Minneapolis Market Analysis: May 2008

During the month of May this year 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 May of 2008, there were 1,098 new listings. In May 2007, there were 1,353 new listings. That is a drop of nearly 20%! It’s also much higher than April’s drop of just 6.9%, but it matches March’s 20% decrease. Basically, many sellers seem to be holding off compared to last year. The slowdown in new listings has really helped to ease pressure on the Twin Cities area real estate market.

Unlike March and April, the University community experienced the greatest increase in new listings during May. There were 56 new listings in University, up 36.6% from May of 2007’s 41. Conversely, the Philips and Nokomis communities had decreases in new listings compared to last year, at -48.4% and -34.9% respectively.

Here is a list of May 2008 new listings in Minneapolis by community and the percentage of change that has occurred compared to May 2007. These changes are very different compared to the real estate activity of April. (To see a Barker & Hedges article about April 2008 Minneapolis Market Activity, please click here.)

Camden 139 (-13.1%)
Downtown Minneapolis 120 (-31.8%)
Longfellow 64 (-27.3%)
Nokomis 125 (-34.9%)
North 118 (0.0%)
Northeast 89 (-11.9%)
Phillips 16 (-48.4%)
Powderhorn 93 (+2.2%)
Southwest 147 (-22.6%)
University Area 56 (+36.6%)
Uptown-Lakes 131 (-20.1%)

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 May of 2008, there were 5,145 new listings, compared to 5,916 during the same time period of 2007. That is a decrease of about 13.0%. The most dramatic adjustments happened in the Northeast and Uptown-Lakes areas, which experienced a drop in new listings by 22.3% and 29.4% respectively. On the end of the spectrum, the North and Powderhorn communities had increases in new listings of 10.1% and 10.2% respectively 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 694 (-7.0%)
Downtown Minneapolis 666 (-20.0%)
Longfellow 272 (-12.0%)
Nokomis 192 597 (-20.3%)
North 644 (+10.1%)
Northeast 372 (-22.3%)
Phillips 141 (+3.7%)
Powderhorn 398 (+10.2%)
Southwest 650 (-13.1%)
University Area 130 (-15.0%)
Uptown-Lakes 579 (-29.4%)

During May, Minneapolis closed sales slowed as predicted. Throughout the month, there were 445 sales, which means there were16.5% fewer closed sales than in May 2007. For the 2008 year to date, the City of Minneapolis closed sales are at about 5.8% lower than they were at this time last year. 1,657 home sales were closed in Minneapolis so far in 2008 compared to 1,759 during the same time period of 2007.

When it comes to home sales prices, the downward spiral continues. The average sales price of a home in Minneapolis was $199,392 in May 2008 compared to $262,440 in May 2007, a decrease of a whopping 24%! The average sales price year-to-date in the City of Minneapolis has had slightly less of a decrease. From January through May of 2007, the average sales price of a home was $254,388, which has fallen 15.7% to $214,414. The percentage of Minneapolis homes which sold at their original list price has slipped nearly another percentage point to 91.2% during the month of May, down from 95.3% in 2007.

Average prices of homes sold in Minneapolis by community:

Camden $83,915 (-45.6%)
Downtown Minneapolis $345,526 (+7.7%)
Longfellow $191,400 (-9.0%)
Nokomis $224,143 (-10.4%)
North $57,256 (-52.0%)
Northeast $167,464 (-17.7%)
Phillips $120,900 (-33.0%)
Powderhorn $143,139 (-15.8%)
Southwest $294,865 (-9.8%)
University Area $195,282 (-39.4%)
Uptown-Lakes $332,981 (-22.5%)

Finally, homes for sale in Minneapolis are staying on the market for much longer than they were in 2007. Last year in May, a Minneapolis home was on the market for an average of 114 days before selling. During May of 2008, a home was on the market for an average of 149 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 May 2008.

Camden 177 (+25.8%)
Downtown Minneapolis 176 (-5.7%)
Longfellow 68 (-15.1%)
Nokomis 137 (+116.9%)
North 114 (-40.4%)
Northeast 156 (+38.6%)
Phillips 181 (+7.1%)
Powderhorn 129 (+21.0%)
Southwest 129 (+24.4%)
University Area 212 (+60.8%)
Uptown-Lakes 109 (-13.6%)

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 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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