Is the Twin Cities Duplex Market Becoming a Seller’s Market Again?

Spring has arrived in April’s Twin Cities duplex market as the early green shoots of property sales hinted at a return to a seller’s market.

The month saw just a 4-month supply of inventory on the market. In other words, if no new listings became available, at our current sales pace, in 4 months, we’d be sold out. It was the first time since December that sellers found themselves in this position.

Generally speaking, any number below 5 is considered a seller’s market in which sellers have more leverage in negotiations. Buyers and sellers have equal chances in a balanced market, with a 5-6-month supply. Anything beyond that, and buyers have more power.

The month saw 167 new listings come to market. This was down slightly from March’s 173 and last April’s 172. In all, there were 344 active duplex, triplex, and fourplex listings for buyers to choose from in the 7-county metro area last month. This was down 4 from March, but represented a year-over-year increase of 9.2% and a 98.8% over 2021’s numbers.

Minneapolis saw 85 new listings hit the market. St Paul contributed another 55. A Minneapolis South Uptown neighborhood 2022-built triplex with 12 bedrooms and 6 bathrooms topped new offerings at $1,399,995. A St Paul Payne-Phalen neighborhood 4 bedroom, 2 bathroom house conversion with fire damage provided a value-add opportunity at $125,000.

The 83 property small multifamily owners who sold last month went under contract at a time in winter, when there was a 6-month supply of inventory. Perhaps as a result, they averaged closing prices that were 97.2% of their original asking price.

The market was topped by a 2018-built, 16 bedroom, 12 bathroom fourplex in Minneapolis’ Whittier neighborhood, fetching $1,242,000 for the sellers. A fire-damaged, boarded up  5 bedroom, 4 bathroom fourplex in the city’s Folwell neighborhood torn down to the studs offered a project at $85,000. Minneapolis contributed 41 sales to the month’s total, and St Paul 21.

Sold properties spent an average of 62 and median of 35 days on the market before selling. When including any market time from a previous listing, the average swelled to 98 days and median 55.

While spring is most often considered the best time to sell a single family home, duplex, triplex and fourplex sales remain relatively constant throughout the year. Let’s hope April is a harbinger of things to come.