There are two things you can’t seem to avoid hearing about in the news these days; politics and real estate.
And as of late, neither topic has radiated a great deal of hope.
It’s important to remember during these forecasts of doom and gloom that unlike politics, all real estate is local. There are no two identical markets in the country. What’s happening in New York or Los Angeles may or may not be happening in Minneapolis or St Paul.
So what is happening in the Twin Cities duplex market?
Truth be told, the jump in mortgage interest rates from 2.88 on July 15, 2021 to 5.51 on July 14 of this year served to create doubt in many would-be duplex buyers. The good news is rates have since dropped slightly to 4.99%.
How has this impacted the Twin Cities duplex market?
Well, July saw the seven county metro area record sales of 104 duplexes, triplexes and fourplexes. Like last month, there were 278 active listings on the Multiple Listing Service (MLS). In other words, 37.4% of active listings sold. Exactly one year ago there were 265 active listings during the same month and 136 sold for a ratio of 51.3% of the properties selling.
The average sales price in the 7 county metro area for the month was $405,569. This price was roughly the same as the $405,822 average in July of 2021. When we narrow down the data to just properties in Minneapolis and St Paul, we find an average sales price in July of $391,187; down slightly from the $400,600 posted on year ago.
The month’s high seller was a duplex across the street from Lake Minnetonka in Excelsior, which traded in multiple offers for $1,250,000. As the property is on the list of Excelsior Historic Preservation Landmarks, it is unlikely it will be torn down. The least expensive Twin Cities duplex sale was in the Powderhorn neighborhood of south Minneapolis which recorded a sales price of $40,000.
Overall, the Twin Cities appears to be trending toward a more balanced duplex market, with buyers and sellers on more equal footing. While last summer there was a two month supply of multi family properties for sale in the Twin Cites, this year July saw a three month supply. Anything less than a 4-6 month supply is considered a seller’s market. Over that amount is considered a market in which buyers have the upper hand.
The Twin Cities typically experiences a bit of a jump in real estate sales in the fall. It might have something to do with impending snow.
Like I said, all real estate is local.
If you would like a more specific breakdown of how your property or neighborhood is doing in a changing real estate market, give me a call. I am always glad to help.