Minneapolis Market Analysis: April 2008

During the month of April this year, there was a decrease in new listings in Minneapolis, Minnesota, according to the Minneapolis Area Association of Realtors' Market Update for 100 Twin Cities Communities. During April of 2008, there were 1,126 new listings. In April 2007, there were 1,210 new listings. That is a drop of 6.9%. Though it isn’t March’s 20% decrease, it still shows that sellers are holding off compared to last year. The slowdown in new listings has been helping to ease pressure on the Twin Cities area real estate market.

As with March, the University community experienced the greatest decline of new listings during April. There were only 22 new listings in University, down 38% from April of 2007’s 36. Conversely, the Powderhorn and North communities again bucked the downward trend and have experienced an increase in listings compared to last year, at +3.9% and +20.7% respectively.

Here is a list of April 2008 new listings in Minneapolis by community and the percentage of change that has occurred compared to April 2007. These changes are quite a bit smaller than last month’s. (To see a Barker & Hedges article about March 2008 Minneapolis Market Activity, please click here.)

Camden: 139 (-9.7%)
Downtown Minneapolis: 158 (-3.7%)
Longfellow: 58 (-4.9%)
Nokomis: 144 (-5.3%)
North: 134 (+20.7%)
Northeast: 76 (-24.8%)
Phillips: 32 (-3.0%)
Powderhorn: 80 (+3.9%)
Southwest: 158 (-3.1%)
University Area: 22 (-38.9%)
Uptown-Lakes: 123 (-21.7%)

Taking a step back to look at Minneapolis’ posted new listing for the 2008 year-to-date shows a slightly different picture. From January through April of 2008, there were 4,047 new listings, compared to 4,563 during the same time period of 2007. That is a decrease of about 11.8%. The most dramatic adjustments happened in the University and Uptown-Lakes areas, which has been experiencing a drop in new listings by 33.9% and 31.7% respectively. On the end of the spectrum, the Phillips community has had an increase in new listings of 19% compared to last year. Here is a list of new listings in Minneapolis by community for the 2008 year to date and the percentage of change that has occurred compared to 2007:

Camden: 555 (-5.3%)
Downtown Minneapolis: 546 (-16.9%)
Longfellow: 208 (-5.9%)
Nokomis: 472 (-15.3%)
North: 526 (+12.6%)
Northeast: 283 (-25.1%)
Phillips: 125 (+19.0%)
Powderhorn: 305 (+13.0%)
Southwest: 503 (-9.9%)
University Area: 74 (-33.9%)
Uptown-Lakes: 448 (-31.7%)

This is the second month in a row that the Phillips community experienced a drop in new listings, and yet the community is still ahead compared to last year during the same time period.

Some communities seem to be experiencing the usual spring increase in buyer activity! Though last month Minneapolis closed sales slowed as expected, during April, sales started to pick up. During the month of March, there were over 10% fewer closed sales than in 2007. In April, the pendulum swung entirely the other way, with an 11.6% increase in closed sales compared to April of 2008! For the 2008 year to date, the City of Minneapolis closed sales are at about where they were last year. 1,212 home sales were closed in Minneapolis so far this year compared to 1,226 during the same time period of 2007, with the ultimate difference being just -1.1%.

When it comes to home sales prices, the downward spiral continues. The average sales price of a home in Minneapolis was $235,970 in April 2008 compared to $248,552 in April 2007, a decrease of just 5.1%. The average sales price year-to-date in the City of Minneapolis has come up over 3% from last month’s $212,174. From January through April of 2007, the average sales price of a home was $250,887, which has fallen 12.3% to $219,929. The percentage of Minneapolis homes which sold at their original list price has slipped nearly another percentage point to 89.6% during the month of April, down from 95.2% in 2007.

Average prices of homes sold in Minneapolis by community:

Camden: $85,511 (-48.4%)
Downtown Minneapolis: $341,500 (+14.3%)
Longfellow: $233,509 (+4.3%)
Nokomis: $216,657 (-10.0%)
North: $63,249 (-46.7%)
Northeast: $179,772 (-12.8%)
Phillips: $187,167 (+5.1%)
Powderhorn: $153,340 (-15.3%)
Southwest: $380,396 (+8.1%)
University Area: $185,833 (+39.4%)
Uptown-Lakes: $488,734 (+39.7%)

The decrease in real estate values depends on what community the home is in. It is good to see that the average price of homes in a few more communities are on the increase, such as in the Downtown, Longfellow, Phillips, Southwest, University, and especially Uptown-Lakes communities. Part of this has to do with a drop in listings combined with higher demand for moderately priced housing and homes close to places of employment.

Finally, homes for sale in Minneapolis are staying on the market for much longer than they were in 2007. Last year in April, a Minneapolis home was on the market for an average of 133 days before selling. During April of 2008, a home was on the market for an average of 157 days when it finally sold. The statistics vary based on neighborhood and the types of housing on the market. Condos and town homes are being snapped up much more quickly than usual, while single family homes are staying on the market for much longer than usually. Here is the average number of days a home is on the market at the time of sale by individual Minneapolis community during the month of April 2008.

Camden: 203 (+96.1%)
Downtown Minneapolis: 220 (+21.4%)
Longfellow: 129 (+76.6%)
Nokomis: 90 (-29.9%)
North: 154 (-6.4%)
Northeast: 220 (+65.8%)
Phillips: 179 (+8.3%)
Powderhorn: 138 (-0.4%)
Southwest: 127 (+6.4%)
University Area: 156 (-62.7%)
Uptown-Lakes: 192 (+28.4%)

This is a brief analysis of the Minneapolis real estate market based on calculations by the Minneapolis Realtors Association. These statistics do not reflect each individual situation of course. The decrease in new listings seems to be having an effect on the market. Only with a less flooded market is the stabilization of property values possible.

Browse homes for sale by Minneapolis community:

Calhoun Isle
Camden Real Estate
Central Real Estate
Longfellow Real Estate
Phillips Real Estate
Powderhorn Real Estate
Near North Real Estate
Nokomis Real Estate
Northeast Real Estate
Southwest Real Estate
University Real Estate

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