The area in Minneapolis which has the most single listings is by far downtown Minneapolis. With the inventory largely condominiums, it is easier to break down the data, separating out the houses (only six for sale currently) from the condos. Below is a break down of what has happened so far this year when compared to 2007 for downtown Minneapolis condominiums:
- Average Days on the Market (DOM) : it is taking on average 108 days for a Minneapolis condo unit to sell, up an amazing 28% from this same time last year!
- Inventory : the good news is that the number of condos for sale in downtown has decreased by 28%. This means there is less competition compared to 2007, and because of this inventory decrease, the Average Price for condos has increased by 5.6%. The only downside is that the number of closings so far in 2008 is pretty much the same as that in 2007.
- Foreclosure Rate: So far this year, of the 571 closed sales, between 7-8.5% of them have been foreclosures or short sale properties. I don’t know about you, but that is a pretty low portion of condo sales. When compared to the average Twin Cities real estate market, which is at 35% rate of foreclosure, it is really quite good.
So the bottom line is this, if you own a condominium in downtown Minneapolis, keep your chin up. While times are tough, if you stay positive and have patience, your condo will most likely sell. Just remember to keep your asking price realistic, and possibly ahead of the market. With current listings receiving 96% of the asking price, pricing it right from the start is imperative. Before you know it, Spring will be here and a new wave of home buying will begin!