For the week ending August 6, 2011, the trends we’ve seen for most of the summer in Minneapolis duplex sales continued.
There were 20 duplex listings whose owners received and accepted purchase agreements for the week. While this is three less than the number that did one year ago, thirty percent of the pended duplexes belonged to equity sellers.
Last year, 26 percent of the pended sales did not involve banks giving their permission for the property to be sold.
The average Minneapolis duplex, triplex or four unit listing left the market at an average list price of $114,692. This is down substantially from the $153,205 average sold price for the pended listings for the same week last year. However, it’s important to note that last year’s tally included a single sale for $600,000.
The scarcity of new duplex listings continued as the week saw just 27 properties hit the market. This represents a 44.9 percent decline from the same week one year ago.
This continued new duplex inventory drought may well be the reason behind the string of multiple offer situations my clients have recently found themselves in.
Meanwhile, over in the single family home market, pended sales for the week increased 40 percent over their 2010 mark. On the surface this looks like reason to celebrate, it’s important to remember much of last year’s activity occurred earlier in the year so buyers could avail themselves of expiring tax credits.
There were also 18.7 percent fewer new listings than at this time last year, which has helped home prices increase nearly 18 percent between March and June of this year.