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Minneapolis: Basket Case

By CrowsAreSmart   Follow   Tue, 29 Mar 2011, 2:32pm   937 views   10 comments
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Minneapolis beat Detroit from December to January with the worst one-month drop in home resale prices:

http://minnesota.publicradio.org/collections/special/columns/news_cut/archive/2011/03/minneapolis_basket_case.shtml

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1. jvolstad Follow Befriend (4) 996 threads 1,128 comments San Antonio, TX jvolstad's website

   1   3:01pm Tue 29 Mar 2011   Share   Quote   Permalink   Like   Dislike   As a former Minneapolis resident (Warehouse District), I wonder if some of those pricey downtown condos have come down in price?

2. schmitz_kris Follow Befriend 36 threads 178 comments

   2   7:01pm Tue 29 Mar 2011   Share   Quote   Permalink   Like   Dislike   Yes, things are going vertical now - vertically DOWN, that is. http://www.startribune.com/business/116445954.html Close acquaintance bought a 1.7M townhome in St. Anthony on Main (new downtown river urban redevelopment) during the bubble years. Care to guess where it's at now? I won't even say - it's too embarrassing. EPIC FAIL.

3. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 171 threads 4,223 comments Premium

   3   8:32pm Tue 29 Mar 2011   Share   Quote   Permalink   Like   Dislike   Protected   Minnesota is doomed. Luckily the cold weather will keep delicious corpses fresh until the survivors can get around to eating them.

4. joshuatrio Follow Befriend 41 threads 704 comments Monterey, CA

   4   8:50pm Tue 29 Mar 2011   Share   Quote   Permalink   Like   Dislike   I frequently get laid-over when traveling back east @ Minneapolis St. Paul Airport. I've always wondered what the city was like. Dig the name, but maybe that's just because of St. Paulie's girl beer.

5. CrowsAreSmart Follow Befriend (1) 14 threads 35 comments Saint Paul, MN

   5   6:46am Wed 30 Mar 2011   Share   Quote   Permalink   Like   Dislike   Great artilce, Schmitz. The condo market in St. Paul has done much of the same, at least as far as values go. The two cities are very different beasts, though, as I'm sure those of you that have lived in "the cities" can attest to. And, off the topic of condos, A close friend of mine purchased a housing-boom era home (built in 2000) in south Minneapolis last fall for $195k. Since moving in, she's realized how poor the construction was and is completely unhappy. It is my opinion that houses in many neighborhoods of Minneapolis, even the ones that were put up quickly on vacant lots to churn a profit in the boom years, are still WAY overpriced. And the kicker? This same house was assessed for property taxes at $220k.

6. Fisk Follow Befriend (1) 8 threads 242 comments

   6   2:00pm Wed 30 Mar 2011   Share   Quote   Permalink   Like   Dislike   schmitz_kris says Yes, things are going vertical now - vertically DOWN, that is. http://www.startribune.com/business/116445954.html As I read your link, the auction reserve price is only 10% below original purchasers in 2007 (near the market top), and some units may sell above that. While unpleasant to the current owners, I wouldn't call that "vertical down".

7. CrowsAreSmart Follow Befriend (1) 14 threads 35 comments Saint Paul, MN

   7   2:05pm Wed 30 Mar 2011   Share   Quote   Permalink   Like   Dislike   Did you misquote schmitz_kris? That was an excerpt from my post...

8. schmitz_kris Follow Befriend 36 threads 178 comments

   8   3:31pm Wed 30 Mar 2011   Share   Quote   Permalink   Like   Dislike   Fisk, what are you talking about? Minimum bid for the auction is 50% (half) of the most recent list/ask price, and those recent list/ask prices were already down significantly from 2007 (perhaps by the nationwide average of 32%+ or so). I have lots of friends living downtown, and the condo/development market is getting (and got) killed.

9. Fisk Follow Befriend (1) 8 threads 242 comments

   9   3:37pm Wed 30 Mar 2011   Share   Quote   Permalink   Like   Dislike   schmitz_kris says Fisk, what are you talking about? Minimum bid for the auction is 50% (half) of the most recent list/ask price, and those recent list/ask prices were already down significantly from 2007 (perhaps by the nationwide average of 32%+ or so). I have lots of friends living downtown, and the condo/development market is getting (and got) killed. From your link: "She bought the unit at pre-construction prices before they got married and got a deal, but still they've lost nearly 10 percent of what they paid." It's actually not even 10% - "nearly 10%". A 50% off list/ask prices means little, how many have actually bought at those prices? Also, the sale prices may well exceed those "reserves" significantly. BTW, in absolute sense, $250/sq. ft. reserve is not "killed' in my count. I'm somewhat familiar with Miami/So. FL. condo market, where even excellent units 5 min. walk (second line) from a great beach often sell (sell, not reserve!) for ~$ 100/sq. ft. and occasionally as low as $80. That's killed.

10. schmitz_kris Follow Befriend 36 threads 178 comments

    10   3:57pm Wed 30 Mar 2011   Share   Quote   Permalink   Like   Dislike   I have lots of friends downtown, but I don't know anybody that still HONESTLY says, "I'm only down 10%..." anymore. They said that stuff in early 2008, but not today. Maybe she got ONE HECK OF AN INCREDIBLE pre-const. deal? More likely, though, is that she has no idea what she could realistically sell her condo for or is simply in denial. There have been surveys in many areas where the average resale price is down 33% or more, and many folks still claim that their home is "only down 10%." It's just a statement, it's not factual.