MN Real Estate Market Update: November 2009

The Webber-Camden community, commonly referred to as “Camden,” is located in the upper half of the north side of Minneapolis. Its boundaries are 53rd Avenue North to the north, the Mississippi River to the east, Lowry Avenue North to the south, and Xerxes Avenue North to the west. Today we’re comparing housing market figures for Camden from November 2008 to data collected in November 2009. We’ll also examine year to date information for Camden and the city of Minneapolis.

In November 2008, the single-family detached inventory for the Webber-Camden neighborhood in Minneapolis was 416 homes on market, 113 being new listings. In November 2009, the number of homes on the market dropped 39.4% to 252 and of those, 74 were new listings. The new listing difference amounts to a 34.5% decline over the previous year. This change follows the year-to-date trend with fewer new listings being added to the market: 1,550 in 2008 down to 1,231 in 2009, a -20.6% adjustment.

The ratio of new listings to closed sales for November 2009 and the year-to-date is positive. For closed sales in November ‘08 and at the year-end of 2008, the numbers were 61 and 667 respectively. Closed sales for November ‘09 jumped 27.9% to 78 with the year-to-date at 856 closings, a positive 28.3% change over the previous year.

The median sales price for November 2008 jumped 89.1% from $50,500 to $95,500 in November 2009. The median sales price for the year-to-date decreased 18.1% from $61,063 to $50,000 in 2008 and 2009 respectively. However, the percent of sellers receiving the original list price rose 9% from November 2008’s 92.4% to 100.7% in 2009. The entire Webber-Camden community saw an increase in sellers receiving the original list price, the year-to-date change rose 10.9% from 85.9% in 2008 to 95.3% in 2009.

The average number of days on the market before a home sold fell 8.3% from 132 days in November 2008 to 122 days in November 2009, more than the year-to-date change which slipped 32.8% from 159 days in 2008 to 107 days in 2009. Interestingly, in 2008 the Camden neighborhood listed 13 townhouse / condos active on the market. In 2009 those same 13 units remain on the market.

Minnesota Real Estate City of Minneapolis Market Update

Data collected from the neighborhoods that comprise Minneapolis show similar trends as the Webber-Camden neighborhood. In Minneapolis there were 483 new listings in November ‘09, down 23.9% from November ’08’s 635 listings. The year to date figures are down 11.0% from 10,497 new listings in 2008 to 9,339 listings in 2009. Closed sales are up 38.5% from November 2008’s 343 to November 2009’s 475. The average sales price for properties in Minneapolis increased 9% from $175,823 to $191,572 in November 2008 and November 2009 respectively. The year to date average sales price is down, however, 14.2% from $214,080 in 2008 to $183,783.

In other positive Minnesota real estate news, residents in Minneapolis saw an increase of 6.9% of sellers receiving the original list price from November 2008’s 90.2% to November 2009’s 96.4%. Likewise, in November 2008 the average number of days a Minneapolis property remained on the market was 129, which fell 22.1% to 101 days in November 2009. The year to date change has also fallen 12.6% from 2008 to 2009.

The facts and figures above point to a housing market that is making a steady recovery. Further evidence can be found by examining Standard & Poor’s Case-Shiller Home Price Indices which shows a slow increase in home prices over the past nine months for home owners.

First time home buyers need to be aware of these conditions because early speculation states that interest rates for a 30-year mortgage, which have been hovering around 5%, will rise in early spring 2010. This information coupled with ever-rising home prices means that first time home buyers in Minnesota should act before its too late.

There are free classes available for first time home buyers in Minnesota to help you. Presented by The Minnesota Real Estate Team, you can use their knowledge to help you find that perfect home in the Webber-Camden neighborhood of Minneapolis.

Thanks to our friends at the Minneapolis Area Association of Realtors for providing these valuable statistics.