Good News in Housing For Minneapolis!

By
Real Estate Sales Representative with Coldwell Banker Burnet

A recent study by Economy.com states that the housing cycle should hit the 'bottom' later this year. In many parts of the country, and localized in certain areas of the Twin Cities, home prices have dropped by over 32% from the peak in the first quarter of 2006.

Think we have had it bad here in the Twin Cities? How would you like to live in Naples, Fl where prices dropped by 70.1% and a bottom is not expected to hit in that market until the fourth quarter of 2010. Other areas in Florida and California have seen prices fall by over 50%.

From what I have seen in Minneapolis and the overall Twin Cities is this: certain pockets and neighborhoods have been hit hard. North Minneapolis is in tough shape. You can drive up a city block and see four or five  For Sale signs. Suburbs that were experiencing growth through building, like Maple Grove, Woodbury, Andover, New Prague, etc. have been punished. I am aware of situations where people bought their home in early 2006 in the $650k range and today they would be likely to get in the $450 neighborhood --- why? because builders, desperate for cash, have been fire saling their inventory. When you can get a fire saled brand new house for next 2 nuthin, why would you pay a premium for a gently used home?

Recently, year over year home sales of existing homes increased. That is a good sign. Here will be the best sign for you to look for: housing prices of existing homes increase in year over year statistics. This will mean we have hit the bottom and now we are starting a trend upwards....or at least flattening.

Got any horror stories on pricing drops in your area? Comments?

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