Minneapolis Duplex Sales Offer Clues

Mrs. White, in the library, with a candlestick.

Signed purchase agreements up 53.8 percent from a year ago, sales of homes under $250,000 up 40 percent over the same stretch in 2008, and pending expiration of the $8000 first-time home buyer tax credit.

Congress?

Get a Clue. Extend the tax credit.

Need further proof that it’s a good idea?

Compared to one year ago, there are 5300 fewer homes available under $250,000 than there were. What’s more, the Supply-Demand Ratio, which is the number of properties on the market for every buyer, is down 29.3 percent from 2008; to 7.69 per buyer.

In the duplex, triplex and fourplex market, sales were relatively constant year-over-year, with 38 properties receiving purchase agreements to last year’s 39. The average off-market price, however, showed marked improvement, up $11,758.42.

Of the properties that pended, 18.42 percent were listed by traditional sellers. Last year, this mark stood at just 12.8 percent.

The biggest shift in the small multi-f market is evidenced in new inventory, which was down 9 percent from last year. The important fact here, however, was that 46.3 percent of those new listings were offered by traditional sellers; up significantly from last year’s 27.12 percent.

The Senate is promising to pass some sort of tax credit extension by week’s end before sending it on to the House.

Let’s hope they solve that mystery soon.