Twin Cities Duplex Inventory Grows

If it seems like there are more duplexes, triplexes and fourplexes for sale in the Twin Cities, there are.

In fact, May saw 229 active multifamily listings. One year ago during the same month, there were just 166 across the seven-county metro area. There were 158 new listings over the 31 days. This too eclipsed May 2023 which saw just 130 new listings. That may not seem like much, but it does represent an increase of 21.5%. To date 2023 is reminiscent of 2022 when the market saw 763 new listings and 1003 actives over the first four months.

Is that a problem?

Maybe.  There were 84 duplex, triplex and fourplex sales last month. One year ago, there were 94. So, we’re down 10 transactions, and up 28 new listings.

While the average property spent 40 days on the market (dom) before selling, its cumulative days on market (CDOM) – in other words, when we count any cancelled and relisted properties stood at 70. One year ago, DOM was 27 and CDOM was 70.  These measures resulted in a 3 month supply of inventory, compared to 2 months last May. That’s still a seller’s market, but may indicate things are slowing.

On average, duplex sellers achieved an average sales price of $437,755, and 100% of their asking price. Last year, sellers averaged 101.1% of their list price (fewer listings resulted in more bidding wars) and an average sold price of $387,241.

Two properties tied for the honor of the month’s high seller. The first was a contemporary 7 bedroom, 4 bathroom duplex in the Prospect Park- East River Road neighborhood of Minneapolis, which netted the sellers $1.1 million. A 9 bedroom, 8 bathroom fourplex in the Summit-University neighborhood of St Paul also fetched a handsome $1.1 million sales price.

The value-add opportunity of the month came in the form of a 4 bedroom, 2 bathroom house conversion duplex which had been gutted to the studs. This blank slate was in the Folwell neighborhood of Minneapolis and closed at $80,000.

While the market seems to be somewhat different than last year, it continues to be a great time to sell or buy. Buyers may have a few more properties to choose from, while sellers continue for the most part, to be in the driver’s seat.

If you’re thinking of buying or selling, or even would just like an opinion of value, give me a call. I’m always happy to help.