Minneapolis Duplex Sales Cause Math Anxiety

math-problem1It’s Tuesday, which means MAAR released it’s weekly report of real estate activity in the Twin Cities metro area.

It also means I spend half the day doing the calculations that MAAR doesn’t; all of the statistics for the multi-family housing market for the week ending March 14, 2009. More specifically, it means I spend a great deal of time making sure I’m right.

After all, duplex sales can’t keep going up, can they?

Apparently so. 

The number of small multi-family properties that accepted purchase agreements for the week  sales were up 25 percent from their mark in the comparable week last year. Of these, 91 percent were lender mediated, up from the 83 percent that were last year.

While the average off market price for the week was still well below the 2008 mark of $152,000, the average pended price of $95,460 is much healthier than we’ve seen most of this year.

Meanwhile, the number of duplexes new to the market fell by almost half. Of this year’s total, 69 percent were bank owned. This is down slightly from the 71 percent that were last year.

Tallies over in the single family market caused a bit of tension as well. While sales tapered off slightly for the week, they are still 14.9 percent higher than last March at this time.

The number of new listings was down this year as well, dropping 13.9 percent week over week. For the year, the total number of active listings is down 14.7 percent.

Let’s hope the numbers keep climbing.  I can handle it.

I’ve got a huge bottle of Advil…

Spoken by Kari Lundin | Discussion: No Comments »

Minneapolis Duplex Sales Show No Signs Of Slowing

The duplex sales engine kept rolling at a healthy clip for the week ending September 27, as pending sales of property were again up 144 percent over the same time last year.

The trend toward most of these transactions involving a lender-negotiated sale jumped as well. A full 92.3 percent of those multi-family units which received accepted purchase agreements involved either a short sale or foreclosure. This is an increase of 300 percent over the amount of lender involvement during the same period last year.

MAAR released its figures for the single family market this morning. Like their multi-family counterparts, home sales also continued to transcend the gloom, with pending sales up 58.4 percent from 2007.

For the first time in weeks, the number of new listings also increased; up 9.9 percent over last years numbers. Nonetheless, the market overall still has about 3000 fewer homes on it than it did at the end of September last year.

Single family homes are averaging offers that are 92.2 percent of their list price, with the numbers of days it takes to receive that offer up slightly to 145.

It’s important to remember, no matter the headlines, that loans are still out there for buyers with good credit and a down payment. Inventory is plentiful and interest rates remain near a 40-year low, offering investors and home buyers alike opportunities we’re not likely to see again in our lifetimes.

Spoken by Kari Lundin | Discussion: No Comments »

Minneapolis Duplex Sales: Are We Happy Yet?

Real Estate Market Forecaster

Real Estate Market Forecaster

I don’t know about you, but after Wall Street’s news yesterday, I’m watching my economic mood ring, looking for any change in color. Is it turning red?

As it does every Tuesday, MAAR released its weekly market activity report today. And, just like last week, this week’s report shows a substantial leap in pending single family home sales over the same period from last year.

Should we be happy?
 
Home sales rose 49.8 percent over their 2007 same week mark. It’s important to keep in mind that the screeching halt of home sales in August and September of 2007 was unusual. What’s interesting to note, however, is that the Twin Cities metro area home sales are currently slightly ahead of the pace set in 2006; which was a time when most of us thought everything was right with the real estate world.
 
Duplex sales continued at an equally healthy clip, being 240 percent ahead of the same week last year. While only 20 percent of last year’s sales for the period were lender-owned, 79 percent of this year’s transactions involved a bank. While that seems high, 79 percent is down significantly from the figures we’ve seen all summer, which have been in the 89 to 95 percent range.
 
Why the flurry of activity? Speculation is that buyer’s have been scrambling to take advantage of the closing window on seller-assisted down-payment programs like Nehemiah, Ameridream and Genesis. Of course, reduced interest rates and the new $7,500 federal tax credit may also be at play.
 
Another noteworthy statistic is that the supply of the number of homes for sale is presently down 9.0 percent from the same time last year. Again, these figures are in keeping with those of 2006; when we all were in a much better mood.

Spoken by Kari Lundin | Discussion: 1 Comment »

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