Do you have sale trends for duplexes?

Asked by Ehoesly, Wauwatosa, WI Thu Sep 9, 2010

Help the community by answering this question:

+ web reference
Web reference:


Tom McCormick’s answer
Tom McCormick, Agent, Wauwatosa, WI
Thu Sep 9, 2010
Ehoelsy - The trend for the past 18 -24 months is longer market times and lower prices. However, that is the overall market trend and every property is unique. We base all these analyses on averages, medians, etc. Averages are just that, an average of highs and lows. So some properties are selling significantly faster than others, and some are selling at higher prices than others, based on the individual property! Don't assume that the trend applies to your property until you talk to someone who can provide an analysis of YOUR property, taking into account the unique advantages and disadvantages of its location, amenities, etc. All that said, it is a better time to be buying than selling, for sure. I do know there are some lenders who are very flexible with loan products to make purchases work for buyers, as long as they aren't selling to the secondary market (fannie/freddie/FHA). Hope this helps!
Web Reference:
0 votes
Beth Jaworski, Agent, Wauwatosa, WI
Thu Sep 9, 2010
The duplex market has been brutal the last 18 mo. I own 3 myself and know what a great investment they are, but it is a bad time to try to sell one! Part of the issue is that Fannie Mae is requiring a point be paid on all OWNER occupied duplexes, more on investment properties. Lenders are also requiring 20-30% down on non-owner occupied duplexes. Add to this tight credit market, the fact that buyers can now afford to buy a single family home in Wauwatosa (plenty priced under $185k) and the pool of duplex buyers has shrunk to almost none. Prices are down just over 10% from a year ago and about 20% from 2006. Again, great time to be a duplex buyer - wonderful condition properties at fire sale prices!
0 votes
Dan Grunwaldt, Agent, Milwaukee, WI
Thu Sep 9, 2010
The average price of a duplex in Wauwatosa, as well as the metro area in general, have come down considerably. I did a small study of rent to sale price for a Wauwatosa duplex owner a couple years ago when the market started to turn. He had purchased it in 2001 for $154,000 and rents were $725/unit. He had only raised rents $25 which is less than 5% yet comparable duplexes by 2007 were selling in the mid $200s, over 60% more. 2 professors from, I think either Marquette or Madison repeated this analysis in more depth about a year later and concluded prices needed to come down approximately and additional 20% or rent needed to increase 20% or a combination of the 2. My numbers might not be exact but it explains a portion of the problem we are experiencing. If rents do not keep pace with increasing prices, at some point it makes more sense to rent which is an argument that is getting much more press today. There are also more issues with financing for duplexes.
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more