Archive for the 'Twin Cities Real Est' Category

Minneapolis Duplex Sellers Get Burst of Energy

said on July 15th, 2014 categorized under: Twin Cities Real Est

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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.

Twin Cities Duplex Sellers Win By A Nose

said on May 20th, 2014 categorized under: Twin Cities Real Est

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race horsesIf the Minneapolis and St. Paul duplex markets were a horse race,  the first weeks of May in 2013 and 2014 would be neck and neck headed for the wire.

For the week that ended May 10, 18 Twin Cities duplex, triplex and fourplex sellers accepted offers on their properties. While this is one less than a year ago, the average final list price was $265,167. This is up dramatically from last year’s average sold price of $179,619.

This pricing disparity can’t be attributed to the presence of distressed properties, as just this year just 4 properties involved a bank in the negotiations, compared to 5 last year.

If duplex buyers had bet on increased inventory, it looks like it was a long shot. There were 38 new listings for the first full week of May, down one from last year. What’s different, however, is of those 38, 89.5 percent have equity in their properties. Last year, just 35.9 percent of the sellers could say the same.

Meanwhile, the number of New Listings in the single family home market surged ahead of last year by 6.5 percent. Pending sales faced a tougher race, up just .1 percent over last year. The good news for home buyers is overall Inventory increased 3.5 percent. This may provide a few more choices for frustrated shoppers.

Let’s hope the return of spring makes everyone a winner.

Minneapolis Duplex Prices Changing History

said on May 14th, 2014 categorized under: Twin Cities Real Est

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History Book And Character Shows Books About The PastHistory dictates that when traditional duplex sellers dominate the marketplace, prices go up. And when foreclosures and short sales are plentiful, prices decline.

At least, that’s how it’s been in the past.

The spring Minneapolis and St. Paul duplex market, however, is rewriting history.

For the week ending May 3, 2014,  there were 24 Twin Cities duplex, triplex, and fourplex owners who accepted offers on their properties. The vast majority, at 87.5 percent, have equity in their properties and will leave closing with a check in their pocket. And yet, the average final list price on these properties was just $159,569.

During the same week last year, there were 27 small multifamily property owners who accepted offers. Just 51.9 percent did not involve negotiating with a bank in order to sell. However, this was not reflected in the average sales price of $212,104.

Traditional sellers also contributed 87.9 percent of the 33 new listings for the week. Meanwhile, only 61.5 percent of 2013’s new listings for the week belonged to sellers with equity in their properties.

The single family home market saw the number of New Listings for the week increase slightly; up 1.4 percent over last year. Meanwhile, Pending Sales dropped 13.4 percent. The combination of the two helped total Inventory rise 2.6 percent.

For the month of April, the Median Sales Price rose 7.6 percent to $196,425. This may be the result of the persistence of a seller’s market, where home owners are receiving 95.8 percent of their asking price within 89 days of being on the market.

Twin Cities duplex sellers are certainly hoping to see that trend return to duplex prices.

Minneapolis Duplex Sellers Love Spring

said on May 8th, 2014 categorized under: Twin Cities Real Est

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minneapolis duplex sellersEquity Minneapolis and St Paul duplex owners are coming out of hibernation as the spring housing market brings warm rays of rising prices.

During the week ending April 26, there were 35 new listings that came on the market. This is a 25.7 percent increase in new inventory from last year. The vast majority of these, at 80 percent, are being offered for sale by traditional sellers.

One year ago during the same week, traditional sellers were still hibernating. Just 52.2 percent of the 23 new listings at that time came from sellers who had equity in their properties.

There were 26 duplex, triplex and fourplex sellers whose properties were already on the market during the same week.  While 80.8 percent of these folks had equity in their property, the average final list price these duplexes left the market at was $194,381.

Last year, there were 28 happy duplex owners who accepted offers. And while just 60.7 percent of these sellers had equity, on average, they sold their properties for $236,535.

The single family market also saw a rise in New Listings, up 25.6 percent over last year. Meanwhile, the number or property owners who accepted offers on their homes decreased 2.4 percent from the total during the last week of April 2013.

