Minneapolis Duplex Sales: Facts, Not Feelings
Sometimes I get a feeling that’s just wrong.
Now and then it’s about what I think the winning lottery numbers will be.
At other times my hunches are just dead wrong about what’s going on with the Minneapolis and St Paul duplex markets.
For example, the market feels slower this year. It seems like there’s more inventory that’s taking more time to sell.
And yet, the numbers don’t back that up.
Take for instance the number of active listings. It seems like there’s a lot more and yet, they were actually 24.3% lower in July than one year ago in the seven-county metro area, as well as Minneapolis and St Paul.
The number of new listings on the market was down in Minneapolis and St Paul by 5 from last July, and up 5 when looking at the 7-county metro area as a whole. In other words, we had decreased listings in the suburbs and a few more in the core cities. Though 5 out of 119 calculates to just a difference of 4% in both cases.
There is a more visible change when it comes to the numbers of duplexes, triplexes and fourplexes that sold in July, however. Just 35% of the active listings in Minneapolis and St Paul received offers in July. In the seven counties, 35.9% of small multifamily properties offered for sale were sold. On the surface, this seems alarming. However, when looking back at 2022 numbers for the month, sales are actually up! Last year, just 32.5% of the city listings sold, while 34.8% of the seven-county properties sold.
Needless to say, the months supply of inventory bumped up to 3. That still means it’s a seller’s market. This is the same number as last July; a trend that lasted deep into the fall. In other words, this is relatively normal for this time of year.
The average sales price in the 7-county metro area for the month was $402,178. This is down 2.8% from one year ago. Meanwhile, the average sales price in the two major cites was $389,756. This is down just .003 percent from July 2022.
The moral of the story?
Rely on facts, not feelings. The data says we are still in a good real estate market. And when it comes to picking winning lottery ticket numbers? Your guess is as good as mine.