What a difference a month makes! This month’s Minneapolis real estate market statistics look nothing like last month’s, although it appears we’re still in a strong seller’s market.
Inventories are down in all of Minneapolis’ neighborhoods, with the exception of University where it increased more than 1.5 percent. Tight inventories mean competition among buyers so check out these tips for how to do battle in the Minneapolis home buying market.
What this means for you, if you’re just now getting into the market, is that you need to go in prepared to do battle with other home buyers. Check out these tips about how to compete in the market and win. Another good idea is to enlist our help ― sign up for our FREE Home Finder service.
News for Minneapolis Home Buyers
The number of homes to hit the market in May was down almost 10 percent over this time last year. Despite this, the inventory of available homes loosened slightly (a 2.8 month supply of available homes compared to 2.5 in April).
If inventory continues to increase while new listings remain scant we’ll call it a trend to a more normalized market. But right now, sellers are still in the driver’s seat.
If you are a first-time homebuyer you may want to start your search for a Minneapolis home in Camden, the neighborhood with the lowest median sales price.
News for Minneapolis’ Home Sellers
Sales prices, at least on a year-over-year basis, are a bit of a rollercoaster ride lately. May’s median sales price of a Minneapolis home was $224,165. That’s down 2.5 percent over this time last year but it’s up slightly from last month’s $214,950. We expect further increases as we move deeper into summer.
Another bit of good news for homeowners planning on selling is that homes are selling quicker this year, remaining on the market 65 days, on average, compared to 71 last year.
When we break the market down into neighborhoods we see that prices rose in about half of Minneapolis’ neighborhoods. Last month, they rose in all but two.
Let’s take a look at the neighborhoods with the biggest increase in home prices:
- Powderhorn – The biggest winner in the home price contest in Minneapolis is the Powderhorn neighborhood with a 12.3 percent increase since this time last year. The median sales price here now sits at $194,300.
- Phillips – May saw another hike in the median sales price for a Phillips neighborhood home. Up 12.3 percent over last year, the median sales price here is now $135,000. Keep in mind, however, that this number represents a steep decline from last month, when the median sales price was $161,250. Don’t let this frighten you, however. It could merely mean that more high-end homes sold last month, slightly skewing the figures.
- Longfellow – Homeowners in Minneapolis’ Longfellow neighborhood will be happy to hear that the median sales price here is up 5.8 percent over this time last year and now sits at $206,250.
The biggest loser, as far as prices are concerned, is the University neighborhood that saw a 40.9 percent decrease in the median sales price over last year, from $355,000 to $209,900. This is, however, an increase over last month’s $198,500 median sales price. The Central neighborhood also saw a dramatic decrease in median sales prices - from $380,000 in May of 2014 to $287,000 last month.
Homeowners in Powderhorn and Longfellow are realizing, on average, more than 100 percent of the original list price for their homes.
Homes in the Nokomis neighborhood are selling the quickest. Naturally, inventory there decreased the most.
"Sky and Prairie-Powderhorn-Minneapolis-2006-05-07" by Michael Hicks - flickr. Licensed under CC BY 2.0 via Wikimedia Commons