We hear it often: “Real estate is local,” but I’m always fascinated by just how local real estate really is. For instance, although we consider the Twin Cities our local area, when we look at the latest real estate market statistics, they vary widely from city-to-city- within the region. Some cities have better news than others, and Minneapolis is one of them.
Great News for Minneapolis Home Sellers
The news for homeowners who are thinking of selling their Minneapolis homes is mixed. First, the best news: the median home price has increased more than 20 percent over this time last year. It now sits at $218,500.
There’s a telltale sign in the numbers though that you should take heed of if you’re sitting on the sidelines waiting to sell. The number of new listings to hit the market has increased as well, up almost 15 percent over last year.
With more homes coming on the market, we are assuming that the current low inventory will begin to swell, creating competition among home sellers. This, however, remains to be seen, as the current inventory, despite the increase in listings, is down more than 17 percent over last year.
To drill down to an even smaller local area, the biggest price jumps occurred in the following neighborhoods:
- University – median price increased 63.5 percent to $275,000
- Near North – median sales price increased 50.7 percent to $123,750
- Phillips – median sales price increased 46.2 percent to $194,500
- Camden – median price increased 35.5 percent to $119,000
- Calhoun-Isle – median home price increased 22.2 percent to $420,250
The only Minneapolis neighborhood where prices dropped was Central, where they fell 11.1 percent to $244,250 from $274,735.
If you’re a first-time buyer looking for entry-level priced homes, do look in the Near North and Camden areas. Although prices rose here, they are still within the reach of a budget buyer.
Image" "Money" by Andrew Magill via CC by 2.0