Due to Minneapolis encompassing a large area of real estate, the local Realtor association has created 11 areas in Minneapolis in order to better organize the sale data.The Downtown region is denoted by the number 302 in our multiple listing system.
Following is some year-to-date (YTD) sales information.
- Average Sales Price : YTD the average sales price is $311,511. In 2006, it was $313,644. Values have been holding steady in downtown with an overall decline of only .07%.
- % of Original List Price Received : currently sellers are getting 95.8% of the list price, where in 2006, sellers were receiving 102% or more. Home owners are realizing that in order to sell, they must have multiple price reductions because they are not pricing the home correctly from the beginning. In 2006, some owners were getting multiple offers, with buyers offering over list to get the property. Those days are now long gone and buyers are hard to find.
- Average Days on the Market : it is taking 171 days for a home to sell Downtown, one of the longest selling areas in Minneapolis year to date
- New Listings vs. Closed Listings : YTD there have been 609 homes listed for sale (with only 7 being single family homes) most being condominium units, down 20% from 2006. At the same time, only 165 have closed this year, which is down 66% from 2006!
As you can see, the downtown market is experiencing a major market correction. While it was trendy to live downtown and buy a condo, it may not be so much anymore. Home owners are learning that to sell, they must reduce their prices, but buyers aren’t seeing the reductions they want, as evidenced in the small amount of 2007 solds.
I will be posting updates every couple months as the new data is released so you can get a better view of how the market is progressing as the year goes on.
So far the Lakes area and Camden area have been highlighted so check those markets out while I get more data ready for you to read!