Twin Cities Suburbs Still Belongs To Sellers
This year and much of last, small multifamily property sales in the suburbs surrounding Minneapolis and St Paul have largely outpaced their urban neighbors.
There are signs things are changing.
For example, July saw 25 new suburban duplex, triplex and fourplex listings. That’s exactly the same number as last year.
However, the 52 active listings represented a 52.9% increase over last July. That doesn’t mean it’s time to panic. After all, in July, 2015, which some argue may still have been part of the tale of the foreclosure crisis, there were 101 active listings.
South St Paul and New Hope lead the way with 3 new buying opportunities each. A Columbia Heights fourplex with a whopping 12 bedrooms and 4 bathrooms topped the new offerings at $775,000. A 4 bedroom, 3 bathroom house conversion duplex in South St Paul offered an entry level opportunity at $249,900.
Seventeen housing providers closed on the sale of their properties in July. This was down 4 units, or 19% from July, 2024. This represents a significant drop from the 37 that sold in July, 2020, when 30-year fixed interest rates dipped below 3%. It’s important to remember that was the one and only time that happened in history. Ten years ago, in July 2015, there were 24 properties sold. In other words, we’re closer to a normal market than the exceptional one of five years ago.
On average, sellers obtained 98.3% of their initial asking price in July, with an average sale price of $438,060 and a median of $453,500. Last year’s average was $463,176 and median $449,900. However, those numbers are a far cry from July of $015’s average price of $60,709 and median of $222,500.
The market topper for the month was an 11 bedroom, 4 bathroom Prior Lake fourplex that closed for $715,000. ANewport split entry side by side with 3 bedrooms and 2 bathrooms offered a value-add opportunity at $266,000. Brooklyn Park and Shakopee lead the way with each city tallying two sales for the month.
Duplexes, triplexes and fourplexes spent an average of 34 days on market before selling and a median of 31. Last year saw 22 days on market and a median of 7. Cumulative days on market, however, where a property goes on and off then back on the market before selling rose to an average of 44 from last year’s 26, and a median of 38 from last year’s 7.
While this may suggest a dramatic shift in favor of buyers, the suburban Twin Cities duplex market has a 3 month supply of inventory and remains a sellers market.
If you’re thinking ab
out buying or selling a multifamily property anywhere in the Twin Cities, or would just like an opinion of value, give me a call. I’d be happy to help.