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Deadline Pushes Minneapolis Duplex Market
March 9th, 2010 categories: Twin Cities Real Est
There are less than 60 days left to qualify for either the first time home buyer or repeat buyer tax credit.
That looming deadline may well have inspired the Twin Cities housing market’s 13.9 percent year-over-year jump in accepted offers for the week ending February 27.
While not as dramatic, the duplex and small multifamily property market also saw an increase in pended transactions; up 4.4 percent year-over-year.
Of the properties that pended, 19.46 percent were offered by traditional sellers; up from 11.6 percent for the same week in 2009.
While neither year posted particularly inspiring average off-market prices, the figure for the week in 2010 of $83,746, did nonetheless represent an increase of $805 over the year before.
The amount of new duplex inventory continued to trail last year’s mark, with just 45 properties coming on the market for the week. This represents a 30.7 percent drop from last year.
Of these new listings, 28.9 percent were offered by traditional sellers. While that’s a figure that appears thin, it is still more than twice as many as last year.
As the tax credit deadlines loom, let’s hope for continued good news.
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Minneapolis Duplex Market Studies Itself In The Mirror
February 2nd, 2010 categories: Twin Cities Real Est
The Minneapolis Area Association of Realtors released its weekly activity report last night, and it turns out that January of 2009 and 2010 are almost mirror images of one another.
Pending sales and new listings are down a bit from last year, and there’s a little bit more inventory on the market, but, by en large, it’s a wash.
For the week ending January 23, there were 2.3 percent fewer signed single family purchase agreements than there were for the previous year.
In the duplex market, however, the reflection from year over year had a few ripples in it.
The number of signed purchase agreements for the week in 2010 was down 31.4 percent from the 2009 mark. Of those properties that did receive and accept offers, 12.5 percent were brought to the market by traditional sellers. This represennts an increase of 4 percent year over year.
The average off market price for the week was $95,177; almost identical to 2009’s $95,371.
While the number of new listings to hit the market was virtually identical, this year traditional sellers were responsible for 40.35 percent of the new inventory. This is a stark contrast to last year’s market share of just 8.5 percent.
Hey, look at it this way. At least there aren’t any new wrinkles or gray hairs to contend with.
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Minneapolis Duplexes Hibernate In Winter Too
January 5th, 2010 categories: Twin Cities Real Est
Whether it’s a single family home or duplex, new listings for the week ending December 26, 2009, appear to be in for a long winter’s nap.
MAAR reported today that the number of new listings dropped 18. 9 percent from the same week last year.
The number of new multi family listings was down 43.3 percent.
In all, the amount of inventory available for purchase is at its lowest mark since April, 2005. In fact, for the first time since 2005, there are less than 20,000 properties available on the market.
Pending sales, on the other hand, appeared to just be cat-napping. The number of single family homes that received purchase agreements for the week was up 53.1 percent over last year.
Duplex and small multi family property pended transactions were up 30 percent. Of those that left the market, 15.39 percent were offered by traditional sellers. Last year, all of the pended properties involved lenders in the negotiations.
The good news is the average off market price for the week was $76,531. This represents a significant wake up from last year’s $47,955.
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Minneapolis Duplex Market A Stocking Stuffer
December 22nd, 2009 categories: Twin Cities Real Est
The Minneapolis duplex market was both naughty and nice the week ending December 12, 2009.
As a result, there were fewer presents under the Minneapolis duplex market Christmas tree. Pending sales were down 11.8 percent from their 2008 mark.
The good news is Santa left more expensive packages. Thebig and shiney average off market price of $112,980 made last year’s mark of $85,499 look like a lump of coal. Last year 91 percent of those solds involved a bank in the negotiations. This year, 90 percent did.
This price jump may be the result of ever-tightening inventory with the number of new listings week over week dropping by 34 percent. Of these, 26 percent of the weeks duplexes were offered by traditional sellers. This is a slightly more festive number than last year’s 15 percent.