In all, there was a .5 percent increase in housing inventory. While microscopic increases in inventory are a good sign, they are not enough to relieve buyer frustration over a lack of available properties to choose from.

This will continue to put upward pressure on prices.

Which should make this spring the best part of every seller’s year.

Minneapolis Duplex Sellers Pretend It’s Spring

said on April 29th, 2014 categorized under: Twin Cities Real Est

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Time to Sell - ClockApparently, many Minneapolis and St Paul duplex owners have decided it’s time to sell.

There were 37 new duplex, triplex, and fourplex listings that came on the market during the week ending April 19, 2014. The vast majority, at 86.5 percent, belonged to traditional sellers.

The total number of new listings for the week far outpaces last year’s 26 during the same stretch. Of these, 76.9 percent were offered for sale by owners with equity in their properties.

What’s interesting about this surge in new listings is there wasn’t a comparable surge in the number of sellers who accepted purchase agreements during the week. Just 16 sellers accepted offers for the week; 75 percent of those folks will walk away from the closing with a check.

These sellers averaged an off market final list price of $249,932. While this is substantially higher than the average sold price of $212,008 last year, it’s important to note one property in the average was listed at $699,900. This boosted the average by about $10,000.

These 16 sellers represent a 38.5 percent decline in the number of pended small multifamily transactions over last year. There were 26 sellers who sold during that week, 69.2 percent of which took money home from closing.

Meanwhile,  the single family home market saw a 2.8 percent decline in the number of New Listings. However, Pending Sales were also down 5.3 percent.

Granted, this year weather may be playing a role in the apparent decline in transactions. When we see more traditional spring weather, we may get a better read.

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Spring flowers on a black backgroundLike the first spring day after a long winter, the Minneapolis duplex market inspired hope the week ending April 12, 2014.

For the first time in years, 100 percent of the sellers who accepted offers had equity in their properties. On average, these 15 properties went off the market at an average final list price of $250,860. This number is likely to be somewhat smaller when the prices the properties sold for are ultimately tallied.

Last year during the same week, 17 duplex, triplex and fourplex owners accepted offers. Just 41.2 percent of these sellers were not in a distressed situation.  More bank involvement in sales, of course, resulted in a lower average sold price, at $202,753.

Spring was in the air for new listings as well, with 30 new properties coming on the market.  A whopping 93 percent of these investment property owners are traditional sellers.

This number of new listings for the week was actually up 25 percent from the same week last year, when just 24 sellers put properties on the market. Just half of these sellers had equity in their properties.

The single family home market saw a jump in new listings, up 19.9 percent over last year. Pending sales also rose slightly, up 1.8 percent. Thanks to a year-long lack of inventory, however, the total number of homes available was actually down 2.4 percent from one year ago.

In March, the Median Sales Price for a Twin Cities home was up 7.6 percent to $190,000. Sellers continue to get 95 percent of their Original List Price, as there is still just a 3.1 month supply of inventory available.

In other words, spring looks to continue to be a Seller’s Market, which is good news if you’ve been considering making the move.

Minneapolis Duplex Market Changes Course

said on April 15th, 2014 categorized under: Twin Cities Real Est

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blipOK, I’m officially going to call it a blip.

For months now Twin Cities duplex sellers with equity in their properties have dominated every category of duplex sales.

For the week ending April 5, 2014, however, they slipped ever so slightly.

Last year, traditional duplex sellers had 59.1 of the sales that pended the first week in April. This year, they finished with 57.9 percent. Granted, it’s a small decline, but it is nonetheless a reversal of the trend of the last 12-18 months.

As always, a higher percentage of bank owned or mediated sales leads to lower sales prices. This held true in early April as well, when the average off-market list price was $163,658; down slightly from the week last year’s average sales price of $164,508.

Before we all worry that the sky is falling, it’s important to note there is absolutely no statistical evidence of an increase of foreclosure activity. It is more likely a simple anomaly we won’t see again.

Evidence of this may be found in the 82.14 percent of the new listings for the week that are being offered for sale by traditional sellers. They, coupled with newly listed distressed properties, brought 28 new duplexes to the market. This was down one from last year’s 29; 58.6 percent of which were listed by equity sellers.

