy sellers had equity in their properties. Traditional sellers usually translate into higher prices, and the average off market list price for the 2013 crew was $205,900.

Last year, just 27.3 percent of the sellers didn’t involve banks in their decision, and that resulted in an average sold price of $140,659.

The single family home market has also seen a bit of an influx of inventory, with new listings up 19.5 percent for the week. Pending sales were also up, rising 8.3 percent over last year. In all, inventory is still down 8 percent from where it stood one year ago.

As supply begins to rise to meet demand, keep an eye on stabilizing prices, and a subsequent slowing in property appreciation.

Minneapolis Single Family Home Sales Decline

said on September 18th, 2013 categorized under: Twin Cities Real Est

Comments Off on Minneapolis Single Family Home Sales Decline

duplexes for sale, sell a duplexIf there’s news to report about the Minneapolis and St Paul duplex market for the week ending September 7, 2013, it actually isn’t about investment properties…

It’s about single family home sales.

And the news is, the number of pending home sales for the week dropped 4.5 percent, which represents the first drop in year-over-year sales in many, many months.

Whether this is a reaction to climbing interest rates, or simply an unusual blip on the radar is yet to be seen.

Minneapolis duplex sales, however, saw a year-over-year increase. There were 18 duplex, triplex and fourplex owners who received and accepted offers during the week; 72.2 percent of these have equity in their properties. On average, these listings left the market at a final list price of $207,978.

Last year during the first week of September, there were just 12 Twin Cities duplex sellers who accepted offers. Even though 83.3 percent of them were equity sellers, their properties averaged a final sales price of just $164,116.7.

However, this rise in average sales price continues to largely be a function of limited inventory. There were 31 new listings for the week in 2012, 48.4 of which belonged to equity sellers. This year, there were just 18 new duplex listings, with 72.2 percent coming from traditional sellers.

With the Federal Reserve’s announcement today of their intention to keep interest rates low, it will be interesting to see what the fall market brings.

Minneapols And St Paul Duplex Sellers Come Out Of Hiding

said on September 10th, 2013 categorized under: Twin Cities Real Est

Comments Off on Minneapols And St Paul Duplex Sellers Come Out Of Hiding

minneapolis duplex sellersIf asked to name one thing that’s changing about the Minneapolis and St Paul duplex market, my answer would be inventory.

After a year of it being in short supply, sellers have begun to test the water, and slowly, we’re seeing the number of new listings rise.

For the week ending August 31, 2013, for example, there were 25 new listings, 64 percent of which were brought to the market by equity sellers. While this figure doesn’t blow away last year’s 19 new listings and 36.8 percent traditional sellers during the same time frame, it nonetheless represents roughly a 30 percent increase.

Pending sales for the week told a different tale. There were 16 Twin Cities duplex sellers who received and accepted offers. Most (56.3 percent) were equity sellers. While the average final list price of these properties was a whopping $181,481, it’s important to note the group including a listing at $750,000, which is a rarity. When I remove this transaction, the 15 other properties finished at an average list price of $143,580.

Last year, there were 18 properties that sold during the same week. Fifty percent of these belonged to equity sellers, and they finished at an average sold price of $136,431.

The big news on the single family home front is the Median Sales Price for the month of August was up 16.9 percent over last year to $208,000.

On average, properties are selling for 97 percent of their original list price, largely due to there being just a 3.6 month supply of inventory on the market.

In other words, it’s a sellers market…which may be exactly why we’re seeing more of them.

Are Minneapolis-St Paul Ripe For Rent Increases?

said on September 9th, 2013 categorized under: Twin Cities Real Est

1 Comment »

minneapolis duplex vacancies secondIt isn’t often Minneapolis-St Paul ranks second for anything in national rankings. But according to a recent report from Reis, a company that tracks real estate information nationally, the Twin Cities is second only to New York for the lowest vacancy rate in the nation.

Reis studied 86 U.S. rental markets and found that while New York had a vacancy rate of just 2 percent, Minneapolis-St. Paul was right behind at just 2.1 percent. Syracuse, NY and New Haven, Conn. are tied with the Twin Cities for second.

When vacancy rates are low, rents usually rise accordingly. However, the study found that while rent rose 3.1 percent from June 2012 to June 2013, it was only the 15th highest increase in the country. Seattle, on the other hand, experienced an annual rent increase of 6.2 percent.