In the single family market, the number of pended sales for the week was down 2.5 percent year over year. New listings were down as well. The laws of supply and demand should eventually result in a higher average sales price.
While the news isn’t exactly the pony we asked Santa for, at least he didn’t skip the Minneapolis housing market entirely.
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Minneapolis Duplex Market Open For Interpretation
December 15th, 2009 categories: Twin Cities Real Est
Look at the image to the left and tell me what you see.
I don’t know what it is, let alone what it means; kind of like the real estate market statistics for the Twin Cities for the week ending December 5, 2009.
In the single family sector, pending sales were up from the week before, but still trailed the mark from the same week one year earlier by 7.7 percent.
The months supply of single family inventory dropped to 5.7; the lowest it’s been in two years and down 32.9 percent from last year. Look a little closer, however, and numbers indicate there’s a 7.6 month supply of homes offered by traditional sellers, a 1.4 month supply of foreclosures and a big, black splat of short sale inventory at 12.8 months.
Houses priced below $190,000 have sold 49.9 percent faster over the last twelve months than they did the year before. For properties listed above that $190,000 mark, however, sales are down 10.5 percent.
Over in the duplex sector, the average off market price for pending sales was $132,355. This is a leap of $22,125 over the average sold price for properties one year before.
Of the small multi-family properties that received purchase agreements, just 13 percent were negotiated by traditional sellers. While this is a significant drop from previous weeks, it is nonetheless a 10 percent gain year over year.
The amount of new inventory to hit the market was down 33 percent from last year. Of these new offerings, traditional sellers were obvious, representing 49 percent of the market. Last year, they were responsible for just 17 percent of the new inventory.
All in all, there doesn’t seem to be an obvious picture in any of it.
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Minneapolis Duplex Buyers Busy At The Mall
December 8th, 2009 categories: Twin Cities Real Est
It’s easy to blame a long holiday weekend for many things: weight gain, too much shopping, and, even, perhaps, a case of sagging Minneapolis duplex sales.
Pending sales for the week ending November 28 dropped 27.5 percent from their mark for the week one year ago.
This slowing in transactions also resulted in a slightly lower average off market price of $117,776, compared with last year’s sold price of $120,363. The good news is traditional sellers accounted for 20 percent of the properties that left the active roster this year, compared with just 13.79 percent one year ago.
Another encouraging sign is the trickle of new inventory coming on the market.
New listings for the week dropped 52 percent, meaning there are increasingly fewer properties for buyers to choose from. Of this new inventory, 38 percent was offered by traditional sellers. This represents a radical shift from last year, when 91 percent of the properties new to the market were lender owned or mediated.
The holiday season distracts nearly everyone, so it’s unlikely we’ll be able to glean any sort of real market knowledge until the new year.
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Minneapolis Duplex Market Plays Red Light Green Light
December 1st, 2009 categories: Twin Cities Real Est
Just when we thought the light might be turning green in the Twin Cities duplex market, statistics for the week ending November 21, 2009 continued to send mixed signals.
The average off-market price for the week was $123,244, compared to last year’s average sales figure for the same week in November, which was $103, 659. This represents an increase of nearly $20,000.
Pending sales for the week were up 21.9 percent from last year as well. So too was the percentage of those transactions that represented traditional sellers; 21.9 percent this year, compared with just a 12 percent market share for the week in 2008.
It all sounds like a reason to put your foot down on the accelerator, right?
Hold off a second. The number of new listings week over week was actually up 28.9 percent. Normally, this would be cause for alarm. However, as we have recently seemed to experience a shortage of inventory, this may help inspire buyers lurking in the market to act.
Traditional sellers also continued to show signs of gaining traction among new listings. Thirty-one percent of the week’s new inventory was also offered by traditional sellers, compared with 12.5 percent for the week in 2008.
Single family home transactions also sent mixed signals. The number of transactions was up 5.2 percent from the same week in 2008. However, sales have slowed considerably since the rush to beat the tax credit ended.
