Archive for April, 2013

Minneapolis Duplex Sales Change The Rules

said on April 23rd, 2013 categorized under: Twin Cities Real Est

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duplex sales defy expectationsSometimes Minneapolis and St Paul duplex sales seem to have unwritten rules.

Take, for example, the week ending April 13, 2013.

There were 18 duplex, triplex and fourplex owners who received and accepted offers. For the first time in ages, the minority of these, 38.9 percent, were traditional sellers with equity in their properties. Last year there was a similar trend, when just 36.8 percent of the 19 properties that sold were offered by equity sellers.

With banks contributing the majority of the sold properties, you would think prices would drop. And yet, the average final off-market list price for duplexes this year was $195,733, compared with $134,608 one year ago.

Meanwhile, traditional sellers continued to bring the majority of the new listings to the market. For the week in 2013, 52.2 percent of the 23 new investment property opportunities were being offered by traditional sellers.  Of the 28 new listings last year, 57.1 percent did not need a bank’s permission to sell.

The single family home market continued to experience a squeeze in inventory, with new listings down 2 percent and pending sales up 6.1 percent for the week.  In all, inventory was down 28.7 percent.

With so few properties to choose from, it conttinues to be a great time to be a seller.

Minneapolis Duplex Sales Drive Like Danica

said on April 16th, 2013 categorized under: Twin Cities Real Est

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duplex sellers race past buyersIf last year’s Minneapolis duplex market and this year’s were race cars, 2013 would have just lapped 2012.

For the week ending April 6, there were 24 Minneapolis and St Paul duplex, triplex and fourplex owners who received and accepted offers on their properties. Of these, sixty-seven percent were traditional sellers who will pocket a check from the sale at closing, who last listed their properties for an average price of $171,726.

Last year, just 13 Twin Cities small multifamily property owners received and accepted offers. Less than half, at 46.2 percent, had equity in their investment properties. These sellers cashed out at an average sales price of $151,077.

As has been true all spring, there were fewer new listings, with just 27 new opportunities listed for sale.  Of these, 55.6 percent are being offered by traditional sellers. Last year, just 33 percent of the 30 new sellers did not have to receive a bank’s permission to sell.

Single family home sellers actually got a bit of a relief from tight market inventory when new listings increased 22.6 percent. Of course, pending sales kept close pace, up 17.1 percent.

For the month of March, the single family home market’s median sales price increased 18 percent to $176,840, while the average number of days on the market dropped to 109.

As long as inventory remains tight, sellers are in the driver’s seat.

Minneapolis Duplex Sellers Catch On

said on April 10th, 2013 categorized under: Twin Cities Real Est

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duplex for saleAfter countless elbow nudges and hints, is it possible Minneapolis and St Paul duplex owners have finally caught on and decided to sell?

For the week ending March 30, 2013, there’s a sliver of hope.

There were 32 new duplex, triplex, and fourplex listings that came on the market. More than half– 59 percent — were offered for sale by sellers with equity in their properties.

During the same week in 2012, there were five fewer new lisitngs. However, 62.3 percent of these were being sold by people who who did not need to receive permission from a bank in order to sell.

There were 19 Minneapolis duplex and small multifamily property owners who received and accepted offers during the last week of March in 2013. Of these, 52.6 percent were traditional sellers, resulting in a final average final list price of $176,789.

In 2012, there were 21 duplex sellers who accepted offers. Fifty-seven percent of these had equity in their property, resulting in an average sold price of $149,582.

There were 12.1 percent fewer new single family home lisitngs for the week ending March 30 than one year ago. Meanwhile, pending sales were up 12 percent. In all, inventory is down 29.6 percent from last year.

Let’s hope more sellers get a clue.

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vikingsI know how the city of Minneapolis could pay for the Vikings new stadium.

They could simply fine all of the duplex owners in the city who currently don’t have rental licenses. After all, there are a lot of them.

The fine for operating a rental without a license in the city of Minneapolis is $500. This is in addition to any costs the owner might incur in the process of obtaining one.

The fee for the initial inspection required on a duplex that either hasn’t had a valid rental license in the last 12 months, or on a property being converted to a rental property is $1000. However, this fee can be reduced by $250 if the owner can present proof of attendance at a fundamentals of rental property management class.

This class is conducted by the Minneapolis Police Department and costs $30 to attend.

After the initial inspection fee, duplex owners are required to keep their licenses current. The annual license fee is $69 for the first rental dwelling unit, and $19 for each unit after that.

All rental licenses in the city of Minneapolis must be renewed prior to August 31.

And if not?

More skyboxes for the Vikings.

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happy duplex sellerMinneapolis equity duplex sellers rule!

Or at least they did for the week ending March 23, 2013.

Of the 21 Minneapolis and St Paul duplex sellers who received and accepted purchase agreements, a staggering 90.5 percent were traditional sellers who did not need to consult with a bank in order to sell. As always, the more traditional sellers dominate the market, the higher the average price. This was certainly true here, as the average list price a duplex left the market at was $179,230.

Compare this to the same week in 2012, when just 35.3 percent of the 17 sellers walked away from closing with a check. More bank owned or negotiated sales resulted in a much lower average sales price of $116.947.

Traditional sellers didn’t fare quite as well in new listing contributions, however, bringing just 50 percent of the 30 new duplexes, triplexes and fourplexes to the market.

This number slightly trails the 51.6 percent market share of  the 31 properties that were new inventory for the same week in 2012.

The single family home market saw new listings increases in both new listings — at 2.8 percent for the week, and the number of pending sales, which rose 11.9 percent during the week. Overall inventory saw a decrease of 29.8 percent.

In February, the Median Sales Price for single family homes increased 15.5 percent to $160,000, while the average number of Days on Market dropped 22.2 percent to 112.

There is currently just a three month supply of inventory on the market; meaning if nobody decided to list their house or duplex, we would have absolutely nothing left to sell in just 90 days.

A balanced market is when there is a 5 to 6 month supply of property for sale.

Can you say “Sellers Market”?