This means there may be room for bigger rent increases in the Minneapolis and St Paul rental markets.

Before duplex owners get too excited and raise rent to crazy, it’s important to remember that low vacancy rates often inspire new construction.  And, this is true in Minnesota as well, with Finance and Commerce reporting an estimated 18,683 proposed new apartment units.

And they all get built, vacancy rates will rise. And when vacancy rates rise, landlords are faced with lowering rents and making concessions to attract tenants.

Comments Off on Dreams Come True For Minneapolis Duplex Buyers And Sellers

Magic WandDuring the last full week of August, both Minneapolis buyers and sellers saw their wishes come true.

After all, prices are up, making sellers happy, as are sales.

As the number of new listings increased, buyers suddenly had more properties to chose from, making them happy too.

So it’s a pretty good time to be a Minneapolis or St Paul duplex seller or buyer.

During the week ending August 24, 2013, 23 Twin Cities duplex owners received and accepted a purchase agreement on their property. Of these, 69.6 percent had equity in their properties. On average, the final off-market list price for these was $215,861.

Last year over the same stretch of time, there were just 12 Minneapolis and St Paul multifamily property sellers who accepted offers.  Of these, 75 percent had equity in their properties. The average sold price for these investment properties was $191,162.

Buyers received some good news during the week as well, with 28 new listings coming on the market. The majority of these belonged to equity sellers (67.8 percent).

In 2012, there were 20 new listings for buyers to chose from. Just 8, or 40 percent, were owned by people who either did not have to consult with a bank to sell, or were not a bank.

As we drift more toward the traditional, established routines of fall, let’s hope everyone interested in buying or selling a duplex continues to get their wishes.

Minneapolis Duplex Sales Provide No Answers

said on August 27th, 2013 categorized under: Twin Cities Real Est

Comments Off on Minneapolis Duplex Sales Provide No Answers

minneapolis duplex sellers have no answersWhen I compile the weekly duplex market statistics for the Twin Cities, I try to spot trends. Is the market picking up? Is it slowing down? Where are prices going? Where have they been?

And sometimes, there isn’t anything terribly revealing in the numbers. Take, for example the week ending August 17, 2013.

There were 14 Minneapolis and St Paul duplex, triplex and fourplex owners who accepted offers during the week. Of these, 64.3 percent were didn’t need to have a conversation with a bank in order to decide to sell. On average, the final listing price for these properties was $142,706.

During the same week last year, there were 19 duplex owners who accepted offers. Just 36.8 percent of these sellers had equity in their properties. On average, their properties sold for $144,936.78.

The number of new listings for the second week of August this year topped out at 32.  The vast majority, 87.5 percent, belonged to equity sellers. During the same week in 2012, there were 30 new small multi-family listings; just 56.7 percent of these were being sold by traditional sellers.

The single family home market saw the number of new listings jump by 27.8 percent. Pending sales also rose 8.7 percent during the week. Total inventory is down 10.1 percent.

Perhaps fall will bring more definitive answers.

Duplex Sellers Appear Out Of Nowhere

said on August 20th, 2013 categorized under: Twin Cities Real Est

Comments Off on Duplex Sellers Appear Out Of Nowhere

Suddenly Duplexes For SaleI did a cartoon double-take this morning when I saw the number of new Minneapolis and St Paul duplex, triplex and fourplex listings for the week ending August 10, 2013.

There were a whopping 63 new listings during the week. And 77.7 percent of those came from sellers with equity in their properties.

Compare that to 24 new listings during the same week one year before; 62.5 percent of which belonged to equity sellers.

There was a similar numbers explosion with the Minneapolis and St Paul duplex owners who accepted offers during the week. Of the thirty-nine who did so, 71.7 percent have equity in their properties. On average, the last price these duplexes were listed at was $190,169.

There were 66 percent fewer sellers during the same week last year. In other words, just 13 owners accepted offers on their properties. The vast majority, at 76.9 percent, were equity sellers, whose average sales price was $204,441.

The single family home market saw a 19.1 percent jump in the number of new listings for the week. Pending sales also continued to be up, rising 10.1 percent over the year before. In all, inventory decreased 11.3 percent for the year.

Rising inventory should help ease the frustration many Minneapolis buyers have been facing in their duplex search.