Minneapolis Duplex Market Yet To Make News

Charles S. Pillsbury

There’s a real disconnect between what local and national media reports about the real estate market and what the Realtors at the front lines see.

For example, for the second time this year and third in the last eleven months, the city of Minneapolis has a five-month supply of inventory. There were three additional months in that time with a four-month supply. In other words, in six of the last eleven months we have been in a balanced market, where buyers and sellers are on equal footing, tipping toward a sellers market.

When buyers have more inventory to choose from, their negotiating power increases. That means fewer multiple-offer situations, the return of inspections, and seller concessions like contributing to closing costs. This is born out by the 34 sold listings in Minneapolis in September, which closed at an average price of $400,646.  In September of 2023 the average sales price of $400,508 was nearly the same. However, there were 49 duplex, triplex and fourplex owners who sold.

A Powderhorn Park 5 bedroom, 2 bath fixer duplex in the Powderhorn Park neighborhood was the value-add opportunity of the month closing at $125,500.  An off-market triplex in the East Isles neighborhood was the month’s high seller, trading hands at $530,000.

Properties spent, on average, 30 days on the market before selling; a fact that seems to run contrary to the data around month’s supply of inventory. It suggests listings priced aggressively are selling quickly, while the balance linger. In fact, the cumulative days on market tally of just 33 days suggests the same.

There were 79 new small multifamily investment opportunities that came to the market in September. While this isn’t a huge jump from August’s 66 new listings, or even September of 2023’s 79, the real story is in the total number of active listings. The month saw 162 or 14.9% more multifamily properties for buyers to choose from than 12 months ago, and a 5.2% increase over August.

A three bedroom, two bathroom house conversion in the Webber-Camden neighborhood was the new value-add opportunity, listing at $170,000. A grand, historical Charles S Pillsbury mansion conversion 12 bedroom, 3 bathroom triplex in the city’s Whittier neighborhood is an opportunity to feel like an industrial age tycoon, listing at $2.8 million.

Lower interest rates and more properties to choose from should entice buyers from the sidelines. The most clever among them might even recognize opportunity when they see it.