Signs Of Change In Twin Cities Duplex Market

Twin Cities duplex, triplex and fourplex buyers got some good news in May. There were more active small multifamily listings at 332 than any other month since November, 2015.

Of these, 168 were new to the market. As is most often the case, the majority came from Minneapolis at 85, with St Paul contributing another 47.

A condemned and boarded-up 8 bedroom, 3 bathroom duplex in the Near North neighborhood of Minneapolis was the best month’s best shot at sweat equity at $169,000. A rare 7 bedroom 4 bathroom sided by side in the city’s Fulton neighborhood represented a Lake Harriet adjacent opportunity at $859,000.

May saw 65 properties change hands throughout the 7-county metro area. Twenty-six of these were in Minneapolis, while St Paul sellers added 20. The value-add opportunity of the month was found in the Hamline-Midway neighborhood where a 4 bedroom,  bathroom up/down in need of a cleanout earned the seller $165,000. A new build 8 bedroom, 4 bathroom side by side in Crystal was the market topper at $695,000.

Sellers spent an average of 35 days on the market before selling. When including those listings that were cancelled then put back on the market, that number swelled to 55.  That’s just over two weeks more than the 40 days it took one year ago.

On average, properties sold for $410,136 in May; the lowest average since April 2021. This figure was, on average, 99.1% of the original asking price.  One year ago sellers averaged 100%.

After more than a decade of it being a seller’s market, the current 5 month supply of inventory. A real estate market is considered balanced, where buyers and sellers have negotiating leverage at 5-6 months. This is the third time since September the Twin Cities small multifamily market has entered this territory.

It has been a seller’s market for a decade.