University Area – Minneapolis Real Estate

University Area of Minneapolis, MN Real Estate Market Update – September, 2008

Today, we will explore market trends in the University area of Minneapolis. This is appropriate now since school is back in session and the city is alive with people and fun fall activities! The University area of Minneapolis not only has some outstanding and unique homes, townhomes, and condos, but is an awesome location as well. And if you love being in the city where there are lots of fun activities, shopping and nightlife to offer, this would be a great place for you! Let’s take a look to see what is happening with the real estate numbers near the University of Minnesota in Minneapolis.

First comparing the month of August in 2007 to the month of August in 2008, there was a drop in new listings put on the MLS by 37% this August. 17 properties went active onto the market. 17 properties closed in August of 2008, down from 21 in August of 2007. The average sales price dropped 12%, going from $224,841 to $197,900. Great for you as a buyer! The percent of list price received at the time of sale did in fact drop by 5.2%, going from 97.2% to 92.1%. Average days on the market is up 52.3%, going from 60 to 92 days, but still a very short time on the market as opposed to most other areas (mostly due to the time of year.) The single family home inventory level in the University area was at 30 this past August, compared to 38 in August of 2007, a 21.1% drop. The townhome and condo inventory level is up by 37.8%, going from 42 to 62 active listings!

Now looking at January through August of 2007 compared to January through August of 2008, there have been 18.3% less properties put on the MLS this year. 187 listings have gone active here in 2008. Closed sales unfortunately are also down 29.9%, going from 97 last year to 68 this year. The average sales price has also decreased by 17%. In 2007, the average sales price in the University area was $267,699. Now in 2008, it is $222,316. The percent of original list price received at the time of sale dropped by only 1.9% from 95.2% to 93.4%. There’s some good news for sellers! Lastly, the average days on the market increased, moving from 106 to 136 days.

In conclusion, the University area of Minneapolis, like many parts of the Twin Cities, has seen a sizable decrease in new listings put onto MLS this year. In addition, closed sales are down as well and so is the average sales price. There is not a great inventory of single family homes in this area, but a greater inventory of townhomes and condos makes it great for students and young professionals just getting started with prices that are reasonable! It is truly a great time to buy in the University area!