Did the Pandemic Hurt the Minneapolis Duplex Market?

So how’s the Minneapolis duplex market?

I get this question a lot.

Anecdotally, I can tell you it feels like there’s a shortage of inventory. I’ve been working with several buyers all spring and summer to find the perfect property. Each has submitted offers on several; often for tens of thousands of dollars above the asking price, only to be beat out by one many other offers submitted by other buyers.

But what does the actual data say? A pandemic has to have some impact on the real estate market, right?

Well, in Minneapolis, St Paul, and surrounding suburbs, we have had 12 percent fewer listings to date than the first 7 months of last year.

And I can also tell you that overall, sales are also down 16 percent since last year.

It would stand to reason then that prices have fallen as well, right? Wrong. Last year’s median sales price for Twin Cities 2-4 unit properties was $315,500. As of now, that number in 2020 is $335,000; up nearly 6% since last year.

So what gives?

I think we are experiencing a pandemic-induced delayed start to the spring housing market.

There are currently just 121 active listings in the 9 county metro area. Meanwhile, there are 184 duplexes, triplexes and fourplexes with accepted offers either in some stage of negotiation or headed toward closing.

When those transactions close, I think we will see the true reflection of the shortage of inventory in the duplex market.

Call me if you’re thinking about selling. It’s a great time for your property to stand out in a very small crowd!