minneapolis market: Increasing Supply Will Slow Market Rebound
- 04/26/10 10:05 AM
Discussion about real estate markets usually tends to focus on prices. And the Twin Cities market has had encouraging price news this year. After three and one half years of declining prices, we've now had three consecutive months of increases in the median price compared to a year ago. But price trends usually follow supply/demand trends, and while most of us have been talking about prices, an important supply development has taken place.
An important factor leading to the three years of price declines was a multi-year build up in supply of houses for sale. The supply peaked at … (1 comments)
minneapolis market: Did I Say Recovery?
- 02/14/10 11:37 AM
So the Twin Cities real estate market has finally posted a year over year price increase for the first time in 41 months this January. Certainly good news but let’s not break out the champagne yet. The recovery/rebound…whatever you want to call it, is a long process and this is just another sign that we are going in the right direction as opposed to a destination we’ve been seeking. The price increase means that the median price of this January’s sales was higher than last January. Key point: this year’s sales are different houses than last year’s sales. 2009 started … (0 comments)
minneapolis market: They Finally Cut the Grass
- 07/27/09 03:01 PM
A local non profit used the City of Minneapolis ‘First Look' program to purchase one of my foreclosure listings in June. They literally snatched it away from a couple that had made a full price offer on this home in a nice South Minneapolis neighborhood. After letting it grow for six weeks they finally cut the foot tall grass on the vacant property.
First Look is part of the Minneapolis Foreclosure Recovery Plan, the component used to "pursue aggressive property acquisition". The plan is for the city to purchase for itself and it's Coordinated Development Partners nearly one third (over … (0 comments)
minneapolis market: I Wish I Would Have Bought Back Then
- 04/29/08 05:13 AM
I had the chance to purchase a house for $25,000 in 1976. My friend decided to sell it to his sister instead. Three years later it was worth $50,000. I finally bought a couple of years after, but found myself wishing I had bought a bunch of property "back then".
I was fortunate to carry three properties during the recent boom, but wish I had bought more "back then" in the 1990's. Many people wish they had bought just one back then. The good news: It is back then. Prices in some areas and for some properties have rolled back seven or … (1 comments)
minneapolis market: What Comes Down Must Go Up
- 04/24/08 07:44 AM
The first stage of the rebound is well underway in the Twin Cities real estate market. How it plays out remains to be seen but history and current trends give us good clues. Markets are cyclical and excesses, whether up or down, sew seeds bearing the opposite reaction. The harder the fall, the greater the rebound, be it in strength or length.
Anatomy of a Rebound
Stage one of the rebound is reduced seller activity. In 1989, listings processed began a ten year decline. This led to a real estate boom, starting several years later. In 1999, listings began a seven year incline. … (0 comments)
minneapolis market: Minneapolis Condo Conversion Boom; Why it Happened and How it Helped the City
- 06/15/07 08:50 AM
Minneapolis has seen an unusually high number of rental apartments converted to condominiums in the last few years. This has received considerable negative attention, since some tenants have been forced to move and some affordable rental units have been lost. But the conversions came at a time when they were desperately needed, and provided a near perfect remedy to market imbalances. A report prepared by a Minneapolis CPED intern identified 1,252 units converted from 2001 through 2005. As of the 2000 census, Minneapolis had a total of 168,624 households. The units converted amounted to less than three fourths of one percent … (0 comments)
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