Twin Cities Suburbs Stay Strong

With an average sold price of $458,634 in August, the suburbs surrounding Minneapolis and St Paul continue to be a great place to own rental property.

Sixteen duplex, triplex, and fourplex owners sold during the month.  The month’s top seller was an Inver Grove Heights 8 bedroom, 4 bathroom fourplex that generated multiple offers and closed at $635,000; $15,000 more than the asking price. The value-of-the-month was a 4 bedroom, 2 bathroom Waconia duplex that closed at $321,750. The sold listings managed to average offers 100% of the price they were asking.

With a 3 month supply of inventory, the suburbs and surrounding 7 county area remain in a seller’s market. The sold listings spent an average of 31 days on the market before selling, with the time swelling to 46 days for those that had canceled and relisted.

There were 26 new listings during the month. The opportunity-of-the-month was a 4 bedroom, 2 bathroom side-by-side duplex that was listed at $320,000 and is currently pending at $289,900. An 11 bedroom, 6 bathroom triplex in Coon Rapids topped the market at $850,000 and is currently sold subject to inspection.

While it may be easy to conclude the suburbs are a better place to buy and sell rental property than the urban core, bear in mind there just aren’t as many properties to choose from. With fewer options, demand exceeds supply, and what little inventory there is doesn’t linger. If there were more options, the suburban market may tell a different story.