A diverse economy and strong housing affordability lands Minneapolis on our list. The Twin Cities continues to show low unemployment and is setting records for jobs. The booming job market and affordable housing makes the city of lakes a hot spot. ~ NAR
Minneapolis, Twin Cities Minnesota (PRWEB) January 06, 2015
Christ Huecksteadt, Regional Director of Metrostudy’s Twin Cities Region, summarized the metro's new home market as continuing to "sound positive". The Twin Cities housing market is closing out one year and beginning another with a stronger than average job market, economic recovery, and percentage of affordable homes.
"For the most part, the metro's housing market rebound looks bright and full of promise in 2015," says Jenna Thuening, owner of Home Destination.
"Next year’s outlook will be heavily dependent upon growth in the local economy and builders’ and developers’ ability to deliver lots in desirable locations to meet potential new home demand. In addition, the housing industry desperately needs the consumer to jump back into the game. Modest growth from 5% to 10% is forecast for 2015. Economic growth and, maybe more importantly, consumer attitudes toward home buying, will be crucial for this forecast to materialize," according to the November 19, 2014 Twin Cities Business Magazine's article titled New Home Activity Slowing as 2014 Comes to a Close.
Top 6 Twin Cities Real Estate Predictions for 2015 by Home Destination:
1. Home Sellers Advantage in 2014 Becoming Homebuyers Advantage in 2015
From the first quarter of 2014, Home Destination knew it was going to be a great year for home sellers in the Twin Cities. A promising economic atmosphere stimulated strong growth in the Twin Cities real estate industry last year. Financial institutions helped accelerate that growth with favorable offers to consumers, which is expected to improve in 2015.
2. Continued Increase in the Cost of Rental Homes
The exceptional improvement in Twin Cities home prices had its downside for residents who currently rent a home. Going into the year 2014 with already high and rising rents, only saw the pattern continue, creating a stronger desire in more prospective Minneapolis home buyers to make the leap to homeownership. This creates a scenario where buying a Twin Cities single-family home for rental income clearly offers the chance for excellent rates of return for Twin Cities residential investors.
3. Twin Cities New Construction Switches Focus
The Twin Cities housing market recovery did particularly well in 2014 when compared to national averages. The Bureau of Labor Statistics reports that the Minneapolis 13 county metropolitan area achieved a 3.2 percent unemployment rate, which can boast of being the best metropolitan area in the Unites States. “Additionally, the region is said to be on track to meet a goal of recovering and adding 100,000 jobs by the end of 2015, which was set by economic development partnership Greater MSP”, according to Twin Cities Business Magazine.
With new incentives and lower interest rates coming, NAR predicts the new construction industry may focus on more affordable homes to meet the market demand for single-family homes at lower price points. On December 31, a post on pending home sales expresses that much of the movement comes from buyers who feel confident enough to make a home purchase.
4. Real Estate Buyers Continue to Line up for Lakefront Homes
Owning a house on one the Twin Cities lakefront properties is a like having a perfect weekend getaway. Lakefront homes in 2014 remained in high demand and typically have above average home price appreciation rates as homeowners enjoy the retreat away from the bustle of downtown Minneapolis and stress of crowded streets and buildings. Multiple top-notch residential neighborhoods near a lake offer exceptional luxury, scenic views and comfort, which more move-up home buyers are ready for in the coming year.
5. On-going Demand for Condos and Apartment Units
Condominium home sales were the best the Twin Cities has seen for the past seven years and is likely to continue. Predictions are surfacing that in the five years, Millennials will comprise 2/3 of all new household formations. This raises an expectance that they will shape the Twin Cities housing market with their unique demands, interest in housing types, and where they consider to be a prime location. Millennials generation home buyers want locations with easy transportation, walkable neighborhoods, to be near urban activities, restaurants, the arts buzz and sports events.
6. A Stronger Traditional Housing Market
The metro will put more of the recession into the past. Home foreclosures and short sales will continue to diminish and the market momentum toward “normal” will preside.
About Home Destination - Twin Cities Real Estate:
Home Destination offers a loyal and committed real estate professional service that personally handles all of the details of selling or purchasing homes in the Twin Cities. Highly regarded by peers as a Minneapolis metro expert for over 15 years, Jenna Thuening is a skilled representative offering key guide to make the best possible housing decisions.