Downtown Minneapolis continues to showcase its vibrant and dynamic real estate market, standing out significantly against broader Twin Cities trends.
View downtown showcased and the Twin Cities Market highlighted in they key charts below from July 2024 data compared to July 2023 and July 2022:
New Listings: New listings went up by 5.1% to 83 in downtown. This increase in inventory provides more options for buyers, making it easier to find a property that meets their needs. Buyers can benefit from the greater variety of homes on the market, while sellers might face more competition but can still capitalize on the high demand and the quick pace of sales, as shown below.
Closed Sales: Closed sales increased by 7.7% to 56 in downtown. This rise in transactions indicates a thriving market with strong interest for desirable, well priced properties.
Median Days on Market: The median days on market in downtown decreased by over 31%, continuing the trend from June 2024. Desirable homes are selling faster, indicating a high demand and a competitive market. Buyers need to be prepared to make swift offers and decisions. For sellers, the reduced time on market means quicker transactions and less time waiting for the right buyer, reducing holding costs and expediting the sales process.
In contrast, the Twin Cities market saw a median days on market increase by 33% to 16 days, signaling a slowdown there.
Average Sales Price: The average sales price in downtown rose by 9.7% to $526,643, compared to a modest 2% increase to $460,723 in the Twin Cities. For buyers, this means rising costs for properties, necessitating a larger budget. Sellers can benefit from the higher average prices, potentially achieving greater returns on their investments.
Median Sales Price: The median sales price in downtown surged by 17.7% to $421,500, while the Twin Cities experienced a 2.7% rise to $385,000. Buyers should be prepared for higher price points, reflecting the increased value and desirability of downtown properties. For sellers, this substantial price increase underscores a strong market.
Average Price per Sq Ft: The average price per square foot in downtown climbed by nearly 6% to $349, whereas the Twin Cities saw a 1.4% rise to $215. This higher price per square foot in downtown signifies premium property valuation, offering buyers a solid investment in a high-demand area. Sellers can leverage this premium to justify higher asking prices.
Median Price per Sq Ft: The median price per square foot followed the average in downtown, and increased by almost 6% to $336. In contrast, the Twin Cities' median price per square foot rose 2% to $202. The consistency in downtown’s price per square foot indicates stable and appreciating property values, giving buyers confidence in the market’s strength and providing sellers with evidence of solid market performance to support their pricing strategies.
Market Insights:
- For Buyers: Downtown Minneapolis is a highly competitive market with rising prices and quick sales. The increased number of desirable listings offers more choices, but the high demand requires buyers to act fast and be prepared for higher costs. Staying informed about market trends and being ready to make swift decisions are crucial.
- For Sellers: This is an excellent time to sell in downtown Minneapolis. Significant price increases and faster sales indicate a strong market where strategic pricing can yield substantial returns. Sellers should capitalize on the high demand and consider listing their properties sooner rather than later to take advantage of the favorable conditions.
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Data retrieved from the NorthStarMLS via map of Downtown Minneapolis Neighborhoods including: Loring Park, Elliot Park, Downtown West, Central Minneapolis, North Loop, East Town, Mill District, Nicollet Island, St. Anthony West, and Marcy-Holmes.
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