St Paul Duplex Market Hits Midnight

St Paul was the belle of the Twin Cities duplex market ball in May with just a 2 month supply of inventory. Last month, Cinderella’s coach turned back into a pumpkin, as the month’s inventory supply increased to 4.

As we know, months supply of inventory is an estimate of how long it would take to run out of properties to sell if no new listings came on the market after the last day of the month. A 4-5 month supply is considered a balanced market, where buyers and sellers have equal negotiating power.

There were 21 closed duplex, triplex and fourplex sales in St Paul in June. On average, these were on the market just 9 days and earned an average sales price of $391,748. There were 32 multifamily properties that sold in June of 2023. However, the average sales price was $311,755.

Top seller for the month was a 7 bedroom, 3 bathroom Craftsman era duplex in the Summit Hill neighborhood, which fetched $806,200 in multiple offers. A 4 bedroom, 2 bathroom house conversion rehab opportunity in the Merriam Park/Lexington-Hamline neighborhood will earn somebody money after closing at $200,000. A whopping 23.8 percent of the sold properties were in the Lexington-Hamline community in June.

Of course, this data contradicts the idea of a balanced market, as one would think properties would linger on the market a bit longer if it were truly balanced.

St Paul multifamily owners put 51 new investment property opportunities on the market in June. This was an 18.6% increase over June of last year and a 24.4% rise from May.  In all, there were 76 active listings on the market in the month. The Payne-Phalen neighborhood brought 13 new listings, followed by Dayton’s Bluff with 9.

A fourplex with a whopping 14 bedrooms and 8 bathrooms in the Macalaster-Groveland neighborhood became available for $1.1 million, while a 4 bedroom, 2 bathroom house conversion duplex in the Thomas-Dale area came on the market at $149,900and closed 8 days later at $163,000.

Of note, there were 32 listings that went off the market without selling in June; the second-highest total of the year to date and 33.3% higher than June of 2023.

Next month we’ll see if this is a trend or another fairy tale.