The Roaring 2000's

Since 2000, Twin Cities Home Prices Have Increased by as Much as 40-45%

Amazingly, but not surprisingly, Twin Cities area Realtor groups reported another record year for 2004. By just about any measure, the Star-Tribune reports, the residential real estate market was robust, with townhomes and condominiums leading the charge.

Some Highlights from the article:

• Realtors Sold 58,233 Homes in 2004 (includes condo/townhome sales)
• The Median sale price increased 8% to $215,900
• 4 out of 10 buyers were first-time buyers
• Downtown condo and townhomes are routinely selling for more than $300/Sq Ft.[WOW]

Another statistic that stood out was the fact that the Twin Cities expects to add another 500,000 residents by 2030, and that 16-18,000 new housing units will be needed each year to meet this demand.

Can it really be this good?  Maybe not. Here's a few signs the market may be cooling off:

• Demand Slowing. The number of homes for sale is at a 5 year high
• Number of new building permits slowing
• Interest rates expected to rise slightly

Related links
How did your neighborhood do in 2004?[Regional MLS stats]
Liar's Poker.  Is there a Housing Bubble?[Behind The Mortgage]

01/12/05 at 08:23 AM | Permalink
Filed Under: Bubble?, National & Abroad