Twin Cities Duplex Sellers Still Netting 98.6% of List Price in July — Despite Decade-High Inventory

Good news came for Twin Cities duplex buyers in July. More small multifamily properties were for sale than in any month in over a decade. This gave buyers more choices and more negotiating power with sellers.

Of the 94 properties that sold last month, sellers netted an average of 98.6% of their original list price. This was up every so slightly from June’s 98.5%. This means while buyers had some negotiating power, sellers nonetheless did fairly well. In fact, sellers earned an average sales price of $453,179 for the month, and a median of $437,000. Both these were well above June’s $429,791 average and $405,000 median.

An updated 8-bedroom, 4-bathroom fourplex in Minneapolis’ Whittier neighborhood topped market sales at $935,000. Meanwhile, A 3-bedroom, 2-bathroom partially rehabbed single-family home conversion missing its copper and plumbing in Minneapolis’ McKinley neighborhood offered a value-add opportunity at just $100,000.

Sellers spent an average of 38 days on the market and a median of 23 before selling. When including accrued days from those properties previously listed, cancelled and relisted, cumulative days jumped to 62, and median 33.

In all, Minneapolis contributed 43 sales to the month’s total, with St Paul chipping in another 19.

Minneapolis and St Paul lead the way in new inventory as well. Minneapolis saw 79 new opportunities to buy, and St Paul 53. A 1952-built 8-bedroom, 4-bathroom sided-by-side duplex in Linden Hills topped the month’s new offerings at $950,000. A 3-bedroom, 2-bathroom house conversion in need of cosmetics in St Paul’s Payne-Phalen neighborhood set a high floor at $184,900.

If you’re in the market for a duplex to owner-occupy or to recession-proof your investment portfolio, give me a call. You’ll have more to choose from than you have in a decade.