Minnesota Real Estate Market Changes

[MineralMan]

I just completed a project of writing over 100 web pages full of content for a Twin Cities, MN real estate broker, averaging over 600 words per page. My partner is completely rebuilding the site. Part of that process was doing informational profiles and market profiles of over 50 cities in the metro area around the main cities. In doing that, my research involved extensive access to the MLS listings in all those suburbs and in Minneapolis and St. Paul. What I found was interesting, I think.

Well-priced homes are selling steadily, both to first-time homebuyers, as replacement homes, and to real estate investors. And they're selling in every price range, from cheap foreclosed properties to really expensive homes. Looking at recent sales, there's an active market for homes that are priced well and that are in good shape. The others aren't selling well at all, and the surplus of homes not in good condition, foreclosures, and short sales is driving down the median price.

On the other hand, rental vacancy rates here are almost at 0%, so real estate investors are starting to buy up the cheap stuff to do a basic rehab on and rent them out. Sales of distressed homes are actually beginning to increase for that reason.

The newest phenomenon is an upsurge of first time buyers taking advantage of lower prices and low interest rates.

Now this is in Minnesota, where our unemployment rate is two points below the national rate, so that influences the trend.

The bottom line is that sales are up, but continuing foreclosures are keeping inventories high, so the trend isn't really being noticed. I find it encouraging, though.

On another note, I realized that I just wrote a book on the real estate market in this area in a month. I'm really tired, but my check is in the mail, so it's OK. Best of all, the web site developer I work with just kicked my fee up 10% without my asking. A nice end to a tough project.

[classof56]

1. A family member just bought an older beautifully remodeled home there

Made an offer well below original asking price, which was accepted, and the subsequent appraisal put the value a few thousand more than that. A wonderful deal for a first-time home buyer, which I now understand better thanks to your post. Congrats on doing such a great job and getting well compensated for your work!

Peace

[MineralMan]

2. The market is perfect for first-time homebuyers who have

some money put aside to make a decent down payment. If I were 20 years younger, I'd be rehabbing houses, but I'm too old to do the work involved, and doing the work yourself is the only way it makes sense.

I just found what I learned encouraging, in the face of all the negative press the real estate situation is getting. There are some genuine opportunities right now, and it is a good time to buy, if you have the means to do so.