Minneapolis Real Estate Market Analysis: June 2008

During the month of June 2008 in Minneapolis, there was once again a decrease in new listings, according to the Minneapolis Area Association of Realtors’ Market Update for 100 Twin Cities Communities. During June of this year, there were 1,049 new listings. In June 2007, there were 1,184 new listings. That is a drop of 11.1%. It’s much better than May’s nearly 20% decrease in new real estate listings. The University community experienced the greatest decrease in new listings during June. There were just 12 new listings in University, down a whopping 58.6% from June of 2007’s 29. Conversely the Phillips community, which experienced a great decrease in new listings during May, has seen its new real estate listings jump 173.7% during June 2008 compared to last year. There were 52 new listings here compared to last year’s 19 during the month. Here is an inventory of June 2008 new listings in Minneapolis by community and the percentage of change that has occurred compared to June 2007. These changes are very different compared to the real estate activity of May. (To see a Barker & Hedges article about May 2008 Minneapolis Market Activity, please click here.)

Camden 144 (-2.7%)
Downtown Minneapolis 123 (-40.6%)
Longfellow 61 (+5.2%)
Nokomis 119 (-21.2%)
North 128 (+21.9%)
Northeast 91 (+5.8%)
Phillips 52 (+173.7%)
Powderhorn 80 (+14.3%)
Southwest 118 (-33.0%)
University Area 12 (-58.6%)
Uptown-Lakes 121 (-8.3%)

Though some of those changes seem quite drastic, looking at Minneapolis’ posted new listing for the 2008 year-to-date softens that outlook a bit. From January through June of 2008, there were 6,194 new listings, compared to 7,100 during the same time period of 2007. That is a decrease of 12.8%. The most dramatic adjustments happened in the Uptown-Lakes and Downtown areas, which have experienced a drop in new listings of -26.5% and -24.1% respectively over the course of the year compared to last year. On the other end of the spectrum, the Phillips and North communities had increases in new listings of 24.5% and 11.9% respectively. 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 838 (-6.3%)
Downtown Minneapolis 789 (-24.1%)
Longfellow 333 (-9.3%)
Nokomis 716 (-20.4%)
North 772 (+11.9%)
Northeast 463 (-18.1%)
Phillips 193 (+24.5%)
Powderhorn 478 (+10.9%)
Southwest 768 (-16.9%)
University Area 142 (-22.0%)
Uptown-Lakes 700 (-26.5%)

Time for some good news! Minneapolis closed sales have picked up! Throughout the month, there were 516 properties sold, which means there were 5.5% more closed sales than in June of 2007. For the 2008 year to date, the City of Minneapolis closed sales are much closer to last years than they were just a month ago, at just about -3.3% lower than last year. 2,173 home sales were closed in Minneapolis so far in 2008 compared to 2,248 during the same time period of 2007.

Back to some less good news. When it comes to home sales prices, the downward spiral has unfortunately continued. The average sales price of a home in Minneapolis was $222,804 in June 2008 compared to $280,358 in June 2007, a decrease of 20.5%! The average sales price year-to-date in the City of Minneapolis isn’t much better off, as from January through June of 2008 the average sales price of a home was $214,406, a decrease of 16.8% from last year’s $260,037 for the same time period. The percentage of Minneapolis homes which sold at their original list price was 92.4% during the month of June, down from 95.2% in 2007. There is a community which is bucking the trend, however. Downtown Minneapolis has experienced an increase in real estate values due to high demand for properties here. The average price of a home sold in Downtown Minneapolis during June was $364,908, up 10.6% from last June’s $329,895. The year-to-date sale price of real estate Downtown has risen 2.1% to $325,687. 96.1% of homes sold in Downtown Minneapolis are closing at their original listing price.

Average prices of homes sold in Minneapolis by community:

Camden $83,635 (-34.9%)
Downtown Minneapolis $364,908 (+10.6%)
Longfellow $194,776 (-13.3%)
Nokomis $224,151 (-4.4%)
North $69,889 (-40.8%)
Northeast $170,024 (-17.4%)
Phillips $128,607 (-30.4%)
Powderhorn $144,252 (-15.9%)
Southwest $338,720 (-19.8%)
University Area $231,848 (-6.4%)
Uptown-Lakes $315,668 (-30.8%)

Finally, homes for sale in Minneapolis are staying on the market for much longer than they were in 2007. Last year in June, a Minneapolis home was on the market for an average of 116 days before selling. During June of 2008, a home was on the market for an average of 143 days when it 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 usual. 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 June 2008.

Camden 186 (+2.6%)
Downtown Minneapolis 241 (+ 49.2%)
Longfellow 80 (+103.9%)
Nokomis 117 (+61.3%)
North 173 (+17.5%)
Northeast 139 (+11.2%)
Phillips 159 (-18.2%)
Powderhorn 105 (-13.6%)
Southwest 106 (+4.0%)
University Area 52 (-32.1%)
Uptown-Lakes 128 (-17.4%)

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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