If you have any doubt whether the bank moratorium on duplex foreclosures or the first time home buyer tax credits had an impact on the amount of new inventory coming on the Minneapolis market, let me make you a believer.
During the last week of March in 2010, prior to the tax credit deadline and robo signing controversy, 65 new duplex, triplex and small apartment building listings came on the market.
This year, there were just 29 new properties to choose from.
Buyer behavior, however, didn’t change; in spite this year’s lack of a tax incentive. For the last week in March this year, 29 properties pended on the MLS. Of these, nearly one quarter were neither foreclosures nor short sales.
Last year, 30 properties pended for the week. The difference, however, was that 46.7 percent were offered by traditional sellers who were perhaps more willing to sell because they recognized the upward pressure the expiring tax credit would put on Minneapolis and St Paul duplex prices.
They were apparently right. Last year’s average sold price for the week was $133,907. The pending price this year, which these days always seems to drop once the actual sales are completed, was just $118,141.
Single family home shoppers are facing similar inventory shortages, with, in all, 14.4 percent fewer listings to choose from throughout the Twin Cities. New listings were also down 19.2 percent for the week.
That market, however, seems to have been more impacted by the tax credit than the small multi family market, as pending sales were down 25.1 percent.
The good news? If you’re thinking of selling your Minneapolis duplex, you’re simply not going to have a whole lot of competition right now.