Can't buy a SFH in Twin Cities for 200K? (Minneapolis: low income, apartment complexes)

[yellowsnow]

Originally Posted by yellowsnow

It's time to revisit this thread. Looks to me like this is becoming more doable every day. Don't give up, keep looking. Prices are continuing to drop!

I have a friend who has been looking at homes for a while. She can afford much more than she could even 6 months ago. She has decided to rent for now and buy later. Probably a good move on her part. She can jump in when she thinks the market has hit bottom.

Not good news for me! I need to sell a home! All the news about lenders in trouble and foreclosures leads me to believe prices are going to drop more.

I wrote this in March and it's still true. Housing is becoming more affordable all the time. I think you can find what you want now!

[midwest456]

Are there any stats on prices dropping from a good impartial source, like maybe the state govt? I have seen stats in the media about the number of sales dropping but not how much less homes are selling vs what the same would have last year. If they used price per sq ft for a neighborhood that would be more helpful than something like median home price which can be misleading. They also aren't revealing in some cases how many concessions or extras were added into the sale rather than just dropping the sale price.
Between the brake on the excessive permissive lending that was artificially swelling the money supply and the glut of inventory I don't think the market has bottomed at all. It's just stalemated.

[yellowsnow]

I think you are underestimating the 'desperation factor'. Most people don't sell because they want to. Something like a job change is forcing the issue. And if these people had to buy another home and are now making 2 mortgage payments; it's only a matter of time till they are willing to settle for less. It's just economics. Most of us would rather accept 30K less than make another 30K worth of payments. The exception would be the folks with no equity/wiggle room. They are desperate to make it through closing without having to pay in!

Next is *MY* group of people. We have tons of equity and there just are no buyers. When do I get so tired of my life being on hold that I will do anything to just unload the property? I'm sick of cleaning house and I'm tired of saving my vacation for a move that doesn't happen. I want to do laundry and fry fish! Selling a home is stressful and I want my life back! How long will the people like me wait?

Anyway, statistics are available from local agents and some of the title companies publish monthly as well. Look for a 'Market Watch' type of report.

So far, the only thing I've done right in this train wreck is avoiding the buy on contingency thing and the 2 mortage payments/2 houses thing. I am grateful for that. Nothing makes a seller 'motivated'(that's RE talk for must accept any offer) faster than 2 payments and houses to care for!

[Navelinski]

There are several reasons for the differece in home prices between the north and the south sububs of Minneapolis. Generally, I'd say they fall into 3 different categories: history, geography, and politics.

History - because the north metro is located on the Great Anoka Sand Plain, it is not good for farming, other than sod farming. So the development in historical terms was slow to start and most of it was near presentday Anoka.

Also, Coon Rapids and Blaine used to be part of Anoka so they don't have their own little downtown areas. They kind of grew up along the highways and were not planned in the same way as an older town like Anoka or Chaska were.

Geography - When the airport was built on the south side, it meant that a larger amount of money was spent by the state on developing the roads and the area around the airport. The airport also drew in many businesses and companies who found it to be an advantage to be close to the airport. There are also fewer lakes in the northern suburbs. And with the Mall of America, the Airport, Valleyfair, Canterbury Park, Raceway Park, the Renaissance Festival and Murphy's Landing being located on the south side; they all attract people to the south side.

Politics - There have been many high level state officials who represented the southern areas, especially Chaska, Bloomington, and Eden Prairie. Naturally, they worked to bring projects to their districts to boost their popularity with the voters. Carol Molneau is a recent example. She is from Chaska and was a legislator before she became Lt. Govenor and head of the Dept of Transportation. So when new money is available for roads, it is pretty easy to see that she is going to have a little more "pull" than some of the legislators in the northern suburbs. That's not to say that she is doing anything wrong.

When it comes to distance... The northern are closer because the downtown area is not in the geographic center of Minneapolis.

You also have to contend with the Minnesota River on the south side. There are only 4 major bridges across the river at 35W, Cedar Ave, 35E and Hwy 169. This clogs up traffic, especially when it is foggy.

Can you tell I'm into geography! I hope that helps!

[Navelinski]

Yep! Yellowsnow is right. If you've going to buy a fixer upper, buy one in a more upscale neighborhood. Champlin has an older section that has some good homes just need to be updated. That would be a great place to look. Also, the Elm Creek Park Preserve is in Champlin, which is another plus.

[geoeric]

I have a great single family house in the North part of Brooklyn Center. It is just off of Hwy 252. Its only a block or two from Palmer Lake Park Preserve. The homes are all built in the 1950s-1970s, but they are very well kept up. Its true that there are some crime issues in Brooklyn Park, Brooklyn Center, and any other 1st tier suburb. Thats what happens when you get close to a major metropolitan area. But, I have never had a problem in my neighborhood, most people who live there are families or empty nesters. The houses are pretty reasonable, especially for how close you are to downtown minneapolis and Hwys 694,94,35 W, and 100 I currently live in Omaha due to my job and am trying to sell my house in Brooklyn Center. mod cut

[Sharolu3]

As you are a buyer, why are you doing all this work on your own. Find a reputable Realtor. Sellers side pays the cost and is always factored into the price. All these posts about median price, fixer uppers, etc. are so much junk. I have been a Realtor for 8 + years and it is simply a matter of the market at a given point of time. "Median Home Price" meaningless. Each area thinks they are the best naturally, so people living in that area no little about the others that isn't prejudicial. Our metro area (2 cities) is 65 miles across. Sit down with a seasoned buyers rep and talk over what you want. They will then be able to fit a certain area and you price range. If you want medicine do you ask your friend or go to a pharmacist? For the biggest transaction in your life, I suggest you seek good council. Realtors are regulated and licenced in MN. I would say it is very possible to get a very nice home in the metro area for under 250 K. Some people conside a "fixer upper" something that they don't like the wallpaper in. Good luck!

[tgar2004]

My husband and I were in exactly the same position a year ago and through networking with others we found our real estate agent who sold our home in under 2 months which is unbelievable in todays market (Minneapolis). mod cut

[Minneapolitan]

SW MPLS is FULL of small homes with tons of character with any size yard you can think of.

[Navelinski]

Boy things have really changed since this post got started.

Just as an example - there are currently 289 single family homes active on the RMLS as of today in Coon Rapids alone. Of those 128 are listed for $200k or less.

Here is a list of 97 single family homes listed for sale in Coon Rapids and priced between $150,000 and $200,000.
And here is a list of 31 single family homes listed for sale in Coon Rapids for $150,000 or less.

Now some of these are fixer uppers, but MANY are loaded with new upgrades and extras. I was looking at a home just yesterday that was completely redone inside and outside. It is already a great deal, but in all honesty, you could mostly likely ask the seller to pay all or part of the closing costs OR come down on the price and still get it for around $200,000.

Lots of good value out there these days...

Navelinski