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Wednesday, December 03, 2008Minneapolis - University Area Real Estate Update
The University area of Minneapolis is a popular one with thousands of students coming and going each year. Truly a great place to live or invest! Comparing October of 2008 to October of 2007, there was a decrease of 68.2% in new listings put on the market. Closed sales are down 82.4% this October, with only 3 listings closing. The average sales price of a property however went from $249,423 in Oct 2007 to $359,000 in Oct 2008, an increase of 43.9%. Average days on the market in the University area are up 210.9%, from only 33 days last October to 102 days in October of 2008. There were 24 active single-family homes on the market this October and 61 active townhome-condo listings. Single-family inventory is down 27.3% and townhome-condo inventory is up 41.9%.
When comparing January through October of 2007 to January through October of 2008, closed sales are down 34.4%, from 122 sales in 2007 to 80 closings in 2008. The average sales price went from $259,950 in 2007 to $221,486 in 2008. Average days on the market increased 44.8%, to 115 days. The percent of original list price received at the time of sale dropped 2.5%, equaling 93.3% in 2008.
It still remains quite prevalent that new listings are declining in this area. It could be because more properties are owned by investors (and students rent from them) than people really buying in this area as owner occupants. Closed sales are down over 34% from last year, so the market remains tougher for sellers. The townhome and condo inventory is way up right now, also meaning people are seeking single family homes in this area. However, looking at days on market, properties are not staying on the market as long as other areas of Minneapolis! Other than Longfellow, homes in the University area are selling faster than most neighborhoods of Minneapolis.
