Minneapolis Duplex Buyers Take The Wheel

For the first time in well over a decade, a 7 month supply of inventory indicated buyers were in the driver’s seat in May’s Minneapolis duplex, triplex and fourplex market. A real estate market favors buyers whenever there is more than a 6 month supply.

This was driven in part by 191 active listings for the month. This was the most in the city of Minneapolis since January of 2015. It also represents a 12.4% increase over April’s total, and a 32.6% rise from one year ago.

The city’s 85 new listings in May gave buyers more opportunities than any month since July, 2023. While this may sound alarming, it was only one more listing year over year.

Sheridan, Whittier and Lyndale neighborhoods made the biggest contributions to new inventory, with 5 each.

A value-add 8 bedroom, 3 bathroom condemned triplex in Near North will give a buyer a chance to generate cash flow and equity at $189,000. A 6 bedroom, 4 bathroom side by side in the Fulton neighborhood offers easy access to Lake Harriet at $859,000.

While inventory was up in May, sales were down. Twenty-nine multifamily properties changed owners during the month; down 23.7% from both April and May 2024.

An off-market sale of a 6 bedroom, 6 bathroom triplex in the Whittier neighborhood topped the month’s sales at $780,000.  Meanwhile, a 4 bedroom, 2 bathroom refreshed house conversion in the Hawthorne neighborhood retailed at $222,500. The Sheridan, Whittier and Central neighborhoods each contributed 3 transactions to the city’s total.

Curiously, May’s sellers received, on average, 100% of their original asking price. They spent an average of 35 days on market; down from last May’s 45. More impressive still is when examining the total time sold listings spent on the market, this year’s average of 59 represented a 41% decline of CDOM from May 2024.

To me, this suggests if a property is priced correctly, it is selling quickly. Those priced less strategically may be lingering.

Just like every other market.