The past year has been massive for the Minneapolis housing market, having achieved growth levels it has not seen in the past seven years. This is good news for the real estate industry as a whole, especially that it can now confirm the end of the housing bubble that has plagued the country for years. Experts predict that the upswing will definitely continue in the next several months or even to a full year.
Image source: minneapolis.org
Minneapolis is currently one of the strongest metro cities in terms of economic performance, which easily translates to great opportunities for the real estate sector to make a rebound. Almost every market indicator for the city has improved dramatically since the recession. In fact, Minneapolis is currently one of the top major cities for job creation, with a very low unemployment rate of just 3.6 percent. This means the majority of the residents have high purchasing power, which allows them to afford big purchases as major as real properties.
At this point, the only thing holding back (but is actually a good indicator) the further upturn of the Minneapolis housing market is the relative paucity of properties that can be sold on a commercial level. Current demand is so high that it puts property owners and developers in both awkward and rewarding situation. With top universities, green businesses, excellent public health facilities, low unemployment rate, and a generally agreeable community culture, Minneapolis has been a hot spot for new homebuyers. Experts anticipate that median home sale prices will rise to at least 6 percent this year while interest rates will only increase slightly to more or less four percent. The Minneapolis housing market has been in its healthiest state in about ten years.
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Steve Liefschultz is the chairman of the board of the Remada Company, a real estate development and management company in Minnesota. Know more about his professional background here.
History has shown how various factors and events affect the performance of the real estate market. For instance, the 2008 financial crisis saw many homeowners missing defaulting on their mortgage payments and their dream homes seized. Meanwhile, the entry of millennials in the workforce set off the increase in demand for rental properties, as this new generation favors renting than buying homes.
And lately, the growing importance of environmental protection has spilled over to real estate as an increasing number of homebuyers are opting for energy-efficient homes and sustainable communities. Thus, it comes as no surprise that Minneapolis is one of the cities that is attracting eco-conscious homebuyers. The City of Lakes is especially popular among property buyers who would like to bike their way to work to save on gas use and at the same time help conserve the environment.
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Minneapolis is the perfect home for these “bike-happy” buyers as the city was named the most bikeable city in the U.S., according to a recent survey by residential real estate firm Redfin. The city’s growing network of bike lanes features more than 188 miles of on-street bikeways and 92 miles of off-street trails. It also has a very widely used bike sharing system, Nice Ride Minnesota, which has more than 1,550 bicycles for rent at 170 kiosks in and around the metropolis and its neighboring city of St. Paul. And aside from the Redfin recognition, Minneapolis is also the only U.S. city included on the worldwide bike-friendly list of Danish Design firm, Copenhagenize Design Co.
With biking central to its identity, Minneapolis can look forward to a healthy housing market as homebuyers who are looking to save on gas and at the same time want to help preserve the environment choose homes in the city rather than in the suburbs.
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Minnesota-based executive Steve Liefschultz is a real estate and banking expert. For more news and updates about the Minneapolis real estate scene, follow this Twitter account.