Minneapolis Real Estate Market Analysis: November 2008

The number of new listings in Minneapolis has declined compared to last year again during the month of November, according to the Minneapolis Area Association of Realtors’ Market Update for 100 Twin Cities Communities.  There were 634 new listings, while in November 2007, there were 711 new listings.  That adds up to a decrease of -10.8%. During November, several communities did experience increases in new listings.  The Nokomis and Uptown-Lakes communities saw decreases in new listings.  Here is an inventory of November 2008 new listings in Minneapolis by community and the percentage of change that has occurred compared to November 2007 (Previous Barker & Hedges article about October 2008 Minneapolis Real Estate Market Activity.)

Camden 107 (+11.5%)
Downtown Minneapolis 88 (-9.3%)
Longfellow 38 (+5.6%)
Nokomis 50 (-40.5%)
North 77 (-26.7%)
Northeast 55 (+12.2%)
Phillips 20 (+17.6%)
Powderhorn 48 (-4.0%)
Southwest 67 (-5.6%)
University Area 15 (+200.0%)
Uptown-Lakes 65 (-34.3%)

Minneapolis’ posted new listing for the 2008 year-to-date is still well behind last year’s figures.  From January through November of 2008, there were 10,492 new listings, compared to the 12,066 homes put on the market throughout the same time period of 2007, a decrease of about -10.8%. The greatest declines 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 posted new listings for homes over last year.  Here is a demonstration 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 1,524 (-1.7%)
Downtown Minneapolis 1,293 (-25.5%)
Longfellow 587 (-8.1%)
Nokomis 1,143 (-25.8%)
North 1,299 (+3.4%)
Northeast 789 (-18.1%)
Phillips 305 (+14.7%)
Powderhorn 883 (+19.2%)
Southwest 1,283 (-15.3%)
University Area 225 (-16.4%)
Uptown-Lakes 1,150 (-27.3%)

Closed sales within the City of Minneapolis dipped compared to last year in November.  There were just 300 properties sold. That is less than the 325 of November in 2007 and is unfortunately much lower than last month’s 429 homes that sold. For the 2008 year to date, the Minneapolis closed sales are above the level of last year.  During January to November of 2007, there were 4,687 homes sold.  Last month in November, 4,840 homes sold, a +3.3% boost!  Of course, properties in some communities are selling better than others.  The Phillips and North communities, there was an increase in sales of over 200% during November. North will likely end the year with a 100% increase in home sales over 2007. Here are the closed home sales in November broken down by community:

Camden 52 (+36.8%)
Downtown Minneapolis 29 (-52.5%)
Longfellow 21 (-0.0%)
Nokomis 32 (-31.9%)
North 56 (+229.4%)
Northeast 23 (+21.1%)
Phillips 9 (+200.0%)
Powderhorn 29 (+141.7%)
Southwest 26 (-53.6%)
University Area 4 (-50.0%)
Uptown-Lakes 18 (-57.1%)

The average prices of homes sold in Minneapolis are still falling.  Last month, the average price of a home sold within Minneapolis was $170,149, compared to the $274,983 homes were fetching in November 2007.  That is a decrease in price of -38.1%. The sales prices of homes sold in Downtown Minneapolis have risen slightly and was the only communities to experience any increase in sales price. The average sales price of homes sold within the City of Minneapolis for the year-to-date in is now $214,239.  From January to November of 2007, that number was $260,962. The percentage of Minneapolis homes which sold at their original list price was 89.8% during the month of November, down from 92.2% in 2007. Average prices of homes sold in Minneapolis by community during November 2008:

Camden $73,819 (-31.5%)
Downtown Minneapolis $337,787 (+1.4%)
Longfellow $195,102 (-13.7%)
Nokomis $211,852 (-1.0%)
North $52,265 (-37.8%)
Northeast $152,985 (-26.0%)
Phillips $68,557 (-56.7%)
Powderhorn $96,926 (-17.5%)
Southwest $321,836 (-18.6%)
University Area $211,250 (-5.8%)
Uptown-Lakes $285,561 (-32.3%)

Finally, homes for sale in Minneapolis were on the market for an average of 128 day before they sold in November, not far off of October’s 124 days. Last year during November, Minneapolis homes were on the market for an average of 102 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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