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.