Minnesota Real Estate Market Trends & Analysis

Despite hosting some of the countries most inhospitable winters, the Minnesota real estate market is currently the epicenter of investor attention. In fact, few states piqued investor interest more so than Minnesota earlier this year. Thanks, in large part, to the Twin Cities (St. Paul and Minneapolis), real estate in Minnesota has become something of a commodity.

As the home of several Fortune 500 companies—Target, Best Buy, General Mills, 3M, UnitedHealth—Minnesota benefits greatly from an incredibly strong economy. Minneapolis and St. Paul, in particular, have both the second-lowest unemployment rate and second-highest job openings per person among the top 50 metros. Strong economic indicators, in association with affordable housing, have facilitated a healthy housing market that looks to be able to benefit everyone for the foreseeable future.

Minnesota Real Estate Fees & Regulations

Real Estate

Closing Conducted by: Title Companies, Lenders, Real Estate Agents, Attorneys
Conveyance: Warranty Deed

Foreclosure Procedure

Primary Foreclosure Method: Non-Judicial
Process Period: 2 - 3 months
Notice of Sale: Sheriff
Redemption Period: 6 Months

Taxes

Income Tax: 5.35% - 9.85%
Corporate Tax: 9.80%
Sales Tax: 6.88%
Estate Tax: 13% - 16%
Inheritance Tax: No
Median Property Tax: 1.05%
Property Taxes by County: http://www.tax-rates.org/minnesota/property-tax#Counties

Average Transactional Costs

Closing Cost: $2,436.00
Transfer Fee: Deed 0.33%; Mortgage 0.23%
Origination Fee: $1,836.00

Overview

  • Median Home Value: $238,800
  • 1-Year Appreciation Rate: +5.0%
  • Median Home Value (1-Year Forecast): +2.4%
  • Median Rent Price: $1,600
  • Price-To-Rent Ratio: 12.43
  • Average Days On Market: 62
  • Unemployment Rate: 3.3% (latest estimate by the Bureau Of Labor Statistics)
  • Population: 5,611,179 (latest estimate by the U.S. Census Bureau)
  • Median Household Income: $65,699 (latest estimate by the U.S. Census Bureau)
  • Percentage Of Vacant Homes: 10.40%
  • Foreclosure Rate: 1 in every 5,997

Minnesota Foreclosure Trends & Statistics

Tax Lien Investing

  • Tax Lien or Deed: Tax Deed State (used to be Tax lien State)
  • Interest Rate: Now no interest anymore because of switch to Tax Deed State)
  • Redemption Period:1 Year