North Minneapolis Market Monthly Update – May, 2008

Let’s take a look at what is happening for real estate buying and selling in North Minneapolis. Comparing May of 2008 to May of 2007, there have been exactly the same number of homes put onto the market, 118. Closed sales are up 67.6% this May, with 57 properties closing. The average sales price however is down dramatically, from $119,315 to $57,256 (52%.) Average days on market in North Minneapolis is down 40.4%, from 192 days last May to 114 days in May of 2008. As far as new single family homes that are for sale on the market, there were 386 actives in May of 2008, compared to 422 actives in May of 2007.

When looking at January through May, comparing 2007 to 2008, there are some staggering numbers to share. Closed sales are up by almost 75%, from 134 sales in 2007 to 234 closings in 2008. The average sales price has really taken a huge hit. In 2007, it was $114,300. Now in 2008, it has dropped to $66,656. The average days on market is down 18%, from 178 days last year to 146 days this year. The percent of original list price received at the time of sale stayed pretty level, with it being 85% in 2007, and now 84.1% here in 2008.

After so many newspaper front page headlines, we all know North Minneapolis was a victim to a large amount of mortgage fraud by various real estate investors the past few years. It is encouraging to see so many closings this year however. Even though price has dropped, there is a lot of buying activity taking place in this area. The market seems to have hit bottom and has begun moving upward.