The Minneapolis Real Estate Market Monthly Update – June, 2008

The 4th of July has come and gone, and we are moving almost into the middle of July. This past week, the most recent real estate and MLS numbers for the month of June for the city of Minneapolis have come out. In this entry, we will take a look at both June of 2008 compared to June of 2007, as well as January through June of 2007 to 2008 at the same period.

Let’s start out looking at the month of June alone: in June 2008, there were 1049 new listings put onto the MLS. This was down 11.4% from 2007. Closed sales rose 5.5%, with 516 properties closing this June. The average sales price dropped significantly, going from $280,358 in June of 2007 to $222,804 in 2008. This is a decrease of over 20%. Average days on market increased 23.5%, from 116 days in June of 07 to 143 days this past June. Overall inventory levels for single family homes in the city of Minneapolis dropped 6.2%, and the townhome and condo inventory levels also dropped 20.7%.

Now let’s take a look at the Minneapolis real estate market year to date. How have things “shook out” this year versus last? (Hopefully these numbers won’t make us all go to the medicine cabinet to look for some Mylanta?!!) When we look at new listings put onto the market, there have been 12.8% less listings here in 2008 (Thank goodness!) Closed sales unfortunately have dipped a bit, going from 2,248 last year to 2,173 this year through the end of June. Average sales price is down a dismal 16.8%, from $260,037 to $216,406. The percent of original list price received at the sale also dropped 4.6%, from 94.8% last year to 90.4% this past year. Average days on market increased from 127 in 2007 to 148 here in 2008.

Unfortunately these numbers are not great news for homeowners in Minneapolis. As expected, the average sale price continues to show a large year over year drop, and closed sales have dipped as well. There are some bright spots however. Parts of Minneapolis have seen a huge increase in year over year closed sales as well as average sales price.

Some of our upcoming entries this month will go into greater detail into the various neighborhoods in Minneapolis and what has taken place with real estate year to date. Stay tuned and check back for more updates on the latest numbers for Minneapolis real estate and homes on the Minneapolis mls!