Twin Cities Real Estate Market

Many investors are questioning the stability of the Twin Cities market. It's hard not to with all of the negative media blitz attacking housing and real estate in general. I challenge each of us as investors to look at this time of slowdown, really, as a time to buy. Rates are low, home supply rates are at all time highs, and many sellers are being forced to "fire sell" their properties. What a great time as investors for each of us to get a good buy!

With this media blitz, I think we all so easily forget how "good" the real estate market in the Twin Cities from 1998-2004 really was. Go to this PDF link to see the hard numbers. In 1998, the Twin Cities saw appreciation of 7.2%, in 1999, 9.6%, 2000 saw 11%, 2001, 11.8%, 2002. 8.8%, 2003, 8.1%, and 2004, 8%. www.mplsrealtor.com/Segments/Realtors/Appreciation.pdf

So now when the market slows back to normal levels, the media throws real estate under the bus. Again, don't be fooled. Look at the hard numbers for Minnesota. http://www.census.gov/hhes/www/housing/census/historic/values.html From 1940-2000, Minnesota has appreciated on average, 6.14% (including inflation)

Time shows our market is one that is slow, steady, and and yes, stable. Look at the job base we have here, as well as all estimates regarding the increase in population that we will see over the next 20 years.

Real estate is pretty simple. Supply and demand. Right now, we have a huge oversupply, forcing prices to level off, which in my opinion, is a good thing. Our incomes couldn't keep up with those high appreciation rates from 1998-2004.

Again, I write this only as "food for thought." I know alot of investors that are worried, nervous, down on the Twin Cities market. Give it some time. Let "Father Time" be our guide as to what is going to happen to the value of your real estate you own. As we preach in all of our seminars, buy and hold, buy and hold.

Even if you're just "kicking around the idea" of buying real estate, let me know if you'd like to get out with one of our team members or meet to have a cup of coffee. There are alot of great buys out there right now for us an investors. Or feel free to stop by our upcoming seminar at the Sheraton. www.InvestmentPropertyGuys.com Again, we will work with you helping you get the property rented out at no charge.

Lastly, if you get the chance, tune into our radio show on Sundays, www.TwinCityRealEstateShow.com