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.
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.
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.
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 firstname.lastname@example.org and I will email you info without any direct contact or marketing. Good Luck!
Youâ€™ll find that itâ€™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 â€œlocalâ€ 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.
Iâ€™m a huge fan of the â€œnew downtownâ€ but always be careful. When we talk of â€œthe marketâ€ 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. â€“ Ben (612) 599-4161
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
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!
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.