As we reflect on the past year, the real estate market in the North Loop neighborhood of Minneapolis has seen some changes over the last year. Let's take a closer look at the key metrics from June 2022 to June 2023 and what you need to know if you are a seller or a buyer.

Important Data Points

New Listings: Over the past year, new listings in the North Loop have decreased by 19.4%, from 227 to 183. This reduction in new listings suggests a tightening of the market, with fewer properties available for potential buyers. 

Closed Sales: Closed sales have seen a decrease, dropping by 29.7% from 182 to 128. This decline could be a result of the reduced inventory, with fewer properties available to close on.

Median Sales Price: Despite the decrease in new listings and closed sales, the median sales price has seen a slight increase of 2.9%, moving from $392,500 to $403,700. This could be a result of the limited supply driving up prices.

Average Sales Price: The average sales price has increased, albeit slightly, by 1.0% from $475,975 to $480,507. This further supports the trend of rising prices in the North Loop neighborhood.

Price Per Square Foot: The price per square foot has seen a small decrease of 2.3%, from $354 to $346. This could suggest that while prices are generally increasing, buyers are getting slightly more space for their money. This figured varies depending on the building/property. 

Percent of Original List Price Received: Sellers in the North Loop are receiving slightly less of their original list price compared to the previous year, with a decrease of 1.6% from 97.8% to 96.2%. This could indicate that buyers are negotiating more aggressively on price.

Days on Market Until Sale: The average days on market until sale has increased by 41.4%, from 58 to 82 days. This means properties are taking much longer to sell. 

Data provided by the Minneapolis Association of Realtors

What Sellers Need to Know

In today's competitive real estate market, sellers must be proactive and strategic to ensure their property stands out. Despite the decrease in inventory, buyers still have the upper hand unless your property distinguishes itself from the rest. The North Loop neighborhood has seen a 41.4% increase in the average days on the market until sale, making it more important than ever to prepare your home for the market properly before you go live. The first three weeks to a month of any listing is the most important time. Once your listing has been on the market for more than a month, the chances of receiving the full price dramatically decrease. 

Here are five tips for sellers considering putting their property on the market today:

  1. Proper Staging: A well-staged home can make a significant difference in how quickly it sells and the price it fetches. Consider hiring a professional stager or, at the very least, decluttering, depersonalizing, and arranging furniture to showcase your home's best features.
  2. Deep Clean: First impressions matter. A deep clean before listing can make your home shine and show potential buyers that the property has been well-maintained.
  3. Pricing Strategy: With median and average sales prices holding relatively strong in the North Loop, it's crucial to price your home correctly from the start. Work with a knowledgeable real estate agent who understands the local market to set a competitive price. 
  4. High-Quality Photos and Virtual Tours: In today's digital age, most buyers will see your home online before they see it in person. Make sure your agent uses professional photos, and consider adding a virtual tour to make your listing stand out, which can be done with a short video on Zillow and social media. 
  5. Be Prepared for Negotiations: Despite the strong prices, the North Loop market has seen a slight decrease in the percent of the original list price received. Be prepared for negotiations and have a strategy in place for handling offers.

Remember, even in a market with decreased inventory, preparation is key. By taking these steps, you can help ensure your property stands out, sells quickly, and commands a strong price.

What Buyers Need to Know

Navigating the real estate market as a buyer can be a complex process, particularly in a neighborhood like North Loop. Despite decreased inventory, which typically indicates a seller's market, the North Loop has seen an increase in the average days on the market. This shift is providing buyers with a unique advantage in negotiations, even in a market that has seen a decrease in supply. 

Here are five tips for those considering buying a home in the North Loop:

  1. Patience is Key: With the average days on the market increasing, buyers may have more time to make decisions. Don't feel pressured to make an offer on the first property you see. Take your time to explore the market and find a home that truly meets your needs.
  2. Leverage the Longer Sales Cycle: The longer a property is on the market, the more likely a seller will negotiate. Use this to your advantage when making an offer.
  3. Secure Financing Early: In today's competitive market, having your financing in order can make your offer more attractive to sellers. Try to get pre-approved for a mortgage before you start your home search that way you are prepared when the right property comes up. 
  4. Work with a Local Real Estate Agent: A local agent will have a deep understanding of the North Loop market and can provide valuable insights and advice. They can also help you navigate the negotiation process. In a neighborhood like the North Loop, many sellers are waiting to list publicly, so the right agents will have off-market opportunities to show you. 
  5. Inspect Thoroughly: With homes staying on the market longer, it's crucial to conduct a thorough home inspection to avoid any potential issues down the line. Don't skip this step in the buying process.

The North Loop neighborhood has seen a decrease in new listings and closed sales over the past year, but prices have generally increased. The market has tightened, and properties are taking longer to sell. This could present opportunities for both buyers and sellers, depending on their individual circumstances and goals. As always, understanding the local market trends is key to making informed real estate decisions. 

Posted by Isaac Kuehn on


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