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Old 02-06-2010, 07:48 AM
 
Location: Twin Cities
302 posts, read 726,870 times
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Hi...just wondering what everyone thinks of current Twin Cities/suburbs real estate market? Any realtors/sellers?...what are your opinions? Which areas are improving...which aren't? I REALLY want to sell my town house (to buy a single family home) but I am NOT at all optimistic and thinking I might need to wait another year (or two!)! Zillow.com prices/comps scare me!! When is the market going to improve?
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Old 02-06-2010, 12:54 PM
 
Location: Brooklyn Park (Hennepin)
117 posts, read 377,521 times
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I would think you are looking at flat/stagnant prices for at least the next 5 years. There are many foreclosures that will hit the market this year and we still have alt-a and pick -a- payment loans that will soon be resetting. The HAMP/HARP programs just delayed the inevitable. Also we still have a lot of unrealistic sellers so until you see the foreclosures work through the market AND and the unemployment rate improve along with GOOD paying jobs, it is my opinion the market will stay flat.
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Old 02-06-2010, 01:09 PM
 
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This might be totally irrelevant in your situation and I'm no expert, but I just read an article in the Downtown Journal that said that while this year wasn't expected to be good for those selling condos, it also wasn't the worst, either. The gist of it was that there's not new construction going up, so sellers of existing properties aren't competing against the brand new stuff. Maybe the same would apply for a suburban town house?
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Old 02-06-2010, 01:28 PM
 
Location: MN
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When you say "improve", do you mean go up? I would call down an improvement. Much of the stuff that I have looked at recently is still overpriced. Many people are still asking over their bubble purchase prices. Too many sellers are still living in the real estate bubble. I have watched some stuff sit on the market for 6-12 months without price drops.
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Old 02-06-2010, 02:05 PM
 
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Quote:
Originally Posted by moving123456 View Post
When you say "improve", do you mean go up? I would call down an improvement. Much of the stuff that I have looked at recently is still overpriced. Many people are still asking over their bubble purchase prices. Too many sellers are still living in the real estate bubble. I have watched some stuff sit on the market for 6-12 months without price drops.
There are sellers and there are sellers. Some can afford to wait it out to get their price, others who need to sell now will be more realistic in setting their price. Of course, those get snapped up fast.
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Old 02-06-2010, 02:30 PM
 
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Honestly it depends on what you are looking for. We are looking for a one story with a basement that is only partially finished at most that is a walkout for my parents--either a single family or detached townhome--and there are exactly 2 on the market right now that fit that criteria in the southern metro where we are looking. Now, if they wanted a townhome that was multi-level in a complex of 4 or 6 units/building there are about 260 of them on the market.

If I were trying to sell a townhome I would seriously consider renting it out--THAT is where the market is right now for townhomes.
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Old 02-08-2010, 12:06 PM
 
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I'd love to hear more insights on the market myself. My wife and I are fairly new to the area (about 6 months), and are considering purchasing a single-family home in the near future (we're currently renting in SW Minneapolis). But, we're hesitant to jump back into the market, having just lost a chunk on the sale of our home when moving out here.

On the national level, there are a lot of conflicting opinions on whether things have stabilized, or whether another substantial dip is imminent. Not sure what the projections are for the twin cities (particularly SW Minneapolis, which is where we are leaning towards buying at the moment, though that may change as we look around more). Minneapolis home prices still seem higher than we'd expect, which leaves me worried that they have much farther to fall. But, not being in the area for long, its tough for me to judge that with any confidence.
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Old 02-08-2010, 01:12 PM
 
Location: Cleveland bound with MPLS in the rear-view
5,509 posts, read 11,872,410 times
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U.S. cities where renters should buy now - MSN Real Estate

Check this article -- it may quelm your hesitation/fear. However, I'd like to note that most of the "upside" here is driven by foreclosures pushing prices down in the outlying suburbs. You (like me) are interested in SW Mpls and other "solid" neighborhoods that really haven't been hit as hard by the housing bubble and hence, potentially have less room for inflation from market correction in the near term. However, as long as your interest in a home is just that -- a home -- and not an investment to "flip" in 5 years you should be fine in SW. I personally factor in a 0.0% price increase for the next 5 years in homes in areas like SW Mpls, St. Louis Park and W. Bloomington.
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Old 02-08-2010, 01:50 PM
 
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My brother's neighborhood in SW Minneapolis has seen houses sell if they're priced right. I doubt SW houses will be dropping in prices, although it still take some time for them to start to actively climb. There aren't very many foreclosures there, and like west336 notes, they're considered solid neighborhoods. My sister-in-law decided not to sell her SW Mpls house this year; if they'd been willing to sell it for the typical going rate for a house of its kind in their neighborhood they still would have made a nice profit over what they bought it for seven years ago. I would agree that assuming you're not planning on flipping anything, an investment in one of the SW Minneapolis neighborhoods right now is going to be a worthwhile investment. Those neighborhoods seem to have always (or at least within my memory) been fairly slow and steady investments; no massive explosions in value, but no significant losses, either.
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Old 02-08-2010, 03:32 PM
 
9,741 posts, read 11,156,127 times
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Quote:
Originally Posted by Vandelay View Post
I'd love to hear more insights on the market myself. My wife and I are fairly new to the area (about 6 months), and are considering purchasing a single-family home in the near future (we're currently renting in SW Minneapolis). But, we're hesitant to jump back into the market, having just lost a chunk on the sale of our home when moving out here.

On the national level, there are a lot of conflicting opinions on whether things have stabilized, or whether another substantial dip is imminent. Not sure what the projections are for the twin cities (particularly SW Minneapolis, which is where we are leaning towards buying at the moment, though that may change as we look around more). Minneapolis home prices still seem higher than we'd expect, which leaves me worried that they have much farther to fall. But, not being in the area for long, its tough for me to judge that with any confidence.
It depends if you are a cash buyer or planning on financing. Interest rates probably will go up in the Spring but the 1st time buyers program (which is inflating homes $5K+) and creating a sense of urgency will probably end. No one knows for sure but that is the general concensus. All things being equal, it's best to buy the home at a lower price and take a higher interest rate.

If I had to hedge my bet (I have studied the topic countless hours) I am predicting the Twin Cities metro area to will go down. I predicted the same thing last July but didn't feel like selling and then renting (I plan on moving out of my current home). That cost me $30K or so... My formally $550K home is only worth $330K if I "had" to sell it. But the good news is I could pick up a steal myself so it all averages out.

Moody's chief economist Mark Zandi said MPLS area should be down 10% plus in 2010. The higher the price point the tougher the sell. As in >$300K is much tougher while under $200K is selling pretty well. People are looking for value.

The market is very local in nature. There are several markets within an area such as the Twin Cities. As a whole, I predict it will be going down not up. But things can change quickly (although no one is predicting it). In July of 2008, gas was $3.85 a gallon and SUV's were impossible to sell. Now small cars are tough to sell and people are triving big SUV's again. No one predicted gas in July of 2008 to be at $2.50 ever (ever) again. Everyone is guessing to some degree. It's a lot more obvious for places like LA. That market is in trouble!

Last edited by MN-Born-n-Raised; 02-08-2010 at 03:41 PM..
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