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Traditional Minneapolis Duplex Sellers Give Thanks
November 24th, 2009 categories: Twin Cities Real Est
Traditional Minneapolis and St Paul duplex sellers have much to be grateful for this Thanksgiving, as market numbers for the week ending November 14, 2009, continue to suggest a shift in the market in their favor.
While it may seem ludicrous to herald a 27 percent share of properties that pended for the week as a triumph, bear in mind that one year ago during the same week, traditional sellers managed to corner just 16 percent of the market.
This is the fourth consecutive week where bank-negotiated transactions were down year over year.
This apparent trend seemed to benefit prices as well. The average off market price held relatively steady for the week, being $4400 higher than the sold prices of last year’s properties.
Better yet, new inventory dropped a whopping 38 percent from one year a ago. Traditional sellers comprised 42 percent of the market, compared with last year’s 81 percent lender mediated offerings.
Eventually, this trend will improve prices for sellers, as fewer of the bargain basement bank owned duplexes flood the market.
Meanwhile, single family home sales appeared to suffer the effects of the expiration of the first time home buyer tax credit. There were 7.1 percent fewer purchase agreements signed for the week than there were during the same stretch last year. Leading up to the credit’s expiration, these figures were often up more than 40 percent.
Like the small multi-family market, however, new listings continued to drop. Overall, there is 20 percent less inventory on the market than at this time last year.
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Minneapolis Duplex Buyers Face Empty Shelves
November 17th, 2009 categories: Twin Cities Real Est
Shopping for a duplex or entry-level single family home in the Twin Cities right now is a bit like shopping at the mall ten days after Christmas.
There’s not much left on the shelves and what is there, is, well, like an ugly sweater.
In October, first time home buyers rushed to find and buy homes in time to close by the November 30 first time home buyer tax credit deadline. Essentially, they had to have a purchase agreement no later than Halloween.
As a result, for the week ending November 7, the Twin Cities market posted “only” a 17.2 percent sales increase from last year. For the week ending October 31, that figure had been a 42.9 percent spike.
New listings in the single family sector were also down 14.3 percent for the period. In all, the Twin Cities region has 12,000 fewer listings than there were at the supply peak in September, 2007.
In the duplex and small multi-family sector, pending sales were exactly twice what they were for the same stretch last year. Of these, 31.25 percent were offered by traditional sellers, compared with a 20.83 percent traditional seller market share last year.
While a greater percentage of traditional sellers has, over the past few weeks, translated to a higher average off market price year-over-year, that wasn’t the case this time. Average off market prices were down just over $15,000.
Here’s the good news if you’re a seller. There’s a whole lot less inventory on the shelves for buyers to choose from. The first week in November last year saw 73 new duplex listings come on the market. This year, there were just 45 new properties for buyers to choose from.
If this trend continues, demand will exceed supply, forcing prices to rise.
In all likelihood, however, there will probably still be a couple of ugly duplexes left on the shelves.
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Twin Cities Duplex Market Develops Facial Hair
November 10th, 2009 categories: Twin Cities Real Est
The Minneapolis duplex market is like a 12-year-old boy. On the surface, it looks the same as it has for the past few months or years. And yet, every now and then, there’s a hint of a new, deeper voice.
MAAR’s weekly activity report came out today. And while single family home sales are still up 42.9 percent over the same stretch last year, with most properties receiving offers that are, on average, 94.6 percent of the list price, the truly interesting news is in the duplex market.
One year ago, just 10.53 percent of the Minneapolis and St Paul duplexes that received purchase agreements were owned by traditional sellers.
This year, banks were not present in 33 percent of the pending transactions.
Last year, the average off market price for the week of a Twin Cities duplex was $120,860. This year, that number was $137,883.
While there were eight percent fewer listings year over year, the better news is that 44.44 percent of that new inventory this year is offered by traditional sellers. This represents a growth spurt of 20 percent year over year, which will ultimately be good news for the market.
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