Tara O'Brien's Minneapolis Real Estate Update: February 2008

Edina Realty in and around Downtown MinneapolisAre you looking for a home in the Minneapolis, Minnesota area? Our real estate professionals are ready to assist you with all your home buying and selling needs in Minneapolis and surrounding communities. At the Edina Realty Downtown Minneapolis Office, we're not just wired, we're personally connected. Successful outcomes depend on access to real information and value-added service that enables effective decision-making for the best results. We deliver insight, analysis and expertise that provide our REALTORS® and clients the competitive edge. And we do so in the manner and medium of our customers' choosing.At Edina Realty Downtown Minneapolis, we offer a wide variety of services for all of your home buying, selling and ownership needs. Whether you're looking for a single family home near a good school or you have your heart set on lakefront property, our network of experts can help. Our REALTORS® work directly with builders, rural properties, upper-bracket homes, condos and townhomes, are familiar with auctions, and much more. We specialize in the following areas: Downtown Minneapolis, Northeast Mpls, Camden, South Mpls, Edina and St. Louis Park, and are happy to serve your real estate needs wherever and whatever they may be.

Labels: condos and lofts, minneapolis condos, real estate sales, urban living

How Many Condos Are There??
There were over 3,000 homes in established Downtown buildings before the building boom of the current decade.? There are over 4,700 homes in newly-built condo/loft buildings and condo conversions – more than 4,200 are sold, owned and occupied. 1 (pending sales & sold/closed)? There are 317 previously-owned townhomes, lofts & condos currently for sale (Feb 2008).2 ? Less than 150 homes are currently under construction, all are scheduled for completion in the next 12 months, more than half are sold.1 (pending sales)? Developers have plans for 3,000-4,000 future units in over a dozen identified locations – construction has not started at any. Sales have started at one location, accounting for fewer than 200 units.1

Absorbing Downtown Condos?
With less than 600 newly-built homes for sale (see above), all will be sold within 2 years if the market maintains 2007 absorption rates.1? For previously-owned homes, assuming a 2007 absorption rate, there is currently less than 11 months of inventory.2

Continued Demand Supports Mild Appreciation?
In 2006, 359 previously-owned homes sold – in 2007 there were 367.2 (pending sales & sold/closed)? The average sale price for previously-owned homes year over year increased over 2% to $303,696. 2 (sold/closed)? In 2006, 440 newly-built and converted homes sold – in 2007 there were 357.2 (pending sales & sold/closed)? The average sale price for new construction remained virtually unchanged (-0.3%) over the same time at $338,860. 2 (sold/closed)

Mortgage Interest Rates Provide Buying Power?
Today’s are at historic lows: Jan 1983 = 13.40%, Jan 1993 = 8.12%, Jan 2000 = 8.32%, Jan 2008 = 5.00 - 5.75%.? The combination of inflationary concerns and the presidential election should keep rates low into the summer.? Assuming a $250,000 mortgage, today’s buyer has over $12,000 more buying power than if rates were ½ percent higher.

Don’t DelayThere is no such thing as a bad market – conditions will favor either sellers or buyers. Current conditions make it a great time to buy your new urban home. If you’d like to learn more about real estate in Downtown Minneapolis, don’t delay. Call or click on a Downtown REALTOR© at the Edina Realty Downtown Office – listing more condos and bringing more buyers than any other Downtown office.2
1 Based on information from the Downtown Journal Condo Pipeline & Condo Vitals, Sales Center Information, development web sites, and the REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC., 2Based on information from the REGIONAL MULTIPLE LISTING SERVICE OF MINNESOTA, INC.