Before we dash into 2012, we need to take a look or two over our shoulders at exactly what happened in Minneapolis duplex sales at the end of 2011.
For the weeks ending December 17 and 24, for example, it’s interesting to note pending duplex sales were up over the same weeks in 2010.
The week ending the 17th saw 22 Minneapolis duplex, triplex and four unit apartment building owners receive and accept purchase agreements. Of these, 18 percent did not have to consult with anyone at a bank in order to come to terms with the buyer.
For that week in 2010, just 13 duplex owners accepted offers. Slightly more of these sellers (23 percent) were people with equity in their duplexes.
For the week ending December 24, 14 Minneapolis and St Paul duplex sellers accepted offers on their investment property. While this total is just one higher than the same week the year before, the good news is 36 percent of these sellers have equity in their property. For the same week in 2010, just 15 percent of the pending transactions were not distressed duplexes.
The amount of new inventory on the market continued to decline, with just 26 new listings appearing on the MLS the week ending the 17th. Of these, 31 percent were offered by equity sellers. In the same week in 2010, there were 41 new duplexes for sale in the marketplace, with just 10 percent being neither foreclosures or short sales.
During the week ending December 24th, there were 19 newly listed Minneapolis duplexes for sale on the MLS. Of these, twenty percent were offered by traditional sellers.
For the same week in 2010, there were 22 new duplexes for sale. Nine percent of those listings were not foreclosures or short sales.
As we start the New Year, it’s important to note there is a continued shortage of duplex inventory. This does not mean, however, that we are seeing any sort of price increase. In fact, for the week ending December 24, the average off-market price was $140,270.
For the same week in 2010, the average sold price was $140,330.
As most MLS-listed properties are currently selling at approximately 92 percent of list price, odds are we are continuing to see a downward trend in value.
With a lender-promised spring acceleration of backlogged foreclosures on delinquent duplex owners, 2012 promises to be yet another interesting year.