When will housing prices go back up? (Minneapolis, Richfield: renting, credit score)

[moving123456]

Originally Posted by nick is rulz

Incorrect. I've seen plenty in decent areas for well under $150k. Not sure where you got this information, but its simply not true.

Originally Posted by golfgal

Well, I guess "decent" is in the eye of the beholder because I don't consider a "decent" neighborhood one with rusted out cars all over and boarded up houses lining the streets. There are plenty of TOWNHOMES but not single family homes and when the OP is coming from a place where $150K will buy a REALLY nice house he will be in for a shock when he sees what $150K will buy here.

Mound currently has multiple sub-$150k listing just blocks from Lake Minnetonka without rusted cars or boarded up houses lining the streets.

$99,900



$123,500



$123,900

[moving123456]

Originally Posted by nrogers1122

Really, the question boils down to housing prices. Right now they are at an unheard of low. I don't imagine them going much lower, but how long will they stay on the floor? I have heard people say to expect low prices for the next 5 years; but I have also heard them talking about double dip recession in the same week as they spoke of a hopeful recovery.

Are they really currently at an "unheard of low" or just "unheard of" during the real estate bubble?

The current nationwide average price isn't even half way back to the pre-bubble average according to this chart.....

[nrogers1122]

I plan to stay in the TC after graduation, and to spend the next 3-5 years after graduation making improvements in the house to increase value and then to sell it. I had considered the possibility of relocation, but I will have to battle for in-state tuition and if I get it, I'll need to stay in-state to prove my intentions. This means that there is a high probability that I will work in the TC. In the even that I do find myself in another state, I would rent the property. Also, if I went to another state, it would have to be for $$$$$$$. Therefore, I would be able to afford a small house there, and a small house here (until I sold the small house here).

Regarding the analysis of "nice". I think its in the eye of the beholder, which is what makes this so difficult. I have found a few nice houses in the Robbinsdale, New Hope, Crystal, and Richfield areas. They aren't what I would move into if I were keeping my job and not going to school; but they are sufficient in space and a safe place to get a start.

The question is, do you think that I would be losing out on an opportunity to get in at a low price now, or will the market be at this range for next year too?

P.S. - The reason I am looking at the short term is a) I want to know if I can safely rent for a year and still get a house at these prices; and b) If I get a house and am forced to sell for whatever reason (layoffs, etc.), how likely would I be to get screwed by the market? I'm not looking into making this a short-term investment, as stated previously I am looking to find a place for a time frame of about 7 years.

[MN-Born-n-Raised]

Originally Posted by moving123456

Mound currently has multiple sub-$150k listing just blocks from Lake Minnetonka without rusted cars or boarded up houses lining the streets.

$99,900



$123,500



$123,900

I was looking at some properties on Lake MTKA last year and drove though a llot of Mound.

It is NOT my cup of tea. There is no crime issues but the neighborhoods do have junk in too many of the yards. The condition of the homes is all over the map. For those of us who prefer neat orderly neighborhoods, I'd stay clear of Mound. If I took my camera out and snapped some pictures, it would be obvious that there is a reason for those prices.

[nick is rulz]

"I have found a few nice houses in the Robbinsdale, New Hope, Crystal, and Richfield areas."

I can tell you for a FACT that all of the suburbs you have mentioned do have multiple properties in move in condition in respectable neighborhoods for under $150k. New Hope has fewer than the others, but they're still there. Im currently house shopping, and I've looked at several houses in each of these communities that were around that pricetag or lower in some instances.

[rcsteiner]

Originally Posted by Radical_Car

Yes, this is very true. Don't buy unless you have a stable job where you for sure won't get laid off.

Unless you are self-employed, layoffs are always possible.

[trackstar13]

Moving123456

The chart you posted is old and you are definitely right about the unprecedented price increases during the real estate bubble and I love the Shiller index, great resource for those interested in real estate. In the first quarter of 2010 we were at about a 130 on the Shiller index nationwide and that is the lowest we have been since 2003. Most experts also predict that by the end of this year with another 10%+ decrease in home prices nationally (well everywhere except Washington DC) we should be under 110 on the Shiller scale, which would put us at pre-bubble home values. If you want to see the more updated charts and excel files, here is the website: www.standardandpoors.com

[trackstar13]

Sorry I am still getting used to posting here and I am not sure what happened to the website link to Standard and Poors

[Kebinminn]

I wouldn't buy as an investment unless you expect to be in the home for 7+ years. Personally I think the market isn't going to drop much more but I don't expect prices to increase much over the next few years either. I do think you can buy and it will maintain it's value a few years down the line and that may be enough since you can deduct your mortgage interest so you may end up ahead. I just wouldn't expect to make a big profit by fixing one up.

[Dontbewillful]

I bought a 4 bedroom home just off Victory Memorial in Minneapolis last fall. I put in a nice fence this spring, paid someone $2500 to refinish the floors, and put in some sweat equity of my own, and everyone who comes to my house (in one of the safest neighborhoods in Minneapolis) raves about it, even without seeing the "before" pictures. I will throw my hat firmly in the "there are plenty of nice single family homes below $150k" arena.

I guess my idea of a nice home and a nice neighborhood is one where there is variety and parks and a nice mix of neighbors who watch out for each other. Someone else's cup of tea may be a development in a suburb where every house is a like and there's association fees. Just because someone else has a different idea of "nice neighborhood" than I do doesn't mean that I live in an area with rusted out cars or crap in the front lawn. "Different" does not necessarily equal "worse."

You could not PAY me to live in a "nice, neat suburb."