Table of Content
- Neighborhood Housing Markets
- Home offer insights for Minneapolis
- Report: Median Twin Cities home price rose to a record $280,000 in 2019
- Minnesota Teacher Accused Of Sexual Conduct With Elementary Students
- Twin Cities housing market offering mixed blessings for buyers, sellers
- Minneapolis Real Estate Market: Prices, Trends, Forecast 2022-2023
The Twin Cities currently has less than seven weeks' worth of inventory, whereas a balanced market has four to six months' worth. However, over a decade of underbuilding has resulted in fierce competition for the majority of listings. Prices are well above those reached in the housing bubble more than a decade ago. But real estate agents say current prices simply reflect demand exceeding supply, not lax lending standards or irrational expectations. Not only are homes selling for more, but they're spending less time on the market. Half of the homes for sale go under contract within eight days of being listed, which is the fastest time in at least 14 years.
Currently, the Twin Cities has about one month's supply of inventory. Four to six months of inventory is considered a balanced market. According to the associations, supply rebounded to pre-pandemic levels last month, but demand has increased. Pending home sales are up 34% from April 2020 and exceeded 2019 numbers by 8.2%.
Neighborhood Housing Markets
With a strong economy and low mortgage rates, buyer activity was very strong last year. Supply and demand continued to favor sellers leading to a rise in prices. In October 2022, Minneapolis home prices were up 1.0% compared to last year, selling for a median price of $328K.
The average sales price in the same period is higher, at $507,800. The Zillow Home Value Index, which measures only the middle price tiers of homes, sets the cost of a typical home in the United States at $344,141. Home values increased 20% in the twelve months between April 2021 and May 2022. Meanwhile, the median household income in the United States is $67,521 a year. This means the median family can only afford a mortgage of around $250,000 and may find themselves being priced out of owning a home. In terms of months of supply, Minneapolis, or the entire twin cities housing market can become a buyer’s real estate market if the supply increases to more than five months of inventory.
Home offer insights for Minneapolis
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However, Minnesota’s policies have led to faster job growth, wage growth, and population growth than Wisconsin. Yet the state has continued to rank well in rankings for quality of life. That makes the Minneapolis real estate market a better deal than the property is theoretically more business-friendly Wisconsin. The Zumper Minneapolis Metro Area Report analyzed active listings last month across 4 metro cities to show the most and least expensive cities and cities with the fastest growing rents. Maple Grove was the most expensive city with one bedrooms priced at $1,510 while St Paul was the most affordable city with one bedroom priced at $1,050. Studio apartments are the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage.
Report: Median Twin Cities home price rose to a record $280,000 in 2019
Marco Santarelli is an investor, author, Inc. 5000 entrepreneur, and the founder of Norada Real Estate Investments – a nationwide provider of turnkey cash-flow investment property. His mission is to help 1 million people create wealth and passive income and put them on the path to financial freedom with real estate. He’s also the host of the top-rated podcast – Passive Real Estate Investing. Remember, caveat emptor still applies when buying a property anywhere.
In any case, that isn't going to happen, at least not in the next twelve months. This region is very much skewed to sellers due to a persistent imbalance in supply and demand. Minneapolis offers an ideal mix of a strong job market, affordable real estate, a large rental market, and a limited housing supply. These factors will drive up property values and rental rates growing at a healthy clip for years.
Minnesota Teacher Accused Of Sexual Conduct With Elementary Students
The typical 1,879 square foot home has a price tag of $157,828. The homeownership rate is also among the highest in the nation, at 74.8%. However, Mississippi also has the nation's highest poverty rate, with a fifth of its inhabitants living below the poverty line. The October median — which means half the homes sold for more during the month and half sold for less — also is 5.2 percent lower than September, the report found.
In July 2022, the number of new listings in St. Paul decreased by 23.7 percent. Paul Housing Market” released by the Minneapolis Area REALTORS®. The report compares the St. Paul housing metrics from July 2022 with July 2021. In July 2022, the number of new listings in Minneapolis decreased by 22.1 percent.
West Virginia, which has the lowest typical-house cost, also has the highest homeownership rate, with 79.6% of residents owning their own home. According to Redfin, a real estate company, the St. Paul housing market is very competitive. Many homes get multiple offers, some with waived contingencies. The average homes sell for about 2% above the list price and go pending in around 14 days.
On average, homes in Minneapolis sell after 28 days on the market compared to 24 days last year. There were 636 homes sold in October this year, down from 912 last year. Homes in Minneapolis receive 2 offers on average and sell in around 25 days. The average sale price of a home in Minneapolis was $321K last month, up 1.7% since last year. The average sale price per square foot in Minneapolis is $196, up 2.1% since last year. Prices rose at double-digit rates in neighborhoods and communities with less expensive housing that appeals to first-time homebuyers.
The typical home in Idaho costs $466,435 and measures 1,932 square feet. However, homeownership is also high, with 70.4% of residents owning their homes. The month's supply of housing inventory in Minneapolis, the twin cities region, and the entire state of Minnesota is very tight. One of the defining features of older Rust Belt cities is that they’ve been heavily built up for decades. In the case of the Minneapolis housing market, geography and existing construction constrain the new housing supply.
We have a large pool of buyers sitting on the sidelines, waiting for new inventory to come to the market. Any university creates an excellent opportunity for real estate investors. Every college brings in a large number of students who will need to rent a property close to the university. The rent students pay is based on demand for the school, not the state of the local economy. For investors targeting this niche, Minneapolis rental properties are a great addition to your investment portfolio because of the diverse opportunities this market provides.
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