Minneapolis Duplexes Continue To Be Scarce

Minneapolis Duplex for saleAs of today, there are 209 active duplex, triplex and fourplex properties actively listed on the Minneapolis and St Paul MLS within the seven county metro area.

To put things in perspective, in the peak years of the market, there was at or above 1000 properties available for sale.

In other words, there is a severe shortage of investment properties available for buyers.

This shortage may be the result of several factors; high rents, low vacancy rates and the sudden, dramatic absence of distressed properties on the market.

In fact, for the week ending February 14, 2015, 100 percent of the 13 listed duplexes that either sold or whose sellers accepted offers did not involve negotiations with a bank whatsoever. This resulted in an average off-market list price of $210,823.

Last year, 16 properties went off the market during the same week. Just 62.5 percent of these belonged to traditional equity sellers. Oddly, the average sold price for these properties was $216,050; higher than this year’s pended price. It’s probably simply a result of the collection of properties that were available each week as opposed to an actual market reflection.

While the difference between the number of new listings coming on the mark was just one; 17 last year and 16 this, it’s interesting to note that 87.5 of this year’s are being sold by traditional sellers. Last year, 76.5 percent were, meaning banks were bigger contributors to inventory.

Over in the single family market, the number of New Listings was up 12.1 percent over last year. Pending sales were also up 15.6 percent. This meant the total amount of available inventory was down 3.7 percent.

If you’re thinking of selling, give me a call. You may not have a great deal of competition.