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Average Listing Price                       Median Sales Price                              Average Price/sqft             Sales     

 $258,002                                                      $139,025                                               $165                                   1,728

 -0.1%                                                           +3%                                                            +26%                                +25.4% 

More Minneapolis Market Trends

The median sales price for homes in Minneapolis MN for Jan 11 to Mar 11 was $139,025.  The average listing price for Minneapolis homes for sale on Trulia was $258,002 for the week ending Apr 27, which represents a decline of 0.1. Average price per square foot for Minneapolis MN was $165, an increase of 26% compared to the same period last year.

Pending sales in the Twin Cities metropolitan area decreased 17.6 percent from March 2010 to 4,162 purchase agreements signed.  Inventory levels shrunk by 4.5 percent the lowest March inventory count since 2005. This trend will help stabilize prices and restore balance to the market.  Market activity can vary greatly from one segment to the next. Although overall purchase activity was down 17.6 percent, the foreclosure segment saw a 31.3 percent jump in pending sales and a 29.9 percent jump in closed sales. Foreclosure prices decreased 11.0 percent to $105,000; short sale prices decreased 6.9 percent to $134,950; and traditional prices decreased 3.5 percent to $192,000. While the bargain status of lender owned or REO properties unquestionably helped their surge among consumers.

When you’re ready to start looking for a home in Minnesota please call us at Realty Group, Inc we are your solution for real estate in Minnesota.

Stats and Graph courtesy of Trulia.com

 The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 5.1 percent to 94.1 in March from a downwardly revised 89.5 in February. The index is 11.4 percent below 106.2 in March 2010; however, activity was at elevated levels in March and April of 2010 to meet the contract deadline for the home buyer tax credit. The data reflects contracts but not closings, which normally occur with a lag time of one or two months. “The index means modest near-term gains in existing-home sales are likely, which would be even stronger if tight mortgage lending criteria returned to normal, safe standards”. Says Lawrence Yun, NAR chief economist. “Based on the current uptrend with very favorable affordability conditions, rising apartment rents, and ongoing job creation, existing-home sales should rise around 5 to 10 percent this year with sales growth of lower-priced homes likely to outperform high-end homes. That means the price trend will reflect more homes sold in the lower price ranges,” Yun said. “The good news is that recent home buyers are staying well within budget, leading to exceptionally low loan-default rates among home buyers over the past two years,” he added.

When you’re ready to start looking for a home in Minnesota please call us at Realty Group, Inc we are your solution for real estate in Minnesota.

Thanks to a slight improvement in the U.S. economy, rising employment and more income, many real estate markets could be considered healthy. Minneapolis is one of them, according to Gathering Strength: The Healthiest Markets for 2011 from Builder online. The Minneapolis-St. Paul real estate market was ranked sixth according to their index. Here is what Builder had to say about the Twin Cities real estate market:

2011 Building Permit Forecast: 9,403

Percent Change in Building Permits: 66%

Foreclosure filings actually fell in Minneapolis last year, though banks still have inventory to work through.  The current median existing home prices in Twin cities, which stood at about $167,000 at the end of last year, have fallen to $142,500. The market enjoys decent household growth for a Northern city, though most of it comes from natural growth. It still has a hard time attracting residents.

The housing industry in Minneapolis, a major hub for medical technology, is supported by a relatively high median income level among residents. Six Fortune 500 corporations make their headquarters within the city limits of Minneapolis: Target Corporation, U.S. Bancorp, Xcel Energy, Ameriprise Financial, Thrivent Financial for Lutherans and PepsiAmericas.  Apart from government, the city's largest employers are Target, Wells Fargo, Ameriprise, Star Tribune, U.S. Bancorp, Xcel Energy, IBM, Piper Jaffray, RBC Dain Rauscher, ING Group, and Qwest

When you’re ready to start looking for homes for sale in MN please call us at Realty Group Inc.  We are your solution for Minnesota real estate.

