Minneapolis Real Estate Market Analysis February 2009

According to the Minneapolis Area Association of Realtors’ Market Update for 100 Twin Cities Communities, the number of February 2009 new listings in Minneapolis dropped compared to 2008’s figures.   There were 764 new listings in the city, while in 2008 there were 952, a decrease of -19.7%. The Longfellow and University communities of Minneapolis saw slight increases in new listings, while the rest of the communities saw their new listings decrease.  Here is an inventory of February 2009 new listings in Minneapolis by community and the percentage of change from 2008.

Camden 98 (-27.9%)
Downtown Minneapolis 97 (-26.5%)
Longfellow 43 (+4.9%)
Nokomis 94 (-8.7%)
North 115 80 (-30.4%)
Northeast 55 (-15.4%)
Phillips 17 (-65.3%)
Powderhorn 51 (-30.1%)
Southwest 117 (-3.3%)
University Area 14 (+7.7%)
Uptown-Lakes 97 (-4.0%)

For the year to date, there have been 1,583 homes listed for sale in Minneapolis, down -18.1% from the 1,934 homes listed during the same time period of 2008. Cumulatively for the year, all communities in Minneapolis have experienced decreases in new listings.

Closed sales within Minneapolis during February were down a little compared to 2008, but weren’t that far off considering recent real estate market performance.  There were 296 properties sold in the month of February, down -5.1% from the 312 properties sold in February last year and just a little below the 303 properties sold this January. Lots of homes sold in Camden, Northeast, Phillips, and Powderhorn communities, while sales are way down in both Uptown and Downtown. Here are the closed home sales that occurred within Minneapolis during February, broken down by community and compared to 2008:

Camden 53 (+55.9%)
Downtown Minneapolis 31 (-54.4%)
Longfellow 10 (-28.6%)
Nokomis 34 (-29.2%)
North 53 (+1.9%)
Northeast 23 (+76.9%)
Phillips 10 (+400.0%)
Powderhorn 29 (+93.3%)
Southwest 27 (-0.0%)
University Area 6 (+20.0%)
Uptown-Lakes 20 (-41.2%)

For the year to date, however, closed sales within Minneapolis are actually up +5.2%, from the 579 in January and February of 2008 to the 609 sold during the same months of 2009.

The median prices of homes sold in Minneapolis have continued to fall.  The median home price of $150,320 in January fell to $112,500 in February, a full -40.2% less than the $188,000 they fetched in 2008.  Though there were fewer sales in Uptown and Downtown, the sales prices of homes sold in those communities did rise slightly.  Otherwise, the rest of the Minneapolis communities saw decreases in their home values. The percentage of homes which sold at their original listing price was 90.2% in February 2009, a slight decrease from the 90.9% in 2008. Average prices of homes sold in Minneapolis by community during February 2009:

Camden $38,000 (-41.5%)
Downtown Minneapolis $250,000 (-0.9%)
Longfellow $191,580 (+6.6%)
Nokomis $184,350 (-4.0%)
North $26,100 (-55.0%)
Northeast $151,750 (-15.7%)
Phillips $85,000 (+87.0%)
Powderhorn $85,000 (-22.7%)
Southwest $250,000 (-16.4%)
University Area $199,000 (-28.6%)
Uptown-Lakes $171,735 (-20.7%)

For the year to date median sale price of homes in Minneapolis, the outlook is a little worse.  For January and February so far, the median home price is $104,000.  That’s -44.4% less than the $187,000 for the same time period of 2008.

Lastly, homes for sale in Minneapolis were on the market for an average of 133 day before selling in February. In the same month of 2008, Minneapolis homes were on the market for an average of 130 days.   The statistics vary based on neighborhood and the types of housing on the market. Homes sold in Camden and Nokomis were on the market for just about three months while those in Phillips, Powderhorn, and University are spending just less than 6 months on the market. Condos and town homes are selling more quickly, while single family homes tend to stay on the market 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. You can also read about January 2009 Minneapolis real estate statistics.

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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