Minneapolis Condos & Lofts Foreclosures

  I have been working with plenty of Buyers these days that are asking about condo and loft foreclosures in downtown Minneapolis.  Many of them want to know how to go about seeing these units and more importantly if they are worth checking out.  Others are asking the big picture question everyone seems to want to know which is: where is this market going?  My response on this has been a few stats from 2008 and also some qualitive data that I see with the Buyers and Sellers that I come into contact with.  Looking at a few stats 2008, downtown Minneapolis started out with roughly 800 or so listings, as of 12/1/2008 70% of those listings have gone pending or sold which is roughly the same amount of activity that has occured in 2007–not amazing year over year numbers however not bad given the times.  The average (mean) price of a new-construction condo in 2008 is currently 10.8% higher than 2007; $389,094 in 2008 vs. $351,205 in 2007 for a never-lived-in 1-2 bedroom, 1,450-square-foot Downtown home.  Couple this with the fact that every weekend when I hold an open house I get the same consistent buyer demographic: everyone from all walks of life wants to make the move downtown.  Bear in mind these events are happening in trying economic times.  My point is despite this ecomonic period buyers are still making the decision to purchase downtown.

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3 Comments

Filed under Condo News, Minneapolis Condos, Minneapolis Real Estate

3 responses to “Minneapolis Condos & Lofts Foreclosures

  1. It’s impressive that prices are up. I imagine the appeal of avoiding commuting is still strong and not everyone is upside down these days – although it sounds like it if follow mainstream coverage of the industry.

  2. I agree, seems like the downtown market is picking up steam! Let’s hope it continues, good foot traffic over here at 730 lofts.

  3. In San Diego, median prices have risen for three consecutive months. Home buyers and investors are out in droves, snapping up the discounted foreclosure properties, and often bidding them up well over asking price. Inventor is actually very tight. The great number of pending short sales which are still listed as “active” in the San Diego MLS effectively overstates the amount of inventory. For example, in Rancho Penasquitos, a suburb of San Diego, there are 68 total listings, 33 of which are short sales… and nearly all of the short sales have multiple offers pending lender approval. 4 of the 68 listings are REO foreclosures, and 31 are straight sales by private sellers. Last month there were 40 homes sold. So that means there is currently less than a 1-month supply of homes for sale… excluding short sales that would be sold already if they could get immediate lender approval. This bodes well for the future of the market, if only the banks would get their acts together!

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