According to a study that was done through collaboration between the Minnesota Association of REALTORS® and the Shenehon Center for Real Estate Education at the University of St. Thomas the current situation is not dire. Their assessment is as follows: “Strong economic conditions, historically low interest rates and affordable prices help keep housing values strong in Minnesota.”
I was intrigued by this assessment so I reviewed the most current MN Housing Report for 4th Quarter 2006 myself to check the status of the Minnesota real estate market. While there are some numbers that have dropped sharply in the housing prices, the historical number of the past few years is still up dramatically.
In Minnesota we have experienced double digit increases in property values for several years in a row. While this “Hot” market was exciting, it was not sustainable. But these numbers while leveling off, do not indicate the bottom has dropped out. The price change in home values across Minnesota since 2002 is still up significantly at 20% or higher.
So how will this affect the average Minnesota homeowner? If you bought a home in the late 1990’s or early 2000’s, your home has most likely appreciated in value. If you just bought a home in the past year, your home may not have appreciated at all. A home is a smart investment but a long term one.
If you are relocating to Minnesota, are looking for Homes for Sale in the north and east Twin Cities metro area and need help from a professional Realtor, give me a call. Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.