These days, there are so few new Minneapolis duplex listings coming on the market that I’m convinced some one’s going to have to start giving out ration coupons.
Really. There’s a shortage!
For example, for the week ending September 17, 2011, there were 36 new duplex listings available for purchase.
During the same week last year, there were 49. So, from last year to this, we experienced a 27 percent decline in new inventory.
Last year, 51 percent of these listings were brought to the market by duplex owners with equity.
This year, 53 percent belonged to traditional, or equity sellers.
There were 23 duplexes, triplexes or small multi family building owners who accepted purchase agreements in the second week of September. Of these, just 26 percent will not need to consult with the bank before they sell their property.
During the same stretch last year, 19 Minneapolis and St Paul duplex owners accepted offers. Of these, 32 percent did not need permission from their lender before agreeing to sell.
On average, these sellers from one year ago received $107,100 for the sale of their property.
This year, the average property a duplex was listed at before it became a pending sale was $104,560. As sold prices, as of late, have averaged less than list prices, odds are we will see a more significant drop when sold prices are recorded.
While not nearly as dramatic as the Minneapolis duplex market, new single family home listings were down 22.5 percent for the week, marking the 15th straight week of new inventory decline.
Meanwhile, pending sales were up 40.6 percent.
Overall, there are 22.5 percent fewer single family homes available to purchase on the Twin Cities market than there were one year ago.
While I doubt they’re at the place where they’re going to ration home sales, duplex coupons might not be far away.