Buyers Nod Yes In Minneapolis Duplex Market

ForeclosureBack in the day, oh, say, in around 2005-2006, well-maintained properties that were properly priced were selling at a rapid pace, and with multiple offers.

It was almost like an auction, with bidders scrambling to out-strategize and out-maneuver one another.

And while we all know the market has changed since then, there have been some buyers making subtle nods of their heads in recent weeks.

With today’s release of MAR’s Weekly Activity Report came news that the monthly supply of inventory is now at just 5.5 months. While this number still slightly favors sellers, it’s important to remember that a balanced market, where buyers and sellers are on equal footing, occurs when there is a 5 month supply.

For the week ending February 6, MAR reported new listings of single family homes were up 3.8 percent from one year ago. So too were pending sales, with 4.7 percent more properties receiving purchase agreements than in 2009.

While duplex sales for the week were down 3 percent from last year, there was decidedly less inventory for buyers to choose from. The week showcased 23 percent fewer new listings than came on the market the first week of February last year. Of the 2010 new offerings, 10.8 percent were listed by traditional sellers, compared with just 5.3 percent last year.

The average off market price for the week was $121,536. This is up considerably from last year’s $98,528.

Tightening inventory brings increased competition for listings. And while it’s not scientific, I can share that three of my buyers have been involved in multiple offer situations in the last 10 days.

As long as inventory remains tight, expect that trend to continue.