About 6 months ago, my family was looking around the Twin Cities for a house and it was a tough going. We put numerous offers on houses only to see them outbid consistently, many times thousands over asking price. This does not appear to be letting up.
No one seems to be having problems selling their house these days, but finding one to buy is proving difficult in this tight market. According to a forecast released by the Shenehon Center for Real Estate at the University of St. Thomas’ Opus College of Business, the Twin cities residential housing market will continue to tighten up throughout 2017. Median priced homes are predicted to rise 5 percent this year alone.
Due to the markets turning in favor of Twin Cities sellers, another popular trend is the use of a flat fee real estate company rather than a traditional agent (check out some benefits of flat-fee realty companies).
Affordable Areas Near The City Are Proving Most Attractive
Twin Cities home buyers, especially younger buyers in the market for the first time, are looking for the urban amenities that they want, at an affordable price. This general consensus seems to be the one that’s leading the Twin Cities market into price increases and high demand.
Some of the hottest markets right now include areas that describe exactly that. Areas like Richfield, Crystal, Brooklyn Park, and Northeast Minneapolis neighborhoods all have the urban amenities and access, and until now were relatively inexpensive to live in.
This push for affordable housing with nearby proximity to what the city has to offer has resulted in these communities with lower priced houses showing growing demand that doesn’t seem to be stopping. Because of this, pricing increases are quickly going beyond what young homebuyers can afford in these areas.
Neighborhoods Seeing Rapid Growth
Here’s a few areas that are seeing some attention as of late:
Highland Park, St Paul
Proving to be a very popular area on the border of St Paul/Minneapolis. Plenty of easy access to attractions like Minnehaha Falls and the bike trails, there’s plenty of fixer uppers, and prices continue to rise.
Windom Park, NE Minneapolis
After many who’ve experienced the Uptown scene move onto greener pastures, many seem to be looking in the Northeast Minneapolis area for homes. Although housing is going like hot cakes up here, the Windom park area is tucked behind the Quarry with great amenities and homes that can fit budgets a bit above the 200k range.
The Kingfield neighborhood is tucked in the southwest corner of Minneapolis and is home to an insanely popular foodie scene. Homes have been rising in price astronomically and its not hard to see why with the close proximity to restaurants, the lakes, and easy access to 35W. This neighborhood will continue to grow in demand.