Is The Twin Cities Duplex Market Changing?

While the Twin Cities and surrounding area duplex, triplex and fourplex market is changing, August’s numbers don’t go all the way toward turning a feeling into a fact.

There are some indications the seven-county metro market is changing. For example, we currently have a 4-month supply of inventory. While this is still considered a seller’s market, it is dangerously close to a balanced market, which is a 5-6 month supply. This is the second time this year we’ve hit 4; the other happened in February.

Twin Cities duplex sellers averaged closed prices at 100% of their original asking price. These sales fetched an average closed price of $421,066. The value of the month was a cute 3 bedroom/2 bathroom house conversion in the Payne-Phalen neighborhood of St Paul at $175,000. The top seller of the month was a 2016-built 14 bedroom, 16 bathroom fourplex in the Lowry Hill East neighborhood, which saw the sellers pocket a tidy $1,340,000.

On average, these listings spent just 33 days on the market before selling, and a cumulative days on market average of 47 days. Both figures are improvements over July’s 39 and 47, but up slightly from August of 2023 when duplexes spent 27 DOM and 44 CDOM.

It’s important to remember closed sales tend to reflect market activity from 30, 45 or even 60 days prior, as lenders typically need that lead time to finalize a mortgage.

So that may explain some of the disconnect between the healthy average sales price and the 132 listings that left the market without selling; the highest total of any month since December.

There were also 273 active listings on the market in August; more than any month since September, 2022. Meanwhile, 128 new property listings came on the market for buyers to choose from; the fewest since April.

The Federal Reserve is widely expected to reduce interest rates .25 percent when they meet on 17th and 18th. While this expected rate cut has already been baked into most lenders mortgage rates, it nonetheless may encourage duplex buyers who’ve been sitting on the sidelines to make a move.

Stay tuned.