Twin Cities Duplex Market Changes Again

The good news in the Twin Cities duplex market is October’s median sales price of $439,000 was the highest on record. Better yet, the average sales price was higher still at $449,843.

This was the highest median sales price on record.

Of course, both numbers were influenced by the sale of a $1.2 million, 4 bedroom, 3 bathroom completely rehabbed duplex on the shores of Lake Minnetonka in Spring Lake Park. Even the month’s best value-add opportunity, a 3 bedroom, 2 bathroom house conversion in Minneapolis’ Webber-Camden neighborhood with significant upper level ceiling damage due to a roof leak traded hands at a healthy $171,000.

In all, 67 duplexes, triplexes and fourplexes in the seven-county metro area traded hands last month. Most (31) were in the city of Minneapolis, with St Paul contributing another 15 sales. On average, these sellers obtained prices that were 98.7% of their original list price, with their properties spending  41 active days on the market before selling. This figure swelled to 54 when considering cumulative days on the market. In other words, a couple of them had been cancelled, then relisted before ultimately selling.

October saw 115 new investment property opportunities come on the market. The majority (55) were in Minneapolis, with, once again, St Paul finishing second with 35. The month’s new rehab opportunity was a 2 bedroom, 2 bath house conversion listed at $149,000. a 9 bedroom, 5 bathroom duplex in the Kenwood neighborhood topped the new listings at $1.1 million.

In all, there were 287 active listings in the 7 county metro area in October. That’s down slightly from September, which at 315 active listings was the year’s high water mark to date. However, it also represents a 21.1% increase over the same month one year ago. This contributed to a four month supply of inventory, which was down from September’s 5. Both figures represent a balanced market; where buyers and sellers have equal leverage when it comes to negotiations.

This shift toward balance helps explain the 184 listings that expired without selling. That too is the high mark for the year, and a 9.5% increase over the same figure one year ago.

Things are changing. Then again, they always do.