One of the most common phrases I hear when I visit with prospective Minneapolis duplex sellers is they “want to wait until the market comes back” to sell.
The trouble is, in our heads, most of us like to think that’s going to be in the next year or two.
There’s a flaw in our thinking.
According to the latest Case-Shiller housing report, Twin Cities real estate experienced a 5 percent loss in value between 2010 and 2011.
This brings our grand total, according to Case-Shiller, to a 31.35 percent loss in value since 2005. (It’s important to note there are some differences of opinion on this. A recent University Of St Thomas report suggests the decline in value is closer to 18.06 percent.)
In either case, we would need to see an immediate and dramatic turn-around in the housing market to start up the appreciation ladder again.
In fact, in 2012 alone, momentum would need to swing from a 5 percent loss to a 5 percent gain. After that, we would need to see anywhere from three to six years of steady, 5 percent annual appreciation just to get back to 2005 duplex values.
And that’s a big “if”.
For many of the Minneapolis duplex sellers I speak with, hanging on to their duplex means years of juggling young children, a full time job and landlord duties.
And that’s the optimist’s interpretation of the housing market.
With a rumoured 5-6 million more homes and duplexes in the foreclosure pipeline nationally, a more realistic forecast for full recovery of duplex values might be closer to a decade.
For some Minneapolis duplex owners, that might be too long.
If you would love to sell your duplex because your life has changed, call or email me. You have more options than you think.