Minneapolis Duplex Market Hits 10-Year Inventory High

If you’ve been shopping for a Minneapolis duplex to house hack or diversify your investment portfolio, congratulations.  With a 7 month supply of inventory, August was a buyer’s market.

August saw 479 duplexes, triplexes, and fourplexes available for purchase in the city. That means there were more properties to choose from than in any other month in a decade. Of these, 159 were new listings.

We haven’t had a normal supply of inventory in almost a decade. In fact, we’ve had a shortage. Setting a high mark needs to be kept in perspective.

The Whittier neighborhood topped the month with six newly listed investment opportunities. Near North also contributed 5, and St. Anthony West 4.

A house conversion duplex in the Longfellow neighborhood in need of rehab and restoration offered buyers a chance to build equity at $159,900. For less ambitious buyers, a 6 bedroom, 4 bathroom true duplex in the East Harriet neighborhood in move-in condition topped the market at $775,000.

A bit of a buyer’s market has not resulted in the city’s small multifamily sellers closing on the sale of their properties at substantially less than they listed it for. In fact, the 37 owners who gave the keys to a buyer did so at an average of 99.1% of their original list price.

Sellers finished the month at an average sales price of $478,811 and median of $465,000. Both were above July’s numbers, as well as those from last August. Sales were topped by an off-market Linden Hills duplex with 5 bedrooms and 3 bathrooms that closed at $825,000. A Powderhorn Park house conversion duplex with 3 bedrooms, 2 bathrooms and a need for cosmetics set a relatively high bottom at $185,000.

Properties spent an average of 42 days and a median of 27 days on the market before selling. These figures rose to an average of 56 cumulative days and median of 27 when including any previous market time before coming back on the market and ultimately selling.

Powderhorn Park lead the way with 3 sales. Near North, Lowry Hills East, South Uptown, Linden Hills, Armatage and the Windom neighborhoods also saw multiple sales with 2 each.

There were 55 properties that expired from the market in August. This was down from July’s 74 and 74 one year ago.

If you’re in the market either to buy or sell a Minneapolis duplex, give me a call. I’d be happy to help.