Profiting in today’s Real Estate Market

Our most desirable neighborhoods are at a cross roads.  And home buyers and sellers can take advantage of it. 

Our "best" neighborhoods are feeling growing pains, caught between preservation & modernism, keeping things as they were & market forces.  As our population grows, the number of people in the upper 20-25% of income grows (this group is actually growing faster than the population as a whole).  The size of our "best" neighborhoods grows as a direct result.

 Areas once considered "above average" are increasingly being assimilated into the "best" areas as more and more upper income families enter the market.  It's here in this transition zone that home buyers and sellers at all price ranges can profit. 

There is no debate about the demand for a safe, affluent, urban neighborhood is great.   Great urban neighborhoods have always been a "gold standard", appreciating steadily over time, never declining in value, even today.  However, only the 20% of the population can afford to live in these areas.   

As demand grows, change occurs.  Demand grows as the top 20% of income earners is a growing population, and the "back to the city" new urbanism movement, both fuel demand for nice homes in nice neighborhoods in the city, and first ring suburbs.  Locally, this includes Edina first and foremost, then St. Louis Park, Southwest Minneapolis, and Golden Valley as a second tier for various reasons.  The change that occurs is in the "nice" but not "great" parts of these areas that are getting assimilated or included into the "great" parts. 

Anyone can benefit from this process.  Regardless of price range, buyers and sellers can profit by making wise investments in their housing and acting in these transition areas.  Home values in these transition zones may vary from $150,000 (functionally and structurally obsolete home, in an area that's not "hot" today) all the way up to $3-5 million (new or fully renovated homes in the hottest area). 

It's the knowledge of development trends, land values that make buyers money.  Knowing the most profitable square footage range and finish levels, make sellers money.  But, it's a lot trickier that it sounds.  This is no game for rookies.  Determining the right trends, values, and sizes requires scientific discipline and rigorous research, and even then, the market changes, and we must always keep ahead of the curve on changing market dynamics.  That's where we come in; working with Shipman + Larson + Kolkman part of the Replacement Housing Consortium you're guaranteed to be working with the most knowledgeable practitioners in the business.