Bill Cullen writes:


I am a Realtor / Real Estate investor.

Recently, the Realtor's association reported that the median price of a home in the metro area climbed 8% in 2003. Below are the changes in median values for Minneapolis. I added the difference and percentage calculations.

District Name    2002 Median   2003 Median Difference   Percent change
Calhoun/Isles    $292,000      $287,900    $(4,100)     - 1.4%
Camden           $130,000      $144,900    $14,900       10.3%
Central          $233,000      $219,000    $(14,000)    - 6.4%
Longfellow       $169,900      $180,000    $10,100        5.6%
Nokomis          $179,650      $195,000    $15,350        7.9%
North            $121,950      $139,900    $17,950       12.8%
Northeast        $162,000      $179,950    $17,950       10.0%
Phillips         $129,950      $144,000    $14,050        9.8%
Powderhorn       $157,000      $166,500    $9,500         5.7%
Southwest        $237,000      $257,500    $20,500        8.0%
University       $179,000      $210,500    $31,500       15.0%

I cannot explain why some districts saw large increases while others saw significant decreases. North Mpls did particularly well -- and this is years AFTER the flipping scams Dyna mentioned. Finally, if we look at the "average sales price" and not the "median", the average was up significantly in all Minneapolis districts.

Dennis Plante responds:

My gut tells me the large gains seen on the northside are due mostly to the affordability of the housing stock in that area, in conjunction with the relatively low interest rates. Combining these to factors made it very attractive (still) for 1st time buyers, that fit mostly, into the lower-end bracket.

imho-I look for sales and values to flatten-out even more over the next couple of years.

Dennis Plante
Jordan

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