MN Real Estate Market Update – February, 2009

The Phillips neighborhood is a very diverse community where crime rates are declining due to increased enforcement. Comparing January of 2008 to the month of January in 2009, there were 7.1% fewer listings put onto the market, with 26 properties going onto the MLS this January. There were nine closings this January, an increase of 125% over last January’s four closings. The average sales price January of 2009 decreased 7.8%, from $95,575 to $88,083. The percent of original list price received at the time of sale decreased from 91.2% last January to 84.5% this January. Average days on the market decreased 5.2%, with an average of 201 days this January vs. 212 days last January. For single family detached listings on the market, there were 37 listings on the MLS this January, an decrease of 11.9% compared to the 42 last January. The townhome-condo inventory decreased 28.4% from 67 to 48 active listings in January of 2009.

Now we’ll compare the entire year of 2007 to the entire year of 2008 for this part of the Minneapolis real estate market. New listings are up 13.9%, with 319 listings put onto the market this year. Closed sales increased by 6.1% with 87 properties closing in 2008. The average sales price in the Phillips neighborhood is down 41% from last year, going from $167,278 to $98,613. The average days on the market until sale in 2008 were 147 days, an increase of 50.4% over 2007. The percent of original list price received at the time of sale dropped 8.4%, from 94.4% to 86.5% in 2008.

Aside from Camden, Phillips had homes on the market, on average, the longest of all other Minneapolis neighborhoods in 2008. This is very unexpected based on he numbers the last time we looked at the Philips neighborhood (November)! Today there are 133 listings in Phillips, ranging from a $7,500 rehab to a $1.7M apartment building and everything in between!