Minneapolis Duplex Sales Make You Say “Whoa!”

Whoa is a word I use often in life. Usually, it’s something I say to a horse. However, this morning as I was calculating Minneapolis duplex market numbers, I said it out loud.

Here’s why. There are two ways to calculate the number of days a Minneapolis duplex is on the market before selling. The first is Days On Market (DOM). This is the number of days that elapse between the time a property is listed and it is sold.

The second way to calculate days on the market is Cumulative Days On Market (CDOM). That is the time that has elapsed between when the duplex was originally listed and when it ultimately closed.  Sometimes, if a property isn’t getting much traffic or hasn’t sold, the listing agent and seller will cancel the listing, then relist the property at a new price and/or new photography a day later.  This helps reset the MLS’ perception of the property, and it is subsequently pushed back out to various web sites and through automatic emails as a “new” listing.

In March, there were 66 new listings that hit the market. I haven’t yet come up with an efficient way to ascertain which of these were relists. In all, Minneapolis saw 102 active listings that hit the market. The Whittier neighborhood made the biggest contribution to inventory, with 9 new listings. The Seward and Holland neighborhoods tied for second place, adding four each to the pool.

The average number of days a Minneapolis duplex, triplex or fourplex spent on the market was 42.  However, the CDOM was 121. That is the highest number in the last two years. In other words, it would stand to reason that a) properties are taking longer to sell and b) we’re shifting toward a buyers market.

The latter concern, was then dispelled as the months of inventory available to Minneapolis multifamily buyers ticked down to 3 from January and February’s 4.  So we seem to still be in a seller’s market.

There are other signs that things are changing. In March, the average close price on a muti-family property was 97.8% of its original asking price. While this is still very strong, it was also the lowest percentage since January of 2023. Nonetheless, the average sales price of the 36 properties that sold in the city was $417,899 in Minneapolis for the month; which is a tick higher than February’s $415,872.

The value of the month was a fire-ravaged fourplex in the Folwell neighborhood, that closed at $95,000. The high seller was a Central neighborhood fourplex with 11 bedrooms and 4 baths that closed at $765,000. A 6 bedroom, 4 bathroom East Harriet duplex was the high selling duplex at $740,000. The duplex value opportunity for the month is in the Jordan neighborhood, where this 5 bedroom, 2 bath property is listed at $195,700.

If you’re thinking of buying or selling or investing in Minneapolis, St Paul or the surrounding areas, give me a call. I’d be happy to help.