Duplex Sellers Love Shortages

Save WaterWant to know how short we are on duplexes for people to buy?

According to the Minneapolis Area Association of Realtors, in 2012 there were 1212 duplexes sold in the metro area. On average, they sold for $127,950.

Compare that to 2009, when there were 2064 duplexes, triplexes and four unit buildings sold in the Twin Cities at an average price of $83,900.

That represents a 41 percent decline in inventory in just two years.

While we haven’t seen the kind of influx of new listings to the marketplace we so desperately need, new listings were up 20.8 percent for the week ending January 12 over last year.

While 44.8 percent of these duplexes for sale were brought to the market by traditional sellers, one year ago just 29.2 percent were.

Meanwhile, 35.7 percent of the duplex owners who accepted offers on their properties actually had equity in them.  In 2012, just seven percent of the 14 owners who accepted offers could say the same.

As always, the presence of traditional sellers usually translates into higher average sales prices, and it was true here, with the 2013 listings leaving the market at an average final list price of $121,121, compared with the 2012 solds, which averaged $82,261.

The single family home market continued to be a sellers dream, with just 2.9 months of inventory on the shelves. (A balanced market is when there are 5-6 months of inventory.)

Pending sales increased for the week 4.3 percent, while new listings decreased eight percent. Year over year, there are 31.7 percent fewer homes for people to buy.

It continues to be a great time to be a Minneapolis duplex seller.