Archive for the 'Twin Cities Real Est' Category

Traditional Duplex Sellers Are Back

said on August 13th, 2013 categorized under: Twin Cities Real Est

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great time to sell a duplexIf there’s a trend in Minneapolis and St Paul duplex sales the week ending August 3, 2013, it’s that the traditional seller is definitively BACK.

Of the 26 duplexes, triplexes and four unit building owners who received and accepted purchase agreements during the week, a whopping 76.9 percent were people with equity in their properties. This was reflected in a higher average final list price of $179,919.

Last year, there were just 14 small multifamily property owners who received and accepted purchase agreements. Just 35.7 percent of those sellers left closing with money to put in the bank. And it wasn’t a lot, with an average sold price of $112,746.

During the last week of July, 2013, 28 new listings hit the market. Duplexes offered by equity sellers far outnumbered those listed by banks, with an 85.7 percent market share.

Of last year’s 19 new sellers, 68.4 percent didn’t have to consult with a lender in order to sell.

The single family home market continued to outpace last year’s market, with new sales up 15 percent, listings increasing 18 percent and overall inventory dropping 11.9 percent.

Tight inventory continues to force prices upward, with July’s Median Sales Price finishing at $208,000.

Let’s hope for more good news as we march toward fall.

Minneapolis Duplex Sales Trend Changes Again

said on August 6th, 2013 categorized under: Twin Cities Real Est

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New trend?Just when I think I’m on to the latest trend, things change. Just like the Minneapolis and St Paul duplex market just did.

For the previous four weeks, we saw a steady year-over-year decline in duplex prices. I was convinced this was a result of increased inventory and higher interest rates. And just as I was about to declare the market was changing, it did just that in a way that was completely unexpected.

In fact, for the week ending July 27, the average final list price for the 29 Twin Cities duplexes, triplexes and fourplex sellers who accepted offers on their properties was $213,489.

This certainly is better news since the average sold price for the 24 sellers during the same week in 2012 was $155,397.

This might be explained with the fact that 45.8 percent of the 2012 sellers had equity in their properties, compared with the 72.4 percent of this year’s sellers who do.

During the same week, traditional sellers also came out in force, contributing 87.1 percent of the 31 new listings. Last year, equity sellers brought just 60 percent of the 20 new listings to the market.

The single family home market also saw new listings increase by 19.7 percent, pending sales rise by 18.4 percent and overall inventory drop by 12 percent.

Minneapolis Duplex Sales A Tough Puzzle

said on July 30th, 2013 categorized under: Twin Cities Real Est

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minneapolis duplex sales puzzleI’ve been puzzled by the Minneapolis and St Paul duplex weekly market statistics the past few weeks.

Why?

Well, the pieces don’t seem to make a complete picture.

For instance, 64.7 percent of the pended listing sales for the week ending July 20 belong to traditional sellers, compared with just 50 percent for the same week in 2012.

So the gradual diminishing supply of bank-owned or negotiated duplexes for sale should bode well for traditional sellers, right? After all, buyers purchase distressed properties at a discount. So it stands to reason that the more properties being sold by traditional sellers, the higher the prices.

Not over the past few weeks.

Last year’s average sold price for the third week in July was $217,871.  This year’s average off market list price, however, was $207,141. And the average list price is usually a little higher than the sold price. This makes the fourth consecutive week this has happened.

The only plausible explanation I can come up with is the increase in interest rates has caused buyers to either qualify for a reduced mortgage amount, or be unwilling to take lower returns on their investment thanks to the reduction in cash flow caused by the higher cost of borrowed money.

There were 31 new duplex, triplex and fourplex listings during the week.  At 67.7 percent, most of these belong to traditional sellers. One year ago there were 34 new listings; just 47 percent of which were brought to the market by equity sellers.

The single family home market saw pending sales up 6.2 percent for the week, and does not appear to be experiencing the same anomalies as the small multifamily market.  New listings were up 25.1 percent, while inventory continued to be down 14.3 percent.

The Median Sales Price for single family homes for June was $210,000; up 17.5 percent from June 2012.

As the summer marches on, let’s hope we can at least find the border pieces of whatever this puzzle is about.

Minneapolis Duplex Sellers Make News

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

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minneapolis duplexes for sale riseThere was big news in the Minneapolis and St Paul duplex markets the week ending July 13, 2013: there were twice as many new listings as there were one year ago.

