Minneapolis Real Estate Market Analysis: September 2008

The number of new listings in Minneapolis decreased during the month of September compared to last year’s statistics, according to the Minneapolis Area Association of Realtors’ Market Update for 100 Twin Cities Communities.  In that month, there were 892 new listings. In September 2007, there were 1,021 new listings, which adds up to a drop of -20.3%. During September, the Nokomis, Downtown, Uptown-Lakes, and Northeast communities experienced the greatest decrease in new listings during September.  On the other hand, the Longfellow community saw a 42.5% increase in new listings.  Here is an inventory of September 2008 new listings in Minneapolis by community and the percentage of change that has occurred compared to September 2007 (Previous Barker & Hedges article about August 2008 Minneapolis Real Estate Market Activity.)

Camden 115 (-10.2%)
Downtown Minneapolis 122 (-20.3%)
Longfellow 57 (+42.5%)
Nokomis 82 (-35.4%)
North 104 (-1.9%)
Northeast 64 (-21.0%)
Phillips 21 (-12.5%)
Powderhorn 73 (+4.3%)
Southwest 123 (-12.8%)
University Area 17 (-5.6%)
Uptown-Calhoun Lakes 107 (-20.1%)

Minneapolis’ posted new listing for the 2008 year-to-date slipped is now -13.1% behind last year’s figures.  From January through September of 2008, there were 8,978 new listings, compared to the 10,021 homes put on the market throughout the same time period of 2007. The greatest decreases in new listings for the year-to-date have happened in the Uptown-Lakes and Downtown areas.  The Phillips, North, and Powderhorn communities each have about 10% more listings than 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 1,256 (-4.2%)
Downtown Minneapolis 1,141 (-23.8%)
Longfellow 504 (-7.2%)
Nokomis 1,026 (-22.3%)
North 1,126 (+9.0%)
Northeast 661 (-20.7%)
Phillips 254 (+12.9%)
Powderhorn 694 (+10.5%)
Southwest 1,104 (-16.2%)
University Area 204 (-17.4%)
Uptown-Calhoun Lakes 999 (-26.7%)

However, closed sales within the City of Minneapolis jumped during September compared to last year.  There were 432 properties sold, a whopping 15.5% more closed sales than in September of 2007. For the 2008 year to date, the Minneapolis closed sales are now nearly at the level of last year.  During January to September of 2007, there were 3,671 homes sold, which is just 2.9% more than the 3,563 sold this year.  This month, the only Minneapolis communities which didn’t experience an increase in home closings was Downtown, Nokomis, Southwest, and Uptown-Lakes.  Here are the closed home sales in September broken down by community:
Camden 64 (+146.2%)
Downtown Minneapolis 45 (-28.6%)
Longfellow 37 (+12.1%)
Nokomis 54 (-19.4%)
North 55 (+89.7%)
Northeast 37 (+54.2%)
Phillips 10 (+100.0%)
Powderhorn 34 (+78.9%)
Southwest 52 (-1.9%)
University Area 6 (+200.0%)
Uptown-Calhoun Lakes 37 (-30.2%)

The average price of a home sold in Minneapolis during September did take quite a slide.  In September 2007 the average sales price of a home sold in Minneapolis was $266,439.  Last month, it was -23.1% lower at $204,768.  For the umpteenth month in a row, the sales prices of homes sold in Downtown Minneapolis and the Uptown Area have increased due to high demand for properties there.  The average sales price year-to-date in the City of Minneapolis is now $219,912.   From January to September of 2007, that figure was $260,409. The percentage of Minneapolis homes which sold at their original list price was 90.6% during the month of September, down from 94.1% in 2007. Average prices of homes sold in Minneapolis by community during September 2008:

Camden $81,167 (-33.6%)
Downtown Minneapolis $361,164 (+4.2%)
Longfellow $180,049 (-19.8%)
Nokomis $214,801 (-15.4%)
North $51,977 (-50.7%)
Northeast $156,348 (-15.5%)
Phillips $106,330 (-41.2%)
Powderhorn $103,950 (-39.0%)
Southwest $305,185 (-15.6%)
University Area $172,417 (-23.5%)
Uptown-Calhoun Lakes $443,969 (+28.0%)

Finally, 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 September, Minneapolis homes tended to be on the market for an average of 97 days before they were sold.  During September of 2008, a home was on the market for an average of 130 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.

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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