May 2008 Minneapolis Market Snapshot

What’s going on with the real estate market in Minneapolis? We wanted to provide you a quick snapshot of how things are looking right now. Comparing January through May of 2008, to January through May of 2007, Minneapolis as a whole has seen a drop of 15.7% in average sales price. Year to date, the average sales price is at $214,414, where last year it was at $254,388. Thankfully, there have been 13% less listings that have been put on the MLS. Market time is rising. So far, average market time is at 149 days, compared to 2007 where average DOM was 130 days. Closed sales have seen a decline this year of 5.8%, with 1,657 closings taken place so far this year.

When we compare the month of May, 2008 to May of 2007, we have seen 18.8% less listings come onto the market here in Minneapolis, and 16.5% less properties go pending. Average sales price has dropped significantly, from $262,440 to $199,392. Inventory-wise, we have seen a drop of 2.1% of single family homes put onto the market here in May of 2008, and 17.6% less townhomes and condos.

When we look at various neighborhoods in Minneapolis, there are a number of statistics of interest: the North Minneapolis area has seen an increase of 74% in closings here in 2008 compared to last year, with the Minneapolis Uptown area seeing a drop of 33% in closed sales. Camden has seen an increase in 38.2% in closings in 2008, with the Phillips neighborhood down 48.3%.

As far as average sales price comparing 2007 to 2008 year to date, the Uptown-Lakes area has seen an increase of 3.8% year to date, with many neighborhoods down significantly: the Phillips is down 42.6%, and North down 41.7%. Downtown Minneapolis has held steady at a 0.1% increase here in 2008.