This week’s market statistics for Minneapolis duplex sales go a long way toward demonstrating what’s different about duplexes than other kinds of investment properties.
What is that?
A large portion of the Minneapolis and St Paul duplex market consists of first time home buyers who intend to live in one of the units.
And because of them, and the loss of last year’s first time home buyer tax credit, the Minneapolis duplex market was decidedly different the week ending March 12 than it was for the same week one year ago.
New listings were down 48 percent, as last year saw 54 owners try to sell before the end of the tax credit. This year, just 22 wanted to part ways with their multi-family properties.
Pended sales were down 15 percent.
The average price a property left the market dropped $27,260, which might not seem like much until you know that last year’s average sold price for the week was just $123,500.
This is once again in step with the impact the tax credit had on the single family home market, where the week saw 20.9 percent fewer pending sales, and 31.1 percent less new listings.
As there aren’t even whispers of reinstating any kind of tax credit, this may be the new normal.