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Nick, Home Buyer in Minnesota

I'm thinking about buying in a downtown loft area in Minneapolis. Is this market safer than the typical?

Asked by Nick, Minnesota Sat Dec 29, 2007

suburban market?

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I'm assuming you are talking about the market's financial safety vs. public safety...

Downtown Minneapolis has had a building boom that rivals any suburb... there's a lot of finished projects as well as many being built or in the planning stages. According the the Minneapolis Area Association of Realtors, as of December there were 544 townhomes & condos for sale in Downtown Minneapolis alone!

Through November 2007, there had been a total of 514 sales for the entire year, so they have more than 12 months of inventory on the MLS... and many more units that are not on the MLS (new construction) that would take that inventory number significantly higher.

That being said, the Downtown Minneapolis market should be strong over the long term as the city increases its permanent-resident amenities (shops, grocery stores, etc) and my belief is that with the aging boomer market we will find renewed interest in living in the big city.

I'd argue that regardless of where you are looking, your time horizon is just as important. This market weakness will continue through 2008 and I've been counseling all my buyers to not expect any noticeable appreciation until 2009 or 2010.

There's a lot more that can be said but without knowing more about your interests, it's hard to know what to tell you beyond what I've said above. Feel free to contact me if you have further questions.
Web Reference: http://www.AaronSOLD.com
1 vote Thank Flag Link Sat Dec 29, 2007
Nik,

I am a loft owner in the North Loop of Minneapolis. I have lived at Tower Lofts since its inception in 2005 and have never had an issue. The North Loop community org. is very well staffed and they have a very solid foundation to build upon. If you are looking in the North Loop/Warehouse Dist. go to the experts, Downtown Resource Group/Mike Seebinger (or any of the agents). This is all they do and they really have a great handle on the North Loop Market. I know this because I am using them to sell my space at Tower Lofts (time for a house and a yard!).

I walke my dog at all hours and have never had an issue, run by the river, rollerblade.. feel safe at all times. With the Twins Staduim on it's way to completion, the North Loop is on its way to being one of the hottest condo markets in the city.

IMS lofts... It nice but its not in the North Loop and not in the warehouse dist.
1 vote Thank Flag Link Fri Jun 27, 2008
Nick. I'm not sure if you mean from a crime standpoint or how the market is performing vs the Twin Cities area in general. From a safety standpoint, The residental neghborhoods in downtown Minneapolis are quite safe. Trulia provides useful maps showing where the hot spots are for crime - and in downtown Minneapolis that tends to be in the nightclub district. If you were to ask loft owners about this, I'm certain that the vast majority would tell you that they feel safe. You can also get info on this from the Minneapolis Police Department if you'd like more statistics.

If you're talking about the market safety, downtown Minneapolis is currently outperforming the Twin Cities Metro in terms of growth and appreciation. More and more people are discovering how appealing the downtown lifestyle is and everything that downtown has to offer. Most new development is currently rentals, which will be beneficial for condos owners due to supply and demand. This is a good time to be a condo or loft owner in Minneapolis.
0 votes Thank Flag Link Thu Oct 30, 2014
Nick,
Indicators for the downtown condo market are positive right now (except for average days on the market before sale...you're looking at around 214 days average) The condo's in the 300's and below are typically being purchased by Minnesotans whereas the higher priced condo's are typically being purchased by buyers from other states (i.e. New York, California, Chicago, etc). North Loop is a nice area however do not rely on the stadium as a source of value. As a Realtor and a downtown resident, I can tell you that a project such as the stadium will be a source of attraction or an inducement to live in a specific area, such as the Guthrie is for the Mill District (where I live), but it does NOT increase value. The stadium is a source of interest ONLY for Minnesotan's, not for an out-of-town buyer. If you are interested in specific information concerning the downtown market, you can contact me at chaska8821@aol.com and I will email you info without any direct contact or marketing. Good Luck!
0 votes Thank Flag Link Thu Jul 17, 2008
Nick, I recently wrote an article on the strength the Downtown Condo Market, http://localism.com/article/525696/Minneapolis-Minnesota-Rea…

You’ll find that it’s a safer market than the suburbs, in general. People are moving into the urban core faster than the suburbs right now. In addition, the population of downtown is now at the point where real senses of community and distinct neighborhoods have emerged. Grocery stories, and other retail catering to a “local” clientele have emerged and more are moving in.

Downtown is doing well, and is a safe long term investment. You will find that the conditions vary however, by price point and development, i.e. $250-350k condos are not selling as well as $600-800k.
I’m a huge fan of the “new downtown” but always be careful. When we talk of “the market” we are talk of averages and generalities. Buying a particular condo is much like buying a particular stock; you need to know how that company is doing, not how the whole market is performing.
Some developments are in trouble - some are doing great.

Let me know if I can help. – Ben (612) 599-4161
0 votes Thank Flag Link Fri Jun 27, 2008
Nick.......

With the Twins Town development soon to come, there are some great units in the North Loop. Check out IMS Lofts. I just sold one there, and very few are left!

Thanks, Todd Norsted
Web Reference: http://www.toddnorsted.com
0 votes Thank Flag Link Mon Feb 25, 2008
I live in a great loft downtown (North Loop). And it is completly safe, I walk my dog at night without concern
0 votes Thank Flag Link Sun Feb 24, 2008
Nick,

The world (Minneapolis) is your oyster. Don't hesitate to make offers to developers. They want your business. You won't find a better time to buy. A couple of years from now, you'll be laughing all the way to the bank!
0 votes Thank Flag Link Thu Jan 3, 2008
Hi Nick,
The downtown loft and condo market is better than most. Don't be scared to jump into the loft market, just be educated. Make sure you talk with an agent that is 100% educated in the market and make sure they can educate you. It is a great time to be buying with prices dropping, interest rates being low and competition fierce. Good luck in your search and let me know if I can help.
Tara
Web Reference: http://www.taraobrien.com
0 votes Thank Flag Link Tue Jan 1, 2008
Nick,
I'd be wary of the loft market in general beacuse it is so overbuilt. However if you can get a great value and it's where you want live go for it.
Michael Doyle
0 votes Thank Flag Link Mon Dec 31, 2007
Nick, it really depends on the the specific neighborhood, and more importantly, the building. There are a lot of dud projects out there, but also many decent buys and even a few gems. I'd recommend working with a seasoned agent that specializes in the downtown market like myself. There are many, many things that "outsider" agents can't know without direct downtown experience--not everything shows up on MLS, and every building has its own story. Good luck to you in your search!
Web Reference: http://www.nateroise.com
0 votes Thank Flag Link Sun Dec 30, 2007
Nick, help.....what do you mean by safer? Safer in terms of protection of your investment? Safer in terms of crime? I'll help answer as best I can, but am unclear of what your're after, sorry.

Todd Norsted
Web Reference: http://www.toddnorsted.com
0 votes Thank Flag Link Sat Dec 29, 2007
Yes, the Midwest in general is very stable and now is a great time to buy with low interest rates. Good luck!
0 votes Thank Flag Link Sat Dec 29, 2007
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