Downtown Minneapolis Real Estate Market Monthly Update – July, 2008

Back towards the end of June we took at look at the downtown Minneapolis real estate market through the end of May, 2008. In today’s entry, we will bring you more up to date with the latest market statistics.

First of all, let’s look at the month of July in 2007 compared to July in 2008. The downtown Minneapolis real estate market saw 126 new listings put onto the market, a decrease of 19.7%. 50 properties closed in July, a decrease of 25.4% compared to July of 2007. The average sales price rose significantly, going from $278,197 to $358,812. This is an increase of 29%. The percent of original list price received at the time of sale dropped from 98.2% to 96.1%. Average days on market, similar to many parts of Minneapolis, increased from 82 to 105 days. The overall townhome and condo inventory level in downtown Minneapolis dropped from 685 to 521, a decrease of 23.9%.

Now looking at January through July of 2007 compared to January through July of 2008, there has been a drop of 23.6% in new listings put onto the MLS. The downtown market has seen 915 new listings go active this year. Closed sales are up nicely, going from 297 to 360 closings. This is an increase of 21.2%. The average sales price has seen a very sizable increase, going from $309,900 to $330,288. This is a 6.6% year over year increase. In fact, this is probably one of the largest increases we have seen for the entire Twin Cities real estate market. The percent of original list price received at the time of sale stayed very level, going from 96.3% to 96.1%. Average days on market did increase from 151 to 198 days. This is an increase of 31.3%.

In conclusion, these numbers are great news indeed for the Minneapolis real estate market. A 21.2% increase in closings here in 2008. And a 6.6% in the average sales price. Perhaps as gas prices continue to remain high, the average downtown Minneapolis worker and buyer chooses to live closer to work.