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.
# posted by
Tara O'Brien @ 10:16 PM
