Inside Twin Cities' housing market rebound: It's real, but uneven

  • Article by: Jim Buchta , Star Tribune
  • Updated: February 1, 2014 - 10:43 PM

The housing recovery is real and sustained in the metro area, turning a buyer’s market into a seller’s market. But while some neighborhoods soar, others suffer.

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FrankLFeb. 1, 14 6:35 PM

Even within Mpls you have 10% of the market in great shape, 20% treading water and 70% wondering: What Recovery? If they want to keep momentum, Mpls needs to figure out how get their housing stock updated, otherwise the hopes for growth will disappear.

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WaterBunkerFeb. 1, 14 6:58 PM

Let me guess, the rich are benefitting and should be taxed. Their gain is bad for society and the economy. The poor need more government "help". Liberals, did I get it right?

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wafflekFeb. 1, 14 7:12 PM

The median price in Linden Hills may not be an apples to apples comparison from the peak. There have been a lot of teardowns in that neighborhood and they are being replaced by houses in the $800K-1M range.

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GaviotaFeb. 1, 14 7:38 PM

“In the Linden Hills neighborhood of south Minneapolis, the median price of all closings last year was $415,000 — an astonishing 19 percent higher than the peak in 2007. But just a few miles north, prices in the Jordan neighborhood, while recovering, are still nearly 60 percent below their peak in 2005.” >>> If the reporter had taken a drive through these two neighborhoods he likely would have realized that there’s nothing astonishing about Linden Hills’ median price being 19 percent higher than in 2007 while Jordan’s median price is nearly 60 percent below its peak. In Linden Hills he would have seen the results of a teardown plague that has not infected Jordan: dozens of newly constructed, suburban-style, hideously out-of-scale monster houses that have replaced smaller, far-less-expensive and, almost always, well-maintained vintage homes. Not content with ruining lovely Edina-Morningside, spec developers have been doing their teardown/infill number in several Minneapolis neighborhoods besides Linden Hills, e.g., Fulton, Lynnhurst and Armatage. The philistines who run our city are selling its architectural birthright for a mess of porridge, i.e., a bigger potful of property taxes.

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bwikFeb. 2, 14 4:35 AM

Agreed that some infill housing is more like a plague of locusts. But neo-infill would be to tear down unappealing structures and replace them with something in-scale and designed right. Linden Hills is an appealing, safe place near lakes. North Mpls has nothing physically wrong with it. But the fact it is considered unlivable by most people in the area shows the incredible, all-destroying power of crime. The harm done to N Mpls and some other whole cities in the US is almost incalculable.

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lisalrobertsFeb. 2, 14 7:23 AM

We priced our Plymouth home aggressively and sold in two days. Same-vintage (1970s) homes a few blocks away have been on the market for 3+ months, some with substantial price reductions. So, even within neighborhoods, YMMV.

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dentesterFeb. 2, 14 7:24 AM

The "teardown" phenomenon is starting in the nice neighborhoods in St. Paul also. Our modest 230k home in Mac-Groveland was recently bought and totally torn down and replaced with a monstrosity twice its size and then sold for $585,000! We were shocked! Now another house a few blocks away is undergoing the same type of total tear down. I don't get it.

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swmnguyFeb. 2, 14 8:21 AM

"lisalroberts": The key is equity. To price your home "aggressively" you have to have substantial equity. I did the same thing 5 years ago in S. Mpls., and we sold our house in a day for 30% more than we had been asking, with multiple offers driving up the price. But we had lived in the house for 12 years and made significant early payments on the mortgage. People who bought toward the peak of the bubble and haven't built up much equity yet, or took out additional mortgages or HELOCs etc., and then market prices either leveled off or dropped, are stuck and can't price their homes at a level people will pay.

Good for you. You did it right.

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hieverybodyFeb. 2, 14 8:38 AM

While some blame developers for tear downs, I want to thank them for new housing stock that's high in demand and too low in supply in good locations. If you don't want a new home, don't buy it. And don't sell you're old house to a family wanting new construction. And yes, even your home was new at one time.

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brainerdguyFeb. 2, 14 9:37 AM

republicons HATE good news!!!

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