While the Minneapolis real estate market is hot right now, we’ll stop short of calling in the fire department. There is excellent news, however, for sellers in the July statistics – if you plan on moving soon. Wait too long and this robust seller’s market may turn, especially as we get closer to back-to-school time and if interest rates inch up. In other words, if you’re thinking of selling a house in Minneapolis, jump in now.
Inventories are down in all of Minneapolis’ neighborhoods, which is bad news for homebuyers. You’ll find lots of competition in the Minneapolis real estate market right now.
If you plan on buying a Minneapolis home soon, read our tips on how to compete and win in the current market.
News for Minneapolis Home Buyers
In May, 786 homes in Minneapolis were listed for sale. In June that number increased by two, to 788. Closed sales were up almost 10 percent, meaning that homes in good condition are selling fast. In fact, they remain on the market 10 days less than they did in the previous month.
If more homeowners decide to sell in the near future it may give our inventory a boost which would be a welcome change for homebuyers. Right now, however, it’s a seller’s market in Minneapolis.
News for Minneapolis’ Home Sellers
The median sales price of a Minneapolis home has increased yet again and now stands at $234,450. Of course this is the median for the whole city – scroll down to see a neighborhood breakdown.
As was the case in the previous month, homes are selling faster and for closer to asking price in Minneapolis. Sellers are receiving 98.6 percent of their original list price, on average.
When we break the market down into neighborhoods we see that prices rose in all of Minneapolis’ neighborhoods with the exception of Central.
Let’s take a look at the neighborhoods with the biggest increase in home prices:
Near North – While still one of Minneapolis’ most affordable neighborhoods, prices took a steep climb in Near North. The median sales price increased 39.2 percent, from $90,500 to $126,000. It is definitely a great time to either buy or sell right now in Near North.
Southwest – June brought yet another hike in the median sales price in the Southwest area. Up more than 25 percent over last year, the median sales price here went from $308,425 in June of 2014 to $386,500 last month.
Longfellow – Longfellow has one of the most robust housing markets in Minneapolis. The median sales price of a home here increased 23.5 percent over June of 2014, from $197,750 to $244,250. Last month the median sales price in Longfellow was $206,250. Happy times for Longfellow homeowners selling their houses.
The only Minneapolis community that saw a drop in the median home price from last year to this year is Central, and what a drop it is! From $359,273 last year to $252,000 this year represents an almost 30 percent decrease in prices. This is where those on a budget and first-time buyers should shop for homes. It’s the ideal time to pick up a home in Central for far less than you could have purchased it one year ago. Hey, these are bargain prices compared to the previous month, when the median sales price was $287,000.
Homeowners in Powderhorn are realizing, on average, 101 percent of the original list price for their homes. On the flipside, however, those in Calhoun Isles are receiving only 94.7 percent of their original list price.
Homes in Phillips are selling the quickest, spending 37 days on the market. This is, however, an increase from 2014 when homes for sale in Phillips spent an average of 21 days on the market. Phillips also has the smallest inventory of available homes while Southwest has the most homes for sale.
Image courtesy of Minnesota Department of Transportation