Sometimes, the well runs dry. And after six years of consistently blogging about Minneapolis and St Paul duplexes, triplexes and fourplexes, in late May and June, mine did just that.
I apologize for that.
The good news is, the market has changed. And after some time away to recharge, I am once again loaded with topics to write about.
But let’s start with the basics.
In the week ending July 5, 2014, 28 Twin Cities duplex, triplex and fourplex owners received and accepted offers on their properties. Of these, 88.9 percent are traditional sellers with equity in their properties. On average, these investment properties left the market at a list price of $236,455.
During the same week last year, 15 property sellers received and accepted offers. On the surface anyway, these folks appeared to fare better than this year’s sellers with an average sales price of $296,360.
While I haven’t yet tracked enough weeks to conclude this is a sign of a market shift, it is important to note that new listings for the week were up 18 percent over last year. An increase in inventory may be responsible for price stabilization, as more properties on the market reduce the amount buyer competition. Again, only time will tell if this is the case.
The single family home market also appears to be undergoing something of a shift. New Listings for the week were up 14.8 percent over the week in 2013. Pending Sales were up as well; rising 17.4 percent. Overall Inventory also increased– by 7.7 percent, which may suggest the start of a return to a more balanced market.
Next week’s report is sure to tell us more.