While no one can predict with great accuracy when the recovery will start or how much time it will take to get back to the top, there can only be a few possibilities.

By taking into account the 5 shapes of a real estate recovery, you can better plan your future. When the real estate market recovers, what shape will it take?

1. Straight Line - Lackluster performance with occasional signs of life?  
2. U - Bottoming out into a prolonged trough?
3. V - A quick rise back to the top?
4. W - A double dip before powering ahead?
5. Staircase or upward incline - A fairly steady rise?

The biggest price explosion happened during the Bubble Years, roughly between 2004 through 2006. As all bubbles do, this one burst.  At first, it seemed like a much-needed correction. A temporary blip that would bring prices down to 2004 levels before the resumption of good times. Surely, prices couldn’t slip much lower? Well, okay, maybe just a little bit lower ... a short-lived overcorrection destined to test the bottom before zooming back up. Just the opposite occurred. The overcorrection turned into a crash.

The future is always beginning now

In March 2011 alone, Minnesota real estate in Minneapolis and St. Paul saw prices decline 16%. Though most of the decline was attributable to distressed homes — foreclosed properties and short sales. But rise of 34% in sale of those Rep properties. No one knows when the downward pressure will stop, or when it stops, how long it will take for the market to climb back.

The market could go up a little, then down a little, and up again ... with no clear direction. Don’t despair, because this could actually be a good sign.

• The market could sink into a trough and stay there for a very long time.
• The market could zoom up.
• The market could revive for a while before going into a double dip.
• The market could start improving year to year with a predictable appreciation rate — in either a straight incline or a stair-step approach.

A hopeful sign would be if the market goes up one month, then down the next, up the month after that, and on and on for several more months or possibly a year or more. The forces in play — from home seller and homebuyer to appraiser and lender — will be ‘testing the market’. At the same time, they’ll be rebuilding confidence. Once confidence is restored, then what? In 2011, another million properties are expected to be foreclosed. It’s also estimated that banks are holding onto a million previously foreclosed homes, called ‘shadow inventory’. They’re waiting to see a bounce back in order to recoup higher proceeds. Only time will tell. How long do you want to wait to sell your house? Only you can answer that question. But now that you know what the future might look like, the better armed you’ll be to make that all-important decision.

When you’re ready to start looking to buy a home in MN Mpls and St. Paul area please call us at Realty Group Inc.  We are your solution for MN real estate.

The number of vacant homes reached a high early last year in Minneapolis and St Paul.  It might not be the plan, but is an empty home necessarily filled with difficulties for a determined seller?  Like the proverbial half-empty, half-full glass, experts say there are positive and negative aspects to marketing vacant properties. As long as you are working with a good real estate agent like ours  at Realty Group Inc. you can find the upside to the blank canvas you have in front of you to make it your own space. Also as a seller, Realty Group Inc. can help you to declutter or reorganize in a way its more appealing.

Here is some insight for both sellers and buyers on how to look at the empty home:

Motivation matters. An empty home means the owner has moved on, and now might be paying mortgages on a new home and an old one. But in this market, buyers shouldn't assume that means the owner is more motivated than other sellers. It will depend on their personal circumstance. You can just as easily find a motivated seller still living in heir home.

View without clutter. Although a "homey" home, perhaps with the sweet smell of baked cookies wafting through the air, is a listing agent's stereotypical dream, stark spaces do have advantages. DE cluttering the rooms and taking out personal items helps buyers see themselves living there.

Use your imagination. While clutter-free is a plus, the downside of empty spaces is that they deprive buyers of a vision of what it would be like to live in a particular home, a critical factor in prompting a purchase. The typical buyer isn’t that visual and need to see some furniture in place.

When you’re ready to start looking for homes for sale in MN please call us at Realty Group Inc.  We are your MN real estate experts.

Home Mortgage interest deduction: Home owners can take an itemized deduction on interest paid on a mortgage or mortgages of up to $1 million for a principal residence and or second home.

