If there’s news to report about the Minneapolis and St Paul duplex market for the week ending September 7, 2013, it actually isn’t about investment properties…
It’s about single family home sales.
And the news is, the number of pending home sales for the week dropped 4.5 percent, which represents the first drop in year-over-year sales in many, many months.
Whether this is a reaction to climbing interest rates, or simply an unusual blip on the radar is yet to be seen.
Minneapolis duplex sales, however, saw a year-over-year increase. There were 18 duplex, triplex and fourplex owners who received and accepted offers during the week; 72.2 percent of these have equity in their properties. On average, these listings left the market at a final list price of $207,978.
Last year during the first week of September, there were just 12 Twin Cities duplex sellers who accepted offers. Even though 83.3 percent of them were equity sellers, their properties averaged a final sales price of just $164,116.7.
However, this rise in average sales price continues to largely be a function of limited inventory. There were 31 new listings for the week in 2012, 48.4 of which belonged to equity sellers. This year, there were just 18 new duplex listings, with 72.2 percent coming from traditional sellers.
With the Federal Reserve’s announcement today of their intention to keep interest rates low, it will be interesting to see what the fall market brings.