If you were to look at two pictures side by side; one of Minneapolis duplex sales for the week ending June 18, 2012, and the other for the same week one year ago, they would look almost identical.
For example, there were 17 duplex owners who accepted offers on their properties for the week this year, 18 last year.
On closer examination, however, you will start to see some differences.
Of these Minneapolis duplexes that sold, 47 percent of the owners had equity in their properties. Last year, just 27.8 percent did.
There were 30 new duplex listings for sale on the MLS for the week; similar to the 32 one year ago. Last year’s crop consisted of 40.6 percent equity sellers, this year, 53.3 percent of the duplex owners will walk away from closing with a check.
However, this year’s average off market list price is where the most obvious distinction appears.
The average price a duplex left the market at this year was $154,626.
Last year’s sold price for the week was just $99,055.
When those pended sales for the week finally close, odds are the average price will be about 5 percent lower than the last list price. That would bring the average down to $146,895; almost $50,000 above last year’s.
If you took a snapshot of the single family home market, you’ll see a similar image.
New listings for the week were down 3.7 percent, while pending sales increased 19.8 percent. Overall, market inventory is down 31 percent from one year ago.
Things are changing, but only if you look closely.