Twin Cities Duplex Sellers Still In Charge

Remember last spring, when there weren’t enough duplexes, triplexes and four-unit buildings for Minneapolis and St Paul buyers?

Guess what?

This year’s even worse.

May saw 148 active small multifamily listings in the seven-county metro area. This represented a drop of 110 listings from the same month one year ago – or 42.6% in inventory.

Of these active listings, 93 sold. On average, they netted a sales price of $386,953. In May of 2022, 136 listings sold at an average sales price of $431,351. At first glance this may seem alarming. However, it’s important to remember April’s average of $437,352 was the highest on record. And no matter what, the average sales price is greatly impacted by the kind of inventory for sale.

The month’s high seller was a 5 unit listed as a 4 unit in Waconia that traded for $850,000. A six-bedroom, two-bath duplex on Colfax Ave in the East Harriet neighborhood was the month’s high-selling duplex, closing at $849,000.  The value of the month was a four bedroom two bath duplex in St Paul’s Dayton’s Bluff neighborhood, which fetched $120,000 for the seller.

Months supply of inventory is a measure to determine whether we are in a buyer or sellers market. Basically, it is a calculation that determines how many months it would take to sell every property on the market if there were no new duplex, triplex or fourplex listings from this date forward.

A balanced market is when we have a 4-5 month supply. Anything more than that and it is a buyers market. Less is considered a sellers market.

May saw us at a two-month supply.

In other words, sellers are still very much in control.