Of the 42 new listings, 80.95 percent of them are being offered by traditional sellers. Last year, there were just 21 new listings, with 71 percent of these sellers having equity in their duplexes.

There were 22 duplexes, triplexes and fourplexes that sold during the week. Half of these involved a bank in the purchase negotiations. Last year there were 16 property sellers who accepted offers over the same period of time, and half of these were traditional sellers as well.

What’s curious is the average final list price for the week this year was $197,618; down slightly from last year’s average sold price of $199,038. Whether this is a result of higher interest rates dampening buyer’s enthusiasm, or increased inventory is yet to be seen.

The number of single family homes new to the market increased 25.1 percent for the week, while pending sales also rose 26.5 percent. Inventory, however, remains down 15.6 percent from last year’s numbers.

Stay tuned.

Minneapolis Duplex Sellers Make News

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

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duplex newsThere was big news in the Minneapolis and St Paul duplex markets the week ending July 13, 2013: there were twice as many new listings as there were one year ago.

Of the 42 new listings, 80.95 percent of them are being offered by traditional sellers. Last year, there were just 21 new listings, with 71 percent of these sellers having equity in their duplexes.

There were 22 duplexes, triplexes and fourplexes that sold during the week. Half of these involved a bank in the purchase negotiations. Last year there were 16 property sellers who accepted offers over the same period of time, and half of these were traditional sellers as well.

What’s curious is the average final list price for the week this year was $197,618; down slightly from last year’s average sold price of $199,038. Whether this is a result of higher interest rates dampening buyer’s enthusiasm, or increased inventory is yet to be seen.

The number of single family homes new to the market increased 25.1 percent for the week, while pending sales also rose 26.5 percent. Inventory, however, remains down 15.6 percent from last year’s numbers.

Stay tuned.

Duplex Sales Cause Fireworks

said on July 16th, 2013 categorized under: Twin Cities Real Est

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duplex sales spark fireworksMinneapolis and St Paul duplex sellers set off fireworks during the week of the fourth of July, when a whopping 48 of them put their properties on the market.

Of these, 81.3 percent are being sold by people with equity in their investment properties.

To put in perspective how magnificent this truly is, compare it with the measly 13 new listings made available during the same week one year ago, when just 35 percent of the 20 new sellers would not have to include a conversation with a bank or asset manager in order to make the decision to sell.

There were 30 property sellers who accepted offers on their existing listings over the holiday. Strangely, while a majority were traditional sellers (56.7 percent), this number is lower than the market share we have recently become accustomed to seeing. Nonetheless, it’s well above the 35 percent of last year’s 20 sellers who left closing with cash.

Bizarrely, last year’s average sold price for the week was $202,107, which was higher than this year’s average final list price of $192,347.

The single family home sector saw increased listing activity, with the number of new listings for the week 14.3 percent higher than the same week last year. However, pending sales were still up, albeit by just 5.7 percent. Inventory is still 16.4 percent lower than one year ago.

Sellers, however, should still be encouraged by the explosive Median Sales Price for June, which was up 17.5 percent to $210,000 for the month.

Let’s hope there are enough fireworks left for the rest of the month.

Duplex Sales Pose A Riddle

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

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duplex sales inspire questionsHey, I don’t make up the data on Minneapolis and St Paul duplex sales, I only interpret it. And today? Well, I’m befuddled.

During the week ending June 30, 2013, there were 28 duplex, triplex and fourplex owners who received and accepted purchase agreements. Of these, 71.4 percent were equity sellers, who’s final average list price was $156,401.

Here’s where it gets weird. Last year during the same week, there were 21 duplex sellers who accepted offers. And, exactly 71.4 percent of them had equity in their properties.

One would think, with such relative similarity in the data, last year’s average sales price, and this year’s would be comparable. And yet, last year’s average sales price of $186,096, far eclipses the average for the week this year.

Weirder still is just 50 percent of the 26 new listings were brought to the market last year were being offered by traditional sellers. A whopping 82.9 percent of this year’s 41 new listings are not underwater.

Then again, that may be the answer to the drop in average sales price. There were 26 new listings during the week last year. There were 41 this year. That’s a 57.6 percent increase. But certainly, 15 more new listings do not make a market.

