Minneapolis condos and lofts

The downtown Minneapolis condo and loft market is one that is surely in flux right now. Four to five years ago, condos and lofts were selling like “hotcakes” and they simply could not build enough properties to keep up with demand. Within the past two years or so, things really have slowed down. It was taking forever for a condo or loft to sell and frankly, the buyers seemed to be “scared off” by the media who was saying the market is horrible, etc. Times have changed however here in Minneapolis.

In today’s blog entry, I wanted to share some statistics and overall market thoughts in regards to condos and lofts here in the Twin Cities.

When we take a look at downtown Minneapolis, and compare June of 2007 to June of 2008, there have been 40.6% less listings put onto the MLS. It dropped from 207 last June to 123 this June. Closed sales increased slightly, going from 54 closings June of 2007 to 60 this June. The average sales price saw a very nice increase, going from $329,896 in June of 2007 to $364,908 in June of 2008. When we take a look at the percent of list price received at closing, that number has stayed fairly steady. It was 95.4% in June of 2007, and this June it was 94.8%.

Average days on market unfortunately increased dramatically, going from 162 to 241 days. The active for sale inventory on MLS also dropped significantly, going from 646 in June of 2007 to 507 active listings this past June.

Let’s now take a look at year to date numbers through the end of June for our loft and condo market in Minneapolis. Year to date, there have been 24.1% less listings put on the market, with only 789 going on MLS this year. Closed sales are up significantly (34.8%), with 310 properties closing through the end of June. The average sales price has also seen a very nice increase, going from $319,136 to $325,687. The average days on market has increased, going from 171 last year to 213 days through the end of this June.

In spite of what the media has been telling us about the downtown market and really the entire Twin Cities real estate market, things are not all “gloom and doom.” These numbers we just shared are extremely encouraging for not only sellers looking to sell their loft of condo in Minneapolis, but buyers as well. Perhaps with the rapid increase in gas prices, some buyers are looking at moving and living closer to work to save money.

In conclusion, the market here in Minneapolis for lofts and condos has most assuredly stabilized. Prices have slowly risen this year, and closed sales are up significantly. These are two great signs indeed!

Buyers, there are a number of great units to choose from, and sellers remember however, price and condition remain paramount in this market.