If the Minneapolis and St. Paul duplex markets were a horse race, the first weeks of May in 2013 and 2014 would be neck and neck headed for the wire.
For the week that ended May 10, 18 Twin Cities duplex, triplex and fourplex sellers accepted offers on their properties. While this is one less than a year ago, the average final list price was $265,167. This is up dramatically from last year’s average sold price of $179,619.
This pricing disparity can’t be attributed to the presence of distressed properties, as just this year just 4 properties involved a bank in the negotiations, compared to 5 last year.
If duplex buyers had bet on increased inventory, it looks like it was a long shot. There were 38 new listings for the first full week of May, down one from last year. What’s different, however, is of those 38, 89.5 percent have equity in their properties. Last year, just 35.9 percent of the sellers could say the same.
Meanwhile, the number of New Listings in the single family home market surged ahead of last year by 6.5 percent. Pending sales faced a tougher race, up just .1 percent over last year. The good news for home buyers is overall Inventory increased 3.5 percent. This may provide a few more choices for frustrated shoppers.
Let’s hope the return of spring makes everyone a winner.