Drum Roll Please…Prices Up In Minneapolis Duplex Market

lil drummer boyIn the 8 or so months that I’ve been compiling statistics for the Twin Cities duplex market, I have a first.

Drum roll…

The average off market price of small multi-family properties that accepted purchase agreements during the week ending February 7 was higher than the sales price of properties during the same period in 2008.

Pended properties for the first week of February, 2009 went off the market at an average price of $106,051. This is a jump of over $10,000 from the 2008 period, when the average sales price was $95,275. Of the those that received offers this year, 97.6 percent  involved a lender mediated sale. In the same week in 2008, just percent were foreclosures or short sales.

While the amount of new inventory dropped 13.3 percent, it is a supply that continues to be dominated by foreclosures. Of the 78 new listings for the week, 79.5 percent will involve a lender in any purchase negotiations. Just 61 percent of last year’s new inventory involved the bank.

The good news continues in the single family home market as well. While the number of new listings rose with the start of the spring housing market, they nonetheless lagged 16.2 percent over last year’s mark. Meanwhile, sales were up 17.5 percent. 

This decreased supply and increased demand has served to reduced the Months Supply of Inventory to 7.7 months; down 13.5 percent from last year. A housing market is considered to be balanced between buyers and sellers when the Months Supply of Inventory is 5.

With the first time home buyer tax credit on the horizon, it promises to be an interesting spring.