Twin Cities Suburb Continue Their Hot Streak

Posting just a two-month supply of inventory in May, the Twin Cities suburbs continued to be a fabulous place to be a duplex, triplex, or fourplex seller.

That’s the very definition of a seller’s market.

To be honest, there aren’t as many small multifamily properties in the suburbs as there are in the urban core of Minneapolis and St Paul. Their rarity, combined with less restrictive rent control and eviction laws found in many suburbs, properties priced appropriately don’t linger on the market for long.

In fact, the 17 properties that sold in may spent, on average, just 33 days on the market. That number rose to just 39 days when including properties that had gone of and back on the market before selling.

The market topper for the month came from Crystal, where a new construction 8 bedroom, 4 bathroom duplex closed at $695,000. Belle Plaine offered a buyer a tremendous cash-flow opportunity, closing at $many suburbs with $280,000 while grossing $37,000 in rent annually. May’s sellers received on average 100% of their original asking price for their properties. Sellers netted an average of $479,860 for their properties.

May saw 35 new duplex, triplex and fourplex listings in the suburban 7 counties. South St Paul made the biggest contribution with 3, followed by Fridley, Columbia Heights and Hastings with 2 each. In all, the month saw 46 listings for buyers to choose from.

The value-add opportunity was a 4 bedroom, 2 bathroom house conversion in Shakopee that listed at $280,000. A Hopkins 8 bedroom, 2 bathroom side by side generating $4600 per month in rent listed at $555,000.

If you’re looking to buy or sell a duplex in the 7 county area, Minneapolis or St Paul, give me a call.