Property tax deductions: Homeowners can also deduct from their federal income taxes the state and local property taxes that you pay on the home.

Home equity loan deduction: Homeowners can borrow up to $100,000 against the equity in their home and deduct the interest as an itemized deduction. The money can be used for any purpose, such as paying off high-interest credit card debt. In contract, the interest on credit card debt is not deductible

Deductible home buying expenses: Several closing costs in a home purchase are also deductible, such as loan origination fees (points), prorated interest on a new loan, and prorates property taxes paid at settlement.

$250,000/500,000 home sale exclusions…homeowners who have lived in their home for two of the prior five years prior to sale do not have to pay income tax on the majority of their profit-$250,000 for single home owners and $500,000 for married homeowners who file jointly.

The Minnesota Legislature passed a law spring of 2008 that would allow qualified veterans to be excluded from paying some, or all, of the property taxes on land homesteaded by the qualified veteran. Qualified veterans honorably discharged from the United States armed forces due to service-related injuries rating 70% or higher are eligible on two levels:

• $150,000 market value exclusion is being offered to veterans with a service-related disability rated at 70% to 100%.

• $300,000 market value exclusion is being offered to veterans with a service-related disability rated as being total and permanent.

So all this being said… this is the perfect time to call MN Real Estate and let us find you a new home for sale in Minneapolis and St. Paul area today so next year you can reap the tax benefits of ownership!

• The vast majority of both home owners and renters say that owning a home is a smart decision over the long term. Even in today's challenging economy, 95% of owners and 72% of renters believe that over a period of several years, it makes more sense to own a home.
• Homeowners are much more likely to be satisfied with the quality of their family and community life than renters. While more than half of the owners (56%) are "very" or "extremely" satisfied with the overall quality of their family life, only about one-third (36%) of renters report the same levels of satisfaction. Also, 43% of homeowners are "very or "extremely" satisfied with their community life, compared with 30% of renters.
• An overwelming majority of homeowners are happy with their decision to own a home. A full 93% of owners surveyed would buy again.
• Most renters aspire to home ownership. the majority of renters (63%) say they are at least somewhat likely to purchase a home at some point in the future. Among them, young adults (18 to 24 yrs old)have the strongest aspirations for home ownership.

The rent rates in Minneapolis/St Paul and surrounding cities are anywhere from  $800-$1500 for a single family 3 bed 2 bth home . Now take a look at those numbers for a moment. If for example one of our agents at Realty Group, Inc were able to help you find a home for sale for $100,000. with a 20% down payment your payments without insurance and taxes would be approx. $465.00 a month. Now say you really cant find what your looking for in that price range lets bump it up tom the median sales price of $142,500. Again with 20% down your payment on a 30 yr fixed loan at the current rates would only be $661.66 plus taxes and insurance. All that being said if you're a renter and are financial able to buy a new home in the MN real estate Minneapolis/St. Paul or surrounding areas it's a GREAT time.  There is more information on the different types of loans on our website MN Real Estate and our agents can help you get Pre Approved today.

The eighth quarterly "Allstate-National Journal Heartland Monitor Poll: The American Dream" revealed that nearly nine out of 10 homeowners say they would buy their same homes again. Among those with homes with lost value, the same percentage said they would buy their home again. Also, seven of 10 Americans say they would advise a friend or family member to buy a home as a long-term asset. Minnesota ranks high on the “Best places to live in the US”. We here at Realty Group Inc agree completely.

The spring could be a good time to take that advice on buying a home in Minneapolis or the surrounding areas. Also, with improvements in employment and manufacturing and other economic sectors, bargain home prices and affordable interest rates could light a fire under buyers who've been sitting on the fence. low the pace in February 2010, according to the National Association of Realtors (NAR).

For more information on homes for sale, or selling your home please visit our website MN Real Estate or call the office today we are ready to make your American Dream come true.