North Minneapolis Investment Property

North Minneapolis has become a hot investor market with all of the foreclosures in this area. Let’s look at real estate numbers for that neighborhood of Minneapolis. Comparing November of 2008 to November of 2007, there have been 26.7% less homes put onto the market. Closed sales this November are up 229.4% with 56 properties closing. The average sales price is down 37.8%, going from $83,993 to $52,265. The average days on market in North Minneapolis are down 25.6%, from 186 days last November to 138 days this November. There were 284 active single family homes for sale in November of 2008, compared to 434 actives in November of 2007.

When comparing January through November 2007 to January through November 2009, closed sales are up by 100.9%, from 343 sales in 2007 to 689 closings in 2008. The average sales price declined by 40.2%, going from $102,885 in 2007 all the way down to $61,541 in 2008. Average days on the market are down 13.%, from 171  days to 148 days this year. The percent of original list price received at the time of sale remains constant at 85.4% this year (was 84.8% last year so certainly getting a bit better!).

North Minneapolis in the past has not had the best reputation. However, investors are buying a ton of foreclosures in the area, rehabbing them, and renting or reselling them. As a result, the closed sales numbers are so much higher this year. Also, the fact that sales prices are way down means that the investor buyer is really having a “hey day” right now.  Many of the homes require so much work that the average buyer is moving on to other neighborhoods and other homes in Minneapolis. One last thought: with fewer homes coming onto the market, that could mean that there are fewer foreclosures as time goes on. This all certainly bodes well for North Minneapolis

As investors, be sure to check out our monthly investment property seminars offered. All of our seminars are free of charge, and we explore really any and all sorts of investment property topics.

 

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