Should we plan a party?
Why? One word.
Before we celebrate in the streets, it’s important to note this year’s average was greatly influenced by pended sales in the Lake of the Isles neighborhood of Minneapolis and the Grand Avenue neighborhood of St Paul, which typically command higher prices than many other areas.
The week that ended April 27, 2013 the average list price a Minneapolis duplex, triplex or fourplex left the market at was just more than half of the average sales price for the same week last year: $236,802 to 2012’s $115,276.
In other words, it might be too soon to hire a band.
Of the 30 duplex owners who accepted offers during the week, 17, or 56.7 percent, have equity in their properties. Of the 18 duplexes that sold in 2012, 10 of the owners, or 55.6 percent took checks home from closing.
The sudden rise in average sales prices may also be a result of the year’s trend of fewer properties being offered for sale. Last year during the week, for example, there were 30 new listings with 66.7 percent owned by traditional sellers. This year, there were just 22 new listings, 14 of which will not require a bank to be consulted in order to be sold.
Meanwhile, single family home sales rose 17.3 percent for the week, with new listings up just 2.9 percent. In all, there were 28.8 percent fewer homes for sale the last week of April 2013 than there were during the same week in 2012.
The good news prices are up. If inventory increases and demand remains high, only then can we truly celebrate.