Long-Term Versus Short-Term Value

In Minneapolis Real Estate

January 2020

 

 

My area of expertise is Southwest Minneapolis.   I also know the SW-Adjacent areas, moving east along the creek to the Falls and Mac-Groveland.

Here’s our real estate future, as I see it – for the next three months, the next three years, and the next nine years:

  

The Minneapolis census of 2010 predicted that a huge influx of

people was coming to the Twin Cities. 

That is why the Minneapolis 2040 plan was written.   The City of Minneapolis knew that we needed to prepare for all these people… And one response we can see already has been the booming construction of tall rental buildings.   Everywhere you look, tall rentals are being built.

What happens in three years when the millennials who moved into those rentals now want children and a yard?   

Minneapolis prices are going to skyrocket. 

Okay, so, yes, I am often teased for being too “optimistic.”  My personality might be called, “Pollyanna/Adjacent.”  

But seriously…  This huge, sudden influx of people is going to result in rising prices for land.  Right?   Prices will RISE for single-family-homes on single-family parcels.

The only question – is when?   When will this sudden increase in demand happen? 

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The surprising point I want to make here is not about the long-term, it’s about the short-term. 

In the short term, the most CURRENT thing I can say… (on January 6, 2020) --- is that there are a LOT of beautiful homes on the market just begging for offers right now…

Right now, and for the next two months, from now until the 2020 Spring Market Begins…

Prices are low.  

And here’s my prediction –

I think that in 10 years, we will look back on this season as being an historic low.   January 2020 will be seen as the last low-point before Minneapolis prices began shooting up.

I think values are about to start shooting up this April…

And after the election in November 2020…

Minneapolis is going to flourish.

But salaries have gone up!   People make more money than they did 20 years ago!

Note this too -- this increase in Housing Affordability has increased drastically in the last 18 months, when rates fell again from the historic 4% low to below 3%...   

Despite the heat in this market, it’s still good to be a buyer in Minneapolis. 

And it is GREAT to be a seller.

Know this:  The population in Minneapolis is going up, and thus the demand for

Single Family Homes will continue to rise. 

Interest rates, however, will not always be this low.

Call me - anytime.     612.845.5273.    

I love to talk about this stuff.

Larry

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