Minneapolis Real Estate Market Analysis: October 2008

The number of new listings in Minneapolis once against declined during the month of October compared to last year, according to the Minneapolis Area Association of Realtors’ Market Update for 100 Twin Cities Communities.  There were 877 new listings, whereas in October 2007, there were 1,012 new listings.  That adds up to a drop of -13.3%. During October, the University and Downtown communities experienced the greatest decrease in new listings.  Conversely, the Camden, Phillips, and Powderhorn communities saw increases in new listings.  Here is an inventory of October 2008 new listings in Minneapolis by community and the percentage of change that has occurred compared to October 2007 (Previous Barker & Hedges article about September 2008 Minneapolis Real Estate Market Activity.)

Camden 151 (+11.9%)
Downtown Minneapolis 85 (-40.6%)
Longfellow 42 (-28.8%)
Nokomis 121 (-11.0%)
North 98 (-14.0%)
Northeast 73 (-6.4%)
Phillips 24 (+14.3%)
Powderhorn 76 (+16.9%)
Southwest 108 (-7.7%)
University Area 7 (-68.2%)
Uptown-Lakes 96 (-20.0%)

Minneapolis’ posted new listing for the 2008 year-to-date is behind about the same as it was last month.  From January through October of 2008, there were 9,859 new listings, compared to the 11,355 homes put on the market throughout the same time period of 2007, a change of about -13.3%. The greatest decreases in new listings for the year-to-date have happened in the Uptown-Lakes, Downtown, and Nokomis communities.  The North, Phillips, and Powderhorn communities have seen increases in listings over last year.  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 1,414 (-2.8%)
Downtown Minneapolis 1,227 (-25.1%)
Longfellow 548 (-9.1%)
Nokomis 1,094 (-24.9%)
North 1,220 (+6.0%)
Northeast 734 (-19.7%)
Phillips 281 (+12.9%)
Powderhorn 824 (+19.2%)
Southwest 1,216 (-15.7%)
University Area 210 (-20.5%)
Uptown-Lakes 1,084 (-26.9%)

Home listings may be reduced, but closed sales within the City of Minneapolis increased during October compared to last year.  There were 429 properties sold (similar to September’s 432), showing +9.7% more closed sales than the 391 homes sold in October of 2007. For the 2008 year to date, the Minneapolis closed sales are finally at and above the level of last year.  During January to October of 2007, there were 4,362 homes sold.  Last month in October, 4,496 homes sold, a +3.1% increase!  Of course, some communities are a hotter real estate commodity than others.  Camden and North have seen increases in sales this year of over 100%. Here are the closed home sales in October broken down by community:

Camden 63 (+103.2%)
Downtown Minneapolis 51 (-15.0%)
Longfellow 27 (+22.7%)
Nokomis 51 (-1.9%)
North 76 (+105.4%)
Northeast 28 (-24.3%)
Phillips 10 (+66.7%)
Powderhorn 24 (+26.3%)
Southwest 57 (-6.6%)
University Area 3 (-82.4%)
Uptown-Lakes 38 (-20.8%)

The average prices of homes sold in Minneapolis are still low.  Last month, the average price of a home sold within the city was $197,320, compared to the $255,010 homes were fetching in October 2007.  For those of you keeping score, that is a decrease in price of -22.6%.  The sales prices of homes sold in Downtown Minneapolis have risen once again, and this month real estate prices in the University Area jumped +43.9%. The average sales price of homes sold within the City of Minneapolis for the year-to-date in is now $217,328.   From January to October of 2007, that number was $259,928. The percentage of Minneapolis homes which sold at their original list price was 90.8% during the month of October, down from 92.7% in 2007. Average prices of homes sold in Minneapolis by community during October 2008:

Camden $58,701 (-46.7%)
Downtown Minneapolis $307,434 (+2.8%)
Longfellow $191,583 (-5.7%)
Nokomis $198,141 (-11.8%)
North $52,251 (-31.2%)
Northeast $133,727 (-34.6%)
Phillips $57,700 (-54.2%)
Powderhorn $115,565 (-37.0%)
Southwest $361,388 (-8.4%)
University Area $359,000 (+43.9%)
Uptown-Lakes $361,641 (-3.6%)

Finally, homes for sale in Minneapolis were on the market for an average of 124 days before they sold in October. Last year during the same month, Minneapolis homes were on the market for an average of 101 days before they were 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.

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 Minneapolis 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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