Is There A Reversal of Fortune Coming in the Minneapolis Duplex Market?

There are some interesting trends starting to emerge in the housing market as evidenced by MAAR’s just released weekly activity report for the week ending November 1.

First, the average number of days a single family home sits on the market before selling was down .8 percent to 141. This is the first drop in average market time in the last two years.

The week also ended with 21 percent less new listings than for the same period in 2007, and 1.4 percent fewer pending sales. This is the first drop in pending sales since June.

Meanwhile in the multi-family market, the average price of duplexes that received purchase agreements rose for the third week in a row. For the week ending November 1, this figure was $116,320. While still not as robust as the 2007 average of $188,295 of the comparable week, it is, nonetheless, an increase over last week’s mark of 11.38 percent. A point of interest is the 2007 figure decreased for the third week in a row; declining 5 percent this time around.

The number of newly listed multi-family properties also continued their decline, falling a full 20 percent from those coming on the market in the same week last year. If inventory continues to tighten, prices are more likely to continue to rise.