Minneapolis Duplex Listings May Be A Sign Of Things To Come

Minneapolis has more duplexes, triplexes and fourplexes than any other city in the metro. As a result, more are listed, bought and sold every month there than any other city, so it makes sense to look to its data for a sense of where the market is and where it might be going.

In January, the city saw 46 new listings. That may not sound like much in a city of 425,000 people. However, that number is 68.2% over December, and a 31.4% increase over January of 2024.

These new opportunities contributed toward a supply of 109 active listings on the market in January, just one less than the same month last year.

That number may increase in February, in January just 28 small multifamily properties sold. This was a 60.7% decline in closed transactions from December. While a holiday slowdown is normal, this was the greatest month-over-month drop in 5 years. It would make sense, then, that with fewer sales and more listings, we would see the months supply rise. Sure enough, we saw a 4-month supply, meaning if we had no new listings from this day forward, we would have nothing to sell in 4 months given our current sales rate. While technically still a seller’s market, this is nearing a balanced market, where sellers and buyers are on equal footing.

The Whittier neighborhood contributed 5 new listings to the market, followed by Hawthorne with 4. A burned out 2 bedroom, 2 bathroom house conversion in the Folwell neighborhood presented a heavy rehab opportunity at $65,000. A 9 bedroom, 4 bathroom traditional duplex listing in the Holland neighborhood topped the new opportunities at $849,000.

Meanwhile, the 28 sold properties came from entirely different neighborhoods. Windom Park saw 3 trade hands, with Marshall Terrace, Willard-Hay and Longfellow adding 2 each. The market topper was a 14 bedroom, 6 bathroom triplex in the Como neighborhood that closed at $950,000.  a 6 bedroom, 2 bathroom traditional duplex in the Willard Hay neighborhood should generate good cash flow for its new owner after closing at $280,000.

The Minneapolis housing providers who sold in January obtained on average, prices that were 97.4% of their original asking price. The 28 sellers achieved an average sales price of $464,041; the third highest of the last 12 months.  Properties spent an average of 56 days on market before selling. When including those that were cancelled and relisted, that number rose to 79.

As we head into spring, it’s important to remember Minneapolis duplex, triplex and fourplex inventory tends to rise. And while closed sales totals tend to dip in January and February, small multifamily property sales are relatively constant year round.

If you’re thinking of selling or would just like an idea of value, give me a call. I’d be happy to help you wherever your property may be located in the metro area.