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Minneapolis, MN: Real Estate Market & Trends 2016

Gaining strength in 2016, the Minneapolis real estate market is making impressive moves. Home prices and appreciation rates outperformed the national average during the second quarter, while home affordability remained strong compared to other markets. The median home price for Minneapolis real estate was $242,400 during the second quarter of 2016, as opposed to the national average of $239,167. Although home prices cooled considerably during the second quarter, prices are still up from a year ago. In addition, the local economy continues to improve in Minnesota; unemployment and job growth improved faster than the rest of the country. The Minneapolis real estate market continues to attract a slew of investment activity, and the second-half of 2016 should see the trend expand.

Minneapolis, MN Real Estate Market Statistics:

Minneapolis real estate investments

The Minneapolis real estate market is expected to experience a flurry of investor activity in 2016. Equity gains for Minneapolis real estate continue to transcend the national average, which bodes well for Minneapolis real estate investors and homeowners, as home appreciation has now out gained the rest of the country nine years in a row. For those considering Minneapolis real estate investments, the following provides a breakdown of appreciation rates in previous years:

  • Homes purchased in the Minneapolis, MN housing market one year ago have appreciated, on average, by $18,164. The national average was $14,963 over the same period.
  • Homes purchased in the Minneapolis, MN housing market three years ago have appreciated, on average, by $54,817. The national average was $46,878 over the same period.
  • Homes purchased in the Minneapolis, MN housing market five years ago have appreciated, on average, by $98,686. The national average was $82,353 over the same period.
  • Homes purchased in the Minneapolis, MN housing market seven years ago have appreciated, on average, by $79,498. The national average was $77,054 over the same period.
  • Homes purchased in the Minneapolis, MN housing market nine years ago have appreciated, on average, by $45,146. The national average was $31,126 over the same period.

Price appreciation and principle payments in the last three years have boosted total equity growth since the recession. That said, the appeal for Minneapolis real estate investing continues to shine bright for investors and homeowners in 2016.

As of July 2016, there are currently 6,840 properties in the Minneapolis, Minnesota area in some stage of foreclosure. According to RealtyTrac, the number of Minneapolis foreclosures in the month of July was one percent higher than the previous month and 47 percent lower than the same period in 2015. The number of REO properties in Minneapolis increased 56.6 percent from the previous month, but dropped 11 percent from the same time last year. The Minneapolis real estate sector remains one of the best markets for scoring REO deals.

Minneapolis, MN: Real Estate Market Summary:

Minneapolis housing market

  • Current Median Home Price: $242,400
  • 1-Year Appreciation Rate: 6.3%
  • 3-Year Appreciation Rate: 22.4%
  • Unemployment Rate: 3.7%
  • 1-Year Job Growth Rate: 1.5%
  • Population: 407,207
  • Median Household Income: $69,111

Minneapolis, MN: Real Estate Market (2016) — Q2 Updates:

Minneapolis real estate investing

A steady combination of increasing home prices and appreciation rates continue to boost the Minneapolis real estate market in 2016, but other factors continue to assist the investing landscape. The local economy in Minnesota is improving faster than the rest of the country, with unemployment rates and job growth on track to surpass the national average. The unemployment rate for Minneapolis was 3.7 percent during the second quarter, as opposed to the national average of 4.9 percent. Although employment has held up and is on the upward trend, job growth continues to lag compared to the rest of the nation. However, a growing economy in the second-half of 2016 should help to enhance the Minneapolis real estate market.

Another component for Minneapolis real estate investors and homeowners to consider is new home construction. The second quarter saw construction levels rise 38.9 percent above the long-term average, while single-family permits sputtered at 4.9 percent in comparison to the national average of 10.6 percent. Furthermore, new housing construction for Minneapolis real estate is on the rise relative to last year, suggesting that the local housing inventory has stabilized. That said, Minneapolis remains one of the top housing markets for residential redevelopment.

Along with being investor-friendly, the Minneapolis real estate market is also one of the more affordable. The average homeowner in the Minneapolis housing market paid 9.2 percent of their income to mortgage payments during the second quarter, whereas the national average paid 15.8 percent. In fact, the income-to-monthly mortgage payment ratio for the Minneapolis housing market is actually better than its historic average of 11.5 percent. Investors looking to take advantage of the Minneapolis real estate market in terms of home affordability, including its rental market, should consider college towns–and the idea of renting to college students.

Moving forward, the Minneapolis real estate market is expected to grow in congruence with the national average over the second-half of 2016. The National Association of Realtors (NAR) has forecasted weaker price growth in Minnesota than in the U.S. in the next 12 months, with price expectations for Minnesota real estate anticipated to grow by 3.5 percent in the second-half, as opposed to the national average of 3.6 percent. The Minneapolis real estate remains one of the more tantalizing markets for investors and homeowners alike.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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