Believe it or not, 50 below zero wind chills apparently deter duplex buyers from looking at property in Minneapolis and St Paul.
Well, at least that appears to be the case for the Twin Cities real estate market the week ending January 11, 2014.
There were just seven duplex sellers who accepted offers that week. While the 57.1 percent of those sellers who had equity in their properties were in the majority, it was by a smaller margin than we’ve seen in recent months. Nonetheless, it did result in an average final list price of $184,735.
During the warmer first full week of 2013, there were 13 duplex sellers who accepted offers. Just five of them were not in a distressed situation. When bank-owned or negotiated sales lead the way, there’s often a lower average sales price. This was true last year, as these 13 sellers received, on average, just $118,000 for their multi-family properties.
Bone chilling temperatures also sent duplex sellers running for cover, as there were just 18 new sellers during the week. This is down significantly from the 30 who listed their properties for sale during the same week in 2013.
Of those 18 sellers, 66.7 percent have equity in their properties. Just 60 percent of last year’s new sellers did not need to consult with a bank to negotiate a sale.
Single family home buyers and sellers apparently hibernated during the week as well. New listings were down 14.6 percent, pending sales down 19.5 percent, and in all, inventory was down 9.8 percent from last year.
For the month of December, the Twin Cities Median Sales Price increased 13.1 percent to $190,000. Overall inventory continued to be in tight supply, with just 2.7 Months Supply sitting on the MLS shelves.
As we approach post Super Bowl Monday, look for duplex buyers and sellers to simply pull on there Carhartt’s to kick off the spring housing market.