[youtube]http://www.youtube.com/watch?v=lJnzenx73wc&feature=related[/youtube]There is something coming in the Minneapolis and St Paul duplex market.
Like the song, in “West Side Story”, I don’t know what it is. But it’s a change, to be certain.
For the week ending September 3, 2011, there were 28 Twin Cities duplex and small multi-family owners who accepted offers on their properties.
Of these, 50 percent did not have to talk with anyone at a bank in order to sign the purchase agreement.
Last year during the same week, just 11 Minneapolis and St Paul duplex owners accepted purchase agreements. Only two of them, or 15.4 percent, were able to do so without consulting anyone at a lending institution.
In terms of pended sales, that’s a 254.6 percent year-over-year increase.
The average price a pended duplex was listed at before leaving the market this year was $158,679. It is interesting to note this average included four properties listed for less than $21,000.
The average sold price for the same week last year was $154,375. The lowest sold price included in this average was $55,000.
Duplex inventory continued to shrink, as the week brought just 25 new purchase opportunities to the market. Of these, 52 percent are being sold by sellers with equity.
This figure represents a drop in new inventory of 28.6 percent over the same week one year ago. Of those listings, 57.4 percent were brought to the market by traditional sellers.
It is interesting to note the single family home market appears to be experiencing some of the same phenomenon as the duplex market.
The week saw 14.3 percent fewer new listings than the same stretch in 2010.
Meanwhile, there were 976 purchase agreements signed by both buyers and sellers during the week; a number that represents a jump of 35.6 percent since last year.
All of this would be cause to get up and dance, were it not for continued rumours of foreclosures in the pipeline.