Minneapolis Condo Hype. What Are the Facts.

“Over Built. Building like crazy. Who is going to buy them all? Too much inventory. Prices going down.” This is what I hear all the time from people I run across and I tell them that I’m a Realtor that focuses just in the Minneapolis condo and loft market.

I would like to address all the “So called Minneapolis Condo Hype” with the facts about the market. Now lets take these facts below and see if all the noise in the market is opportunity is knocking!

In the Downtown Journal which is the local Minneapolis newspaper that publishes a section called the “Condo Watch” in every issue. This pipeline has 44 projects in the pipeline which may to some seem like a lot and to some might not but the BUZZ in Minneapolis Real Estate is that this market is over built, to many condo project, etc…. The True reality is that out of the 44 listed projects 17 of them aren’t even built or there is fabulously no momentum in being built. 21 out of the 44 are projects that I can bring a buyer in and they can move in with in 120 or sooner. But the big message that I want to get across is that out of the 21 in the pipeline there are 9 projects that have less than 10 units remaining. So in roughly the 3rd quarter of 2008 all of them should be closed out. Which that will leave roughly 12 projects left for buyers to choose from! Yes new projects will pop up here and there but this is also great for the re-sale market that has been hurt that last few years!

Downtown Minneapolis has still been a very active market compared to the rest of Minneapolis.

• Closed sales are up 105% YTD form 07 to 08
• Percent of Original List Received: YTD for 01 96.2% / 99.1% +3.0%
• Condo Inventory: Feb 07 543 units and Feb 08 502 -7.6%
• Average Days on Market: 210 days
• Average sales Price: $293,440 4th highest in the city