Downtown Minneapolis Market Monthly Update – May, 2008

I wanted to post an entry specifically on the downtown Minneapolis real estate market, and what has happened comparing May of 2008 to May of 2007. There have been 31.8% less listings put on the market this May, with only 120 properties being put onto the MLS. The average sales price actually has increased, from $320,846 in May of 2007, to $345,526 in May of 2008. Average days on market has stayed somewhat consistent, with this May seeing a drop of 5.7%, The overall inventory levels for single family properties dropped 28.6%, and the active townhome and condo listings dropped by 14.6% (from 602 listings last May to 514 this May). As far as closed sales, the downtown area saw a 1.9% increase this May, going from 53 sales last year to 54 this year.

When comparing January through May of 2007 to 2008 at the exact same time, downtown Minneapolis saw 20% less listings put onto the MLS. 2008 has seen 666 new properties come onto the market. Thankfully, there has been a 42% increase in closed transactions, with 250 properties closing so far in 2008. The average sales price stayed pretty level, going from $315,834 to $316,274 this year. The average days on the market has increased by 18.7%, with current market time now at 206 days. The percent of original list price received at the time of sale has also stayed very level. Last year it was 95.9%, and this year it is 96.5%.

These numbers are actually somewhat refreshing for our downtown condo market. We know the Minneapolis condo market has “taking a beating” over the last couple of years pricewise and inventory wise, but these numbers do seem encouraging for those that own and live in the downtown market.