Twin Cities Multi Family Sales Up As Tax Credits End

So did the tax credits help?

Apparently so. For the week ending April 30, there was a 31.2 percent jump in pending sales over the same week last year.

Duplex sales were up by 20 percent, which may also have been influenced by the April 30 expiration of both the first time and repeat buyer tax credits.

While the average sale price for small multi family properties for the week last year was $97,330, the average pended price for the same time this year was a robust $155,043.

Of those properties that received offers during the week, 40.48 percent were offered by traditional sellers. Last year, just 11.43 percent did not involve a bank in the negotiation process.

Traditional sellers continued to increase their share of available inventory as well, bringing 49.2 percent of the new listings to the market. The number of newly listed duplexes remained relatively constant, however, with the week’s total being a single duplex more than the same stretch in 2009.

Single family homes actually notched the first week-over-week decrease in new listings, down 11.5 percent than a year ago.

This slowing in new inventory should help sustain the recent trend of fewer Days On Market before a sale, which now stands at 127 for single family homes; down 15.3 percent compared to last year.  Prices also benefited from reduced inventory, with the percent of original list price received up 4 percent over last year to 93.6 percent.

It will be interesting to see whether there’s a noticeable drop in next week’s statistics.