Watch Appreciation To Predict Twin Cities Duplex Sales

I recently attended a class in which the Florida-based instructor, upon seeing healthy housing sales data for the Twin Cities encouraged the attending Realtors to pay attention to the market’s slowing appreciation.

As most real estate investors know, as long as a property cash flows, appreciation is nothing more than the cherry on a sundae. I did wonder, however, if I would see the same changes in November’s multifamily market as the instructor saw in our housing market.

Sure enough, I did. As of last month, 2025’s average sales price for a 2-4 unit property in the Twin Cities is $423,429. That’s an increase of 1/2 of 1% from last year’s $421,218. For comparison, property values rose 5% between 2023 and 2024.

Things were a bit sunnier with the year over year median price. Last year finished at $400,000. To date, 2025 looks destined to have a median sales price of $405,000. That represents 1.25% in appreciation. The change between 2023 and 2024 in median values was 5.2%.

In a nutshell, both the average and median appreciation rates show signs of a slowing market. They were not the only measures to do so.

November saw 115 new listings hit the market across the metro. That is a 43.75% year-over-year increase in properties for buyers to choose from. Minneapolis contributed the majority, with 52. St Paul followed with 39.

A boarded-up, 3 bedroom, 2 bathroom house conversion in Minneapolis’ Powderhorn Park hit the market at $75,000 to win the value of the month prize. A turnkey Lowry Hill triplex with 6 bedrooms and 3 bathrooms offered a move-right-in opportunity at $899,000.

Meanwhile, a 10 bedroom, 4 bathroom duplex in the Prospect Park – East River Terrace neighborhood of Minneapolis topped November’s sold chart at $699,000. St Paul’s Payne-Phalen neighobrhood provided a 3 bedroom, 3 bathroom house conversion with some sweat equity opportunity at $129,500. In all, Minneapolis contributed 29 of the month’s solds, with St Paul chipping in another 18.

As a group, sellers managed to net 96.% o their original list price when they closed. This took an average  of 90 Cumulative Days on the Market; the most since April, 2016. When examining just the average number of days in a property’s final listing before selling, that average dropped to 54. This was 20 days longer than one year ago, and 32 more than November, 2020.

In all, the metro saw a 5 month supply of inventory. This was up from October’s 4 month supply, as well as last November’s 3 month supply.  In other words, we are at or very near a balanced market, meaning buyers and sellers are on equal footing when negotiating any deal.