Minneapolis Housing Market Continues Upswing

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.


Image source: goodhousekeeping.com

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.


Twin Cities apartment market expected to remain strong

Image Source: realestateinasnap.com

Amid the rise of new apartment towers in Minneapolis come fears from observers that developers might have been overzealous with their projects. In January, the new builds have helped the city become one of only two cities in the country that saw the price of rent go down. According to real estate company Zillow, rent prices in Minneapolis fell to about $1,500 in January, which was 0.3 percent lower from the same period in 2014. Meanwhile, across the nation, rent prices increased a seasonally adjusted 3.3 percent.

Key players in Minneapolis real estate, meanwhile, have communicated that there is no cause for alarm. Investing in commercial real estate property in the city remains hot and the health of the apartment market in the Twin Cities is expected to keep for at least the rest of the year. Demand from baby boomers is expected to match the new builds and prop up the industry.

Image Source: startribune.com

Despite many announced or approved downtown Minneapolis large-scale apartment projects, real estate experts in the city are confident that the developers have not overbuilt. There is still a lot of capital that wants to enter the Minneapolis real estate market and the lack of properties up for sale is expected to drive prices up again.

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Steve Liefschultz is the chairman of the board of a real estate company in Minnesota. For more updates about the Minnesota real estate market, follow this Facebook page.