Can't buy a SFH in Twin Cities for 200K? (Minneapolis: for sale, real estate)

[midwest456]

Hi, I am considering a move to the Twin Cities next summer or later. I am not locked into a specific employment location yet, just interested in the city for the overall quality of life and because I have friends and family there. Because they all tend to be on the west side of the metro area, I am looking there first, but I also don't have a big budget for those expensive homes in suburban Hennepin. I owned a condo before and after my experience with noisy neighbors sharing walls, ceilings etc. would prefer to have a modest single family home (SFH) with a small yard. No kids so school district is not a consideration.

I visited the city data section on this page and saw that the "median home value" for towns I was interested in like Blaine (whichever is the nicer part of that city), Golden Valley and St louis park was from 125K-160K but I am seeing a lot of comments on the minneapolis forum that you can't get anything more than a shack for less than 250K. Could someone please explain what median home value is and why it is so much lower than the sale prices? Is it skewed downward a lot by townhomes? I had the impression that even the townhomes for sale tended to be at least 175-200K.
I did see a fair number of homes in those cities on various real estate sites for a bit under 200 so I wonder if that means there is something seriously wrong with them?

Are home prices likely to be much lower six months from now? I read about how it is becoming a buyer's market but that sellers are slow to lower their prices.

Thanks for your help in advance.

[HKB]

A single family home for less than $200k can be found in the north metro near Blaine, but it will most likely be in a less desireable neighborhood. Coon Rapids and Anoka (blue-collar suburbs immediately west of Blaine) have many cookie-cutter 1950's/60's ramblers in the $150k-$200k price range, but many of them are dumpy and need a lot of work. I grew up in this area and I have to say that the homeowners in some of these neighborhoods don't show much pride in keeping their houses in good shape.

I would think that the same style house in Golden Valley and St. Louis Park would cost quite a bit more than that, as those areas are in a more central location.

I read that the median home price in the Twin Cities is about $230k, but keep in mind that condos and townhomes are factored into that figure. The median single family home in the north and west suburbs is probably around $275k.

Good luck.

[midwest456]

thanks. Maybe i will look farther south or east or see if there are any townhomes with better soundproofing. There must be a lot of small condos factored into that median home stat.

[yellowsnow]

Any SFR you find for less than 250K is going to be a fixer. That's not necessarily a bad thing. If you can find a fixer in a really good area, it can help you build equity.

Who knows what the market is going to do. I've already lost more than 10% of my homes value. I am hoping we have seen the worst of it. The last Fortune report I saw said the midwest was going to be a stable market in 2007. I can tell you for sure, you will get a lot more for your money now than you would have a couple years ago. You can get even more for your money by going further north and having a longer commute. Check out Monticello, Big Lake, Otsego, and Becker. These towns may be a better deal because the North Star(commuter rail) will be serving these towns in the near future.

I don't understand those median home value things but if I could find a median home for 125K, I would buy it! Maybe they are talking about tax values? Not resale values? I haven't seen prices that low since about 1995.

And BTW.......taxes are a lot lower outside the metro area!!!!!

[golfgal]

If you would consider a longer commute some of the smaller towns outside of the metro area might have what you are looking for. Also, since you don't have a job here yet, you might make enough to pay for a $250,000 house and you can find a nicer, small house in that range in many places around the twin cities. As for prices being lower, possibly but not that much lower. We personally haven't noticed any decrease in our property values. I think a lot of houses on the market were overinflated because of the hot market the past few years. I think you will find houses will be AT value vs the thousands over value people were getting.

[midwest456]

After several people mentioned it, I did a search and found the site at
http://www.mn-getonboard.org. They have lots of detail and updates on the progress but I didn't see an estimated date when it would be done. Any idea?

[yellowsnow]

I am thinking it's all dependant on funding. The tracks are already there. In Ramsey(just N of the Cities) they just built a huge parking garage. I thought it was in the middle of nowhere then...DUH, I figured out it was for the North Star. If they are already building parking, it can't be that far off!

[Slig]

I have been actively looking for a house in Minneapolis for under 200k for the last few months. All the houses I've found are either fixer uppers, in a bad neighborhood, or very small. Also, about 95% of the houses were built before 1930. I've looked at condos too and really the only thing you can get for under 200k are 1 BR 1 BA's, maybe a den if you're lucky.

[midwest456]

Thanks. Would outlying towns like Monticello or Big Lake have access to broadband internet via cable, though? Also, what are those towns like culturally? Is it like Coon Rapids area? Another area I was wondering about was the less urban northwest corner of Hennepin County (Corcoran etc.) Worth looking at?

[yellowsnow]

Originally Posted by midwest456

Thanks. Would outlying towns like Monticello or Big Lake have access to broadband internet via cable, though? Also, what are those towns like culturally? Is it like Coon Rapids area? Another area I was wondering about was the less urban northwest corner of Hennepin County (Corcoran etc.) Worth looking at?

Yes, there is broadband available. If you are willing to go that far north, get out of Hennepin County. Taxes are too high and you are paying for the infrastructure of MPLS without getting the benefits of living there.

Culturally, not much available. If you want to see a play or a sports event, you go into the cities.