Minneapolis Duplex Sales: Trick? Or Treat?

Like late night trick or treaters, first time home buyers appear to be filling their pillow cases full of Halloween houses before the expiration of the $8000 tax credit.

Proof?

For the week ending October 17, there were 54.4 percent more purchase agreements signed than for the same week one year ago. Almost two-thirds of these properties were priced below $190,000; clearly in first time home buyer territory.

This is wonderful news. However, neighborhoods are running out of candy. There are 21.2 percent fewer homes on the market than there were at this time in 2008, and fewer at this point of the year than there have been at any time since 2004.

Of course, the duplex market has been running out of candy for quite some time.  While year-over-year pended duplex sales were up 27 percent, the amount of new inventory that came onto the market was down 19 percent.

Traditional sellers continued to hand out an increasing amount of goodies; accounting for 38 percent of this year’s new inventory. This is an increase of 17 percent from their 2008 mark.

While lender mediated sales continued to dominated the pended category, they accounted for just one percent more of the market activity this year than last.

Here’s the best news of all. Last year’s average sold price for the week was $106,740. And this year’s average pended price? $127,030.

Let’s hope the anticipated news out of Washington this week about a possible extension of the tax credit, brings word of another treat.