Minneapolis real estate has been on the rise over the last 12-18 months, and luxury Minneapolis condos are no exception.
There are a number of factors playing into the increased momentum of sales activity, up nearly 60% year over year. Check out the data we have assembled showing sold and pending units from 1/1/12-9/6/12 Upper Bracket Minneapolis Condos Sold in 2012 and 1/1/13-9/6/13 Upper Bracket Minneapolis Condos Sold in 2013
Today we will cover a few reasons to explain the uptick in activity from our perspective and give some important considerations if you are just beginning the search for a Minneapolis condo at any price point within the market.
Its no surprise that a 30 year fixed mortgage costs more now than the beginning of the year which was in the low 3s. Though rates are still fantastic, upward pressure is putting a damper on purchasing power for Buyers at most price points in the spectrum. The real underlying drive for Buyers to act on purchasing sooner than later is that rates COULD continue inching higher over the next 12-18 months.
Plenty of Buyers thinking of purchasing luxury Minneapolis condos have been sitting on the fence for the past few years for a few reasons. Some had to wait for the real estate market to rebound before they could sell their current residence to fund the purchase of their future purchase. Others were shell shocked over the impact of the recession and didn’t feel confident about purchasing just yet…until recently with the uptick in the market which gave the confidence needed to drive interest in making a purchase. In 2013 motivation is high helping to explain the increase in sales.
To echo the last reason above on a macro scale: Buyers are confident about the economic outlook and given this fact the ‘wealth effect’ is setting into the Buyer psyche. From the stock markets to jobs data in the US and abroad the general feeling that our country is in a better place makes the Buyer market confident in purchasing.
Influx of Out of State Buyers
With the high amount of Fortune 500 companies coupled with the fact that the Twin Cities is the silicon valley of biomedical devices makes the area a hot bed for the creative class and corporate executives of the county. As these companies continue to build human capital selecting the best employees to fit positions will include a talent base outside the twin cities. Many of our valued clients Ben Ganje + Partners represent come from out of state. The Buyer expectation has search criteria that nearly always includes living in high density areas most notably downtown Minneapolis, Minneapolis Lakes area and Edina.
The upper bracket luxury Minneapolis condo market has historically and continues to be driven by empty nesters with a sizable net worth that typically own multiple properties in the US. Across the Minneapolis market in buildings like Ivy Minneapolis Condos, 16Twenty and Linden Crossings.
For more insight into the Minneapolis condo reach out to Ben Ganje + Partners at Lakes Sothebys International Realty at 612.460.5638.