Duplex Sales Pose A Riddle

Hey, I don’t make up the data on Minneapolis and St Paul duplex sales, I only interpret it. And today? Well, I’m befuddled.

During the week ending June 30, 2013, there were 28 duplex, triplex and fourplex owners who received and accepted purchase agreements. Of these, 71.4 percent were equity sellers, who’s final average list price was $156,401.

Here’s where it gets weird. Last year during the same week, there were 21 duplex sellers who accepted offers. And, exactly 71.4 percent of them had equity in their properties.

One would think, with such relative similarity in the data, last year’s average sales price, and this year’s would be comparable. And yet, last year’s average sales price of $186,096, far eclipses the average for the week this year.

Weirder still is just 50 percent of the 26 new listings were brought to the market last year were being offered by traditional sellers. A whopping 82.9 percent of this year’s 41 new listings are not underwater.

Then again, that may be the answer to the drop in average sales price. There were 26 new listings during the week last year. There were 41 this year. That’s a 57.6 percent increase. But certainly, 15 more new listings do not make a market.

The single family home market didn’t seem to share in the market peculiarities. New listings were up 22.8 percent, pending sales up 22.4 percent and inventory remained down 16.8 percent from last year.

For the month of June, the Twin Cities Median Sales Price increased 17.5 percent to $210,000. Days on Market dropped to just 75, and sellers received 97.5 percent of their Original List Price during the month.

I guess we’ll see what the next few weeks bring to determine whether there’s a pattern we should either be alarmed or excited about.