Minneapolis Duplex Market Stats Defy Logic
Did you know that more Minneapolis and St Paul duplexes, triplexes and fourplexes listed for sale during the winter months actually sell than those listed during the spring and summer?
Like me, chances are you probably didn’t. I only discovered it while compiling data for today’s October multifamily market post.
Take, for example, December of 2022. The number of closings that month was equal to 68% of all the active listings. During the same month of 2021, that same ratio was 64.7%. Granted, there are fewer listings over the winter, so those higher percentages are easier to achieve. However, March of 2021 saw 68.7%, which meant properties listed in February did well. April of 2021 saw 81.7%, and May 73.4%. March of 2022 saw 62%, April 60% and May 52.5% sell. And March of 2023 saw 59%, April 56% and May 57%.
Back those solds up to the time they were listed (because it typically takes 45-60 days to fund a loan and go from contract to close), and that means they were all listed either during the dead of winter or early spring.
When we move deeper into spring and summer, those numbers actually drop precipitously by anywhere from 10-30%. That’s because even though duplex buyer activity remains relatively constant year-round, listings increase dramatically in the spring. In other words, there are more properties on the market, giving the same pool of buyers more to choose from.
So what did we see last month?
There were 221 new multifamily listings that came on the market for the month. This was down from September’s 240, which was the highest total since October of 2022. Historically, it seems there is a final push of new inventory every fall, before the snow falls.
Ironically, even though to a certain extent it seems the market has slowed, there were actually 1962 showings on multifamily properties in the 7 county metro area. This is just 220 fewer than one year ago. If the showing data is narrowed to just Minneapolis and St Paul, however, there was just one showing less during the month than one year ago!
The average sales price for a multifamily property in Minneapolis or St Paul was $402,962. This compares favorably to last year’s $408,091. Metrowide, the average was $416,420, up from last year’s $402,332.
Just as it seems to do every fall, the month’s supply of inventory remained at 3. This figure is up one month from summer; a trend we see almost annually. Of course, both numbers continue to reflect a seller’s market.
Contrary to the typical fall pattern, however, we actually saw the average number of days a metro-wide property is on the market drop from 37 in September to 31 in October. Last year that number stood at 39.
Remember, if you’re thinking about selling, it is nearly impossible to time the market. However, if you’d like to have less competition, so that yours can stand out, now may the perfect time of year to do just that!