There’s a nip in the air, the leaves have begun to change, the Vikings still have a winning record and you’d really like to sell your Minneapolis duplex.
And because you’ve lived here a while, if not your whole life, you know snow is just around the corner.
Is it even worth it to try to sell your duplex now? Or should you just wait until spring?
After all, who wants to move in the ice and snow, right?
Lots of people. In fact, they’re looking — and starting to look, right now.
For the last two to three years, we’ve had more Minneapolis and St Paul duplex buyers in the market than we’ve had sellers. That’s due largely to low vacancy rates, which have resulted in higher rent and more cash flow for most duplex owners.
Because the supply of duplexes for sale is lower than demand, prices have risen. This has largely not deterred buyers, as historically low interest rates, coupled with higher rent, has meant the properties were still affordable and/or made financial sense.
As more and more duplex owners hear prices are up, however, the amount of inventory has inched up ever so slightly. Come spring, this trickle may become a deluge.
With more inventory, duplex sellers will face more competition. Buyers won’t feel quite the same sense of urgency to pounce on a great listing, as they become confident another one will come along.
Worse yet, if interest rates go up as little as one percent, prices will change. That’s because a one percent raise in interest on a $300,000 mortgage means an increase in payments of $3000/year or $250 a month. That can take a property from a positive cash flow to a negative, or from affordable to expensive in an instant.
Of course, none of us can know the future. And the more certain we are of things as they are, the more likely they are to change.
If you’ve been thinking about selling your Minneapolis or St Paul duplex, now is a great time to do so. Feel free to email or give me a call to talk about it.