Twin Cities Duplex Market Makes First Change In A Decade

There was at least a four-month supply of duplex, triplex and fourplexes for sale in the Twin Cites 41.7% of last year.

That was the first time that’s been the case in a decade.

Months supply of inventory is the harbinger of a seller’s or buyer’s market. Depending on location, a seller’s market occurs when there is less than a 4 or 5-month supply. Balanced is 5-6 months of inventory; a buyer’s market is anything more.

While February’s 4-month supply technically represents something between a seller’s and balanced market,  the persistence of the number over the preceding 12 months may signal a change.

That doesn’t mean multifamily properties aren’t selling. In fact, 57 found new owners last month. That’s an 11.7% increase over one year ago. However, the average sales price of $383,930 was the lowest since February of 2023. Remember, one month does not make a pattern. This lower average is a result of properties available to be purchased. If and when we have several months of this, then it’s a trend.

The month’s high seller was found in the Powderhorn Park neighborhood of Minneapolis, where a 13 bedroom, 4 bathroom fourplex closed at $675,00. Minneapolis also provided a fire-ravaged 2 bedroom, 2 bathroom rehab opportunity in the Folwell neighborhood, which sold for $65,000.

As the informal start to the spring real estate market, February always sees the number of new listings grow. Last month was no exception, with 102 new property listings, compared to just 84 in January. This is also a 4% increase over February 2024. Half of the new listings came in the city of Minneapolis, with St Paul adding another 26.

A partially rehabbed four bedroom, 2 bathroom brick Victorian house conversion in the Thomas-Dale neighborhood offers a value-add opportunity at $205,000. An 8 bedroom, 5 bathroom duplex with a 4 car garage in Minneapolis’ East Isles neighborhood offers a turn-key opportunity for an owner occupant at $1.495 million.

Balanced markets never last long. Usually they are a relatively short, transitional period, quickly ushering in either a buyer or seller’s market. Warmer weather and a calendar page that reads March will quickly tell us which way things are headed.