Archive for October, 2013

Minneapolis Duplex Market Inches Ahead

said on October 22nd, 2013 categorized under: Twin Cities Real Est

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duplex sales inch aheadThings were better than the same time last year in the Minneapolis and St Paul duplex market; if only by inches.

For example, there were 26 duplex sellers who accepted offers, 84.6 percent of whom have equity in their properties. On average, their final list price was $226,106, a number which will likely be slightly smaller at closing.

Last year,  there were 25 duplex owners who received offers, and 76 percent of them walked away from closing with a check in their pocket. The average price these properties sold for was $206,440.

Sellers continue to catch on that it’s a good time to sell, and 25 of them decided to do just that during the week.  Of these, 76 percent were owners with equity. Last year, there were 26 new listings, 65.4 percent of them were not in distressed situations.

The single family home market also saw gains, but like the duplex, triplex and fourplex market, those gains were marginal.

While New Listings were up 21.7 percent, Pending Sales actually decreased by 2.7 percent. Ironically, overall inventory nonetheless was down 5.6 percent over last year.

Remember, while gains may not be by the mile or yard, inches forward are always better than reverse.

Minneapolis Duplex Sales Are Up

said on October 15th, 2013 categorized under: Twin Cities Real Est

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duplex sales are upIf you’re a Minneapolis or St Paul duplex seller, things are looking up. Way, way up.

For the week ending October 5, 2013, the 25 duplex sellers who accepted offers on their properties did so at an average final list price of $233,584.

This shattered the average sold price for duplex sellers the same week in 2012, who, on average. received $174,750 for the sale of their duplexes. Now, just 44 percent of these 25 sellers had equity in their properties compared with the 68 percent of this year’s sellers who could say the same.

Inventory continued its slow growth during the week, which is greatly needed. There were 34 new listings, the bulk of which (73.5 percent) were brought to the market by equity duplex sellers. Last year, just 51.7 percent of the 29 new duplex, triplex and fourplex listings did not involve bank negotiations.

The single family home market saw the number of new listings increase 17.9 percent , pending sales rose 2.4 percent, and total inventory was down 6.2 percent.

In September, the Twin Cities Median Sales Price was up 11.7 percent over last year to $195,000.

Let’s hope the good news continues.

Minneapolis Duplex Sales Warm For Fall

said on October 8th, 2013 categorized under: Twin Cities Real Est

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Sunny autumn foliageAs we drift into fall and temperatures start dropping, the Minneapolis and St Paul duplex market continues to generate heat.

For the week ending September 29, 2013,  there were 25 duplexes that went from active to pending listings on the Twin Cities’ MLS. Of these, 72 percent are being sold by sellers with equity. While the average final list price was $202,364, it’s important to note one was listed at $539,000, and five more had list prices greater than $300,000.

Last year, just 17 duplex sellers accepted offers during the week. Just 52.5 percent of these folks left closing with a check in their hand. On average, they sold for $227,931, with the high seller going for $435,000.

There were 34 new listings for the last week of September, 2013. While the majority (64.7 percent) belong to traditional sellers, this is not too far ahead of the 63.9 percent market share of last year’s 34 new sellers.

The single family home market continued along at a brisk pace for the week, with pending sales up 12.2 percent. While inventory grew 10.3 percent for the week, overall it remains 5.9 percent lower than last year.

As we creep toward winter, let’s hope all of the good news continues.

Government Shutdown Could Halt Minneapolis Duplex Loans

said on October 3rd, 2013 categorized under: Financing

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duplex loansSometimes, it seems like a federal government shutdown doesn’t impact our lives. After all, we’re still getting the mail, and most of us are still going to work every day.

However, if you’re in the process of buying or refinancing a duplex or single family home, the government shutdown may actually stop your plans.

When you apply for a duplex loan, the lender asks for a copy of the last two years of your tax returns. To make sure you’re telling the truth, they use something called a 4506T, which allows them to verify with the IRS that the tax returns you provided match the ones you gave the government.

Guess what?

Thanks to the government shutdown, the IRS is closed. And following all of the mortgage fraud committed during the real estate boom, the lenders aren’t likely to just take you at your word.

So, until the IRS opens back up, you may not be able to get a loan.

Call your Congressman. No matter what side of the debate you’re on, sooner or later, this will affect us all.

Minneapolis Duplex Sales Explode

said on October 2nd, 2013 categorized under: Twin Cities Real Est

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duplex sales explodeWow.

The final average, off-market list price for a Minneapolis or St Paul duplex the week ending September 21, 2013, was $212,871.

Compare this to the average sold price from the same week last year of $128,318.

Granted, listing prices are rarely the same as selling prices. Most of the time, the actual amount a duplex sells for is less than the seller was asking.

Nonetheless, considering sellers in the Twin Cities real estate market are currently averaging sold prices of 97 percent of what they were asking, so it’s unlikely the sold prices will change much.

Of the duplex sellers who accepted offers during the week, 73.7 percent have equity in their properties. Four of these properties had list prices above $300,000, which is something we haven’t seen too much of the past few years. For the week last year, there were no listings above $300,000, and just 41.2 percent of those who sold were traditional sellers.

Duplex owners who’ve been considering selling have clearly begun to test the waters, as there were 27 new listings for the week. A whopping 81.5 percent of these new listings belonged to traditional sellers. Last year, the week saw just 16 new duplex investment opportunities come on the market; 62.5 percent of which belonged to owners with equity.

Numbers from the single family home market for the week suggest there are changes in the wind. While new listings were up 13.3 percent over last year, pending sales were actually down 5.5 percent. Whether this is an isolated incident or a trend is yet to be seen.

In all, it’s good news for duplex sellers; who’ve been waiting  a long time to hear it.