The single family home market finally saw a slight increase in new listings; up 6.1 percent from the same week in 2013. However, it’s important to note that pending sales decreased as well, dropping 7.1 percent.

In March, the Median Sales Price for Twin Cities homes was $190,000. This was a 7.6 percent increase over last year.  On average, listings spend just 95 days on the market, and sell for 95 percent of what the price they were put on the market for.

In other words, in spite of our statistical blip, it remains a seller’s market

Minneapolis Duplex Owners Prefer Rent To Sale

said on April 8th, 2014 categorized under: Twin Cities Real Est

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Raking In The MoneyIn Minneapolis, it’s a duplex sellers market. The irony is, nobody seems to want to sell. They’re too busy raking in the cash from rent.

For example, consider the week ending March 29, 2014. There were just 17 new listings that week; 88.2 percent of which are being sold by people with equity in their properties.

During the same week in 2013,  there were a whopping 32 new listings. Traditional sellers contributed 59.3 percent of those new listings to last spring’s market.

Pending sales for the week took a slight dip from last year, with 17 sellers accepting offers; down two from last year. Of this year’s pending sales, 82.3 percent belong to traditional sellers. On average, these properties were listed at a price of $202,623. This is up from last year’s sold price of $178,615.

The single family home market saw New Listings jump 18.4 percent over the last week in March of 2013. Meanwhile, Pending Sales declined 5.6 percent. However, thanks to a year of listing scarcity, overall inventory remained 5.5 percent below last year.

Twin Cities duplex sellers tell me they’re happy with low vacancy rates and high rent. However, high rent also inevitably leads tenants to discover sometimes buying a house is more affordable than renting.

Minneapolis Duplex Buyers See Signs Of Spring

said on April 1st, 2014 categorized under: Twin Cities Real Est

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First sprout aspire to the sunIt’s finally starting to feel like spring in Minneapolis and St Paul. During the week ending March 22, 2014, however, this spring’s duplex market felt a lot like last year’s.

Nineteen Minneapolis and St Paul duplex sellers accepted offers on their properties. At 78.9 percent, the vast majority of these investment property owners have equity in their property and will leave closing with a check in hand. On average, the off-market MLS list price for these properties was $193,458.

One year ago during the third week of March, 17 investment property owners agreed to sell. At 64.7 percent, more than half sold and put money in their pockets. On average, they achieved a sales price of $187,500.

Unfortunately for buyers looking for a broader selection, there were just 26 new listings during the week. Most of these, at 76.9 percent, are sellers not facing a distressed sale. However, new inventory was down 23.5 percent from the week last year, when half of the properties were either the result of  a short sale or foreclosure.

Single family home inventory saw a slight uptick of 2.6 percent during the week.  This is positive news, as overall inventory was 6.8 percent lower than one year ago. However, pending sales were also down 6.9 percent, which may help to temporarily offset some of the imbalance.

As the spring thaw continues, we should start to see a truer measure of the Minneapolis and St Paul duplex market.

– See more at: http://duplexchick.com/2014/04/01/minneapolis-duplex-sellers-see-signs-of-spring/#sthash.dMYYJGvB.dpuf

Twin Cities Duplex Market Gets Skinny

said on March 11th, 2014 categorized under: Twin Cities Real Est

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The Minneapolis and St Paul duplex market went on a diet the week ending March 8, 2014.

The market was fat one year ago, when 22 duplex owners accepted offers on their properties during the week. Slightly less than half, at 45.5 percent, were not in a distressed situation. On average, they received a sales price of $154,070.

Compare that to the market during the same week this year, when just 12 duplex sellers came to terms on the sale of their duplexes. Of these, 41.7 percent have equity in their properties.  Perhaps it was because there was so little for buyers to sample, but on average, these properties final listing price was $219,233.

New listings for the first full week of March finally showed weighed in, with 25 new listings coming to the market. The vast majority of these duplex sellers, at 80 percent, have equity in their properties.

Last year, there were 19 new listings during the same week. Just 42.1 percent of those sellers did not have to consult with anyone at a bank to receive permission to sell.

As we continue to thaw out from a brutal winter, let’s hope the number of new duplex listings is less than anorexic.