How is the RE market in MSP? (Minneapolis, Grant: sales, foreclosure) - Minneapolis - St. Paul - Minnesota (MN) -Twin Cities - City-Data Forum

wohelo · 05-22-2007, 09:10 AM

I have a son who is going to the University and will probably be there for five to six years, we are wondering if it is time to buy a condo or small house in the area. Is the market at the peak? or falling?? Thanks for your advice.

yellowsnow · 05-22-2007, 09:29 AM

There is a definite shortage of buyers. Don't know about the condo market. That's what I would buy if I was a student. No shoveling/mowing!

golfgal · 05-22-2007, 11:00 AM

It would be a GREAT time to buy a house, condo or townhome in Minneapolis. Prices are pretty low right now and there is a glut of townhomes/condos on the market right now.

nick is rulz · 05-22-2007, 08:16 PM

I dunno, I would lean against buying a condo. Yeah, theres a glut of them but for some reason that doesnt seem to significantly slow down the building companies churning them out. I dont forsee the market in that regard improving anytime soon.

moving123456 · 05-23-2007, 11:02 AM

I am no realtor or expert, but the market for much of the metro area looks stagnant to me. I see homes sitting on the market for very long periods with few showings and no price drops.

TimtheGuy · 05-23-2007, 02:53 PM

There are LOTS of deals to be had on townhomes and condos. Find a property where someone NEEDS to sell (job transfer, divorce, foreclosure, etc.) and go LOW on your offers.

midwest456 · 05-23-2007, 03:38 PM

Prices have come down from the peak? where is the hard/public data to show this? All I have seen is a 25% drop in the *volume* of sales, *not* the prices.

wohelo · 05-23-2007, 03:42 PM

Thank you so much for all of your input. I have seen this over building and then the sudden stagnation to drop in prices across the country. Doesn't it amaze you that no one turns off the facet of building when the numbers don't add up (supply and demand)? So what happened to "The Revue" condos?

Thanks again!

Jaxx99 · 05-23-2007, 05:43 PM

I'd say buy. a time horizon of 5-6 years is pretty safe. If you were saying 2-3 years, I'd be a little more cautious.

Navelinski · 05-23-2007, 07:31 PM

Now is a very good time to buy.

The Twin Cities is in a more "balanced" market environment now. In the past, sellers were spoiled by riduculously high sales prices and the feeding frenzy that sometimes occured when vacancy rate was extremely low due to a housing shortage. Many sellers are still pricing their homes too high and that is why they are sitting on the market. The average days on the market for the 1st quarter of 2007 in Hennepin County was 79 days. In contrast, the average days on the market in the 1st quarter of 2004 was 46 days. Based on information from the REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC for the period 01-2004 through 03-2007.

The really "white hot" market that we had from 1999 to about 2005 was a fluke. It was certainly NOT normal and it is not likely to reoccur any time soon. So today, those same people who overpaid a few years back are stuck because they simply owe too much money on their homes and/or they have an adjustable rate mortgage.

The area around the University is full of good deals on condos and townhomes. Today, I found 19 condos/townhomes in the $59,900.00 to $199,900.00 price range. Granted, there are bound to be some fixer uppers in that group, but they can be a good opportunity for a young person to build some "sweat-equity" and get themselves established financially.

The average sale price in Hennepin County for the month of April is down 8.21% from this same time last year and the number of closed sales is down 14.4% for the same time period. Based on information from the REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC for the period 04-2006 through 04-2007.

Many local and national economists believe that the market will start to improve by the end of this year or the beginning of next year. The "so-called buyer's market" won't last too long.

Holding a property for 5 to 6 years will allow time for the property to appreciate and help offset the cost of ownership. Just don't go crazy and get in over your head. Be realistic and remember, there are always going to be unexpected things that happen when you own a home. Ask the seller to pay for a home warranty program - these generally have very low out of pocket "co-pays" and cover major items like a roof or a furnace. Just don't budget yourself too tight and you should be fine.

Don't forget you can deduct the mortgage interest from your federal income tax! Speaking of taxes, there is a special deal for 2007 only - if you buy a home this year - the cost of your PMI (mortgage insurance) MAY be deductible. ASK YOUR TAX PROFESSIONAL!

If you want housing statistics - real hard numbers - ASK A REALTOR! That's what we are here for! We are the ones who collect and maintain the data, so if its data you want, go to "straight to the horse's mouth"

www.REALTOR.com (broken link) is also a good source for data and information. This is the consumer's access to the National Association of Realtors. Just remember that trends in the midwest generally do not follow the trends at the national level. This is because the number of people living on the east or west coasts has a great impact on the national numbers. In the midwest, we are generally more stable.

If you want local data, you could establish a relationship with a local REALTOR. We don't bite, HONEST!