Minneapolis Real Estate Market Analysis: August 2008

All through August of 2008, the number of new listings in Minneapolis decreased significantly this month when compared to last year’s statistics, according to the Minneapolis Area Association of Realtors’ Market Update for 100 Twin Cities Communities.  During August, there were 876 new listings. In August 2007, there were 1,099 new listings, meaning that there was a drop of -20.3%. In August, the Phillips and Northeast communities experienced the greatest decrease in new listings during August, with about -40% fewer than last year.  Conversely, the Camden and North communities each saw increases of new listings that amount to about 7%.  Here is an inventory of August 2008 new listings in Minneapolis by community and the percentage of change that has occurred compared to August 2007 (To see a Barker & Hedges article about July 2008 Minneapolis Market Activity, please click here.)

Camden 155 (+6.9%)
Downtown Minneapolis 104 (-29.3%)
Longfellow 51 (-21.5%)
Nokomis 108 (-30.8%)
North 120 (+7.1%)
Northeast 63 (-40.6%)
Phillips 13 (-40.9%)
Powderhorn 60 (-6.3%)
Southwest 93 (-23.8%)
University Area 17 (-37.0%)
Uptown-Lakes 91 (-28.3%)

Minneapolis’ posted new listing for the 2008 year-to-date slipped a full percentage point from last month’s gains.  From January through August of 2008, there were 8,086 new listings, compared to 9,305 during the same time period of 2007. That is a decrease of -13.1%.  The greatest fluctuations in new listings for the year-to-date have happened in the Uptown-Lakes and Downtown areas, which have experienced a drop in new listings of -27.4% and -24.2% respectively compared to last year.  The Phillips community is still in the lead for having the most new listings this year compared to 2007 with a 15.9% increase.  Here is a depiction 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 1,141 (-3.6%)
Downtown Minneapolis 1,019 (-24.2%)
Longfellow 447 (-11.1%)
Nokomis 944 (-20.9%)
North 1,022 (+10.2%)
Northeast 597 (-20.7%)
Phillips 233 (+15.9%)
Powderhorn 621 (+11.3%)
Southwest 981 (-16.6%)
University Area 187 (-18.3%)
Uptown-Lakes 892 (-27.4%)

Within the City of Minneapolis, closed sales during August fell compared to last year.  During the month, there were 485 properties sold, which means there were -7.6% fewer closed sales than in August of 2007. But that’s 10 more than the 473 sales we had in Minneapolis during July.  For the 2008 year to date, the Minneapolis closed sales are -5.0% lower than last year. 3,131 home sales were closed in Minneapolis so far in 2008 compared to 3,297 during the same time period of 2007.  Once again, the Camden, North, and Powderhorn communities have seen incredible increases in sales while Phillips, Downtown, and the Uptown-Lakes communities have seen decreases.  Here are the closed home sales in August broken down by community:

Camden 44 (+22.2%)
Downtown Minneapolis 55 (-38.9%)
Longfellow 34 (-20.9%)
Nokomis 54 (-26.0%)
North 64 (+68.4%)
Northeast 50 (+2.0%)
Phillips 6 (-33.3%)
Powderhorn 64 (+137.0%)
Southwest 65 (-16.7%)
University Area 17 (-19.0%)
Uptown-Lakes 32 (-56.2%)

When it comes to home sales prices, it probably comes as no surprise that they have dropped again.  Though the average sales price of a home in June was $222,804 and in July was $233,770, in August the sales price of a home sold in Minneapolis had fallen to $200,642.  The price in August 2007 was $254,673.  The average sales price year-to-date in the City of Minneapolis fell -16.6% from last year to $216,587 in August.  The percentage of Minneapolis homes which sold at their original list price was 92.1% during the month of August, down from 94.1% in 2007. Once again, the sales prices of homes sold in Downtown Minneapolis and the Uptown Area have increased due to high demand for properties here.  Average prices of homes sold in Minneapolis by community during August 2008:

Camden $78,215 (-35.3%)
Downtown Minneapolis $290,316 (-4.6%)
Longfellow $184,983 (-15.8%)
Nokomis $228,910 (-4.8%)
North $62,856 (-25.5%)
Northeast $162,551 (-20.9%)
Phillips $164,400 (+13.1%)
Powderhorn $126,335 (-30.0%)
Southwest $301,338 (-16.0%)
University Area $197,900 (-12.0%)
Uptown-Lakes $415,842 (+18.1%)

Lastly, homes for sale in Minneapolis are staying on the market for nearly a month longer on average than they were in 2007. Last year in August, Minneapolis homes tended to be on the market for an average of 97 days before they were sold.  During August of 2008, a home was on the market for an average of 121 days when it finally sold. The statistics vary based on neighborhood and the types of housing on the market. Condos and town homes are selling much more quickly, while single family homes will stay on the market for much longer. 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 August 2008.

Camden 127 (-17.7%)
Downtown Minneapolis 112 (+75.9%)
Longfellow 95 (+44.6%)
Nokomis 107 (+16.2%)
North 123 (-33.1%)
Northeast 144 (+33.5%)
Phillips 201 (+52.8%)
Powderhorn 138 (+93.9%)
Southwest 109 (+15.5%)
University Area 92 (+52.3%)
Uptown-Lakes 135 (+39.2%)

This is a brief analysis of the Minneapolis real estate market based on calculations by the Minneapolis Area Association of Realtors. These statistics do not reflect each individual situation of course.

Browse homes for sale by Minneapolis community:
Calhoun Isle Real Estate
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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