The single family home market didn’t seem to share in the market peculiarities. New listings were up 22.8 percent, pending sales up 22.4 percent and inventory remained down 16.8 percent from last year.

For the month of June, the Twin Cities Median Sales Price increased 17.5 percent to $210,000. Days on Market dropped to just 75, and sellers received 97.5 percent of their Original List Price during the month.

I guess we’ll see what the next few weeks bring to determine whether there’s a pattern we should either be alarmed or excited about.

Minneapolis Duplex Sales Explode

said on June 26th, 2013 categorized under: Twin Cities Real Est

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duplex sales explodeThe Minneapolis duplex market is blowing up!

For the week ending June 15, 2013, 26 duplex, triplex and fourplex owners received and accepted offers on their properties. Sixty-nine percent of these sellers have equity in their properties, which left the market at a final average list price of $215,325.

For the same week in 2012, there were 15 sellers who accepted offers for their Twin Cities duplexes. Fifty-three percent of these folks did not need to consult with a bank in order to sell, and they did so at an average price of $172,023.

The good news for buyers was that inventory was up the second week of June, with 37 new listings hitting the market. A whopping 86.5 percent of these sellers are neither banks nor short sales.

Traditional sellers had nowhere near the same market share the second week of June last year, with just 48.4 percent of the 31 sellers owing less than what the property was listed for.

Single family home sellers also took advantage of booming housing sales, bring 32.6 percent more new listings to the market during the week than last year. Of course, pending sales were also up 23.2 percent, leaving us still with a 20 percent decrease in inventory.

As we go forward, keep an eye on interest rates. They’ll play a key role in how long and how fast we truly recover.

Duplex Sellers Get Happy

said on June 21st, 2013 categorized under: Twin Cities Real Est

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3d human - jump sideWhen I saw 27 new Minneapolis and St Paul duplex, triplex and fourplex listings come on the market for sale the week ending June 8, I had to keep myself from jumping up and down.

After all, we’ve been suffering from a severe shortage of properties to sell most of the year. And 27 seemed like a higher number than what we’ve seen over the last several months. Of these, the majority are either bank owned or require a lender to be involved in the negotiations.

My enthusiasm waned quickly, however, when I saw during the same week last year there were 39 new duplex listings for sale. Just 41 percent of these were owned by traditional sellers, meaning the banks had the greatest market share then too.

The good news is there were 20 happy duplex seller during the first week of June. Of these, 55 percent will walk away from closing with a check in their hand. At an average off market final list price of  $178,251, those checks are likely to have a comma in them.

Of last year’s sold duplexes for the same week, 50 percent of the 14 were brought to the market by traditional sellers. At an average sold price of just $141,914, however, their departing checks were likely smaller on average.

Single family home sellers welcomed an average Median Sales Price for their properties during the month of may of $194,000. Sellers are getting closer to their asking price as well, with the average Percent of Original List Price Received up 2.5% to 97%.

In all, we have just 3.4 months of inventory left to sell.

This should certainly be cause for sellers to jump for joy.

Comments Off on Will Interest Rates Kill The Minneapolis Duplex Market?

rising interest ratesLast week, interest rates went up.

So?

When interest rates go up, buyers plain and simply can’t pay as much for Minneapolis and St Paul duplexes, triplexes and fourplexes.

That means if you’ve been thinking about selling, buyers can pay you more now than they may be able to next year.

Take, for example, the week ending June 1, 2013.  There were 25 Twin Cities duplex sellers who received and accepted offers on their properties. Of these, 48 percent will leave closing with a check in their pockets.

On average, these sellers had a final listing price on their duplexes of $152,892, which is up from last year’s sold price of $143,629 for the same week. In something of an unusual twist for the last several months, however, 81 percent of these 16 owners were traditional sellers, which is more characteristic of this year’s market.

The market continued to be at something of a standstill for new inventory, with 25 new listings becoming available; up one from last year’s 24. Sixty-eight percent of this year’s offerings are being sold by equity sellers; down slightly from last year’s 70.8 percent who could say the same.

Single family home buyers saw a 23.6 percent rise in inventory for the week, with pending sales also up 22.8 percent. Overall, inventory is down 23.1 percent.

It’s also interesting to note that in May, the average Median Sales Price for a home sold in the Twin Cities was $194,950; up significantly from April’s Median Sales Price of $182,000.

As long as interest rates stay low, it will continue to be a great time to sell.