The Minneapolis duplex market for the week ending September 10, 2011, was a like one of those puzzles where you see two seemingly identical pictures and are supposed to spot the differences between them.
Sometimes you have to look closely.
For example, 15 duplex, triplex or four plex owners accepted purchase agreements over the Labor Day week.
Of these, six, or 40 percent, actually will put money in their pockets when they hand keys over to the buyer.
Last year, 15 small Minneapolis and St Paul multi famiy investment property owners also accepted offers on their properties. But just three, or 20 percent of those folks were going to walk away from the closing with cash.
On average, those 2010 duplex sellers sold for a price of $96,293. The 2011 sellers, on the other hand, saw their duplexes pend at an average list price of $155,131. (Remember, in this market, sold prices tend to be a little less than list prices.)
The week saw inventory continue to shrink, as there were just 22 duplexes new to the market, compared with last year’s 33.
Of those new opportunities, 45.5 percent of the 2011 week’s inventory is being offered by equity sellers. This is down slightly from last year’s 48.5 percent.
The single family market saw a soaring increase in buyer activity for the week, up 53 percent from 2010. In fact, over the last three months, buyer activity in that market segment is up an average of 41.7 percent.
Shrinking inventory also continued to be the trend, with 21.2 percent fewer new listings hitting the market than did last year.
Both the Minneapolis duplex and single family home markets seem to be changing, but you have to look carefully.