June Sets Average Minneapolis Duplex Sales Price Record

Even with June’s interest rates hovering above 7% in June, the Twin Cities recorded the highest recorded average sales price for 2-4 unit multifamily properties at $451,898.98.

Does this mean an expensive outlier drove the average up?

There were 89 duplexes, triplexes, and fourplexes sold in June. Of these, 15 traded hands for more than $600,000, with the chart-topper being a 1914-built 7 bedroom,  3 bath East Isles duplex.

Does this mean the lower price points in the market were actually higher?  The value-add-opportunity of the month was  a 4 bedroom, 3 bath triplex in the Dayton’s Bluff neighborhood of St Paul. That seems like a deal for an occupied triplex.

In all, the city of Minneapolis contributed the most transactions to the monthly total with 44 properties closed. St Paul added 20, while Hastings lead the suburbs with 4.

June saw 130 new duplex, triplex and fourplex listings come on the market in the 7-county metro area. The new listing total was down 21.5% from May, and 27.7% lower than June of last year. However, the 230 total active listings for the month was 9% greater than one year ago. As you might recall, May’s total active inventory was also up 45.2% year-over-year.

Minneapolis brought the most new listings to the market with 71, St Paul added 50, while South St Paul and Brooklyn Park lead the suburbs with three each.

Increased inventory may suggest properties are spending more time on the market before selling or expiring. However, this wasn’t the case in June either. Metro-wide, multifamily properties spent just 26 days on the market. Cumulative Days on Market were just one week longer, at 33.

In a further contradiction, there was a 3 month supply of multifamily inventory in June. In other words, if there were no new listings from today forward, we would be “sold out” of duplexes, triplexes and fourplexes in 90 days. That is still a seller’s market. And yet, there were 122 expired listings in June; properties that didn’t sell and were withdrawn from the market. This was the first triple digit total expired listing total since December.

Perhaps the “why” of all these contradictions will become more clear as we look more closely at Minneapolis, St Paul and the suburbs over the next few weeks.