| Poised on top of the real estate mountain in 2003, | | | | slowed to a stop by 2007, and because builders |
| it's hard to imagine so much change in the | | | | could not get new homes sold, the value of |
| Minneapolis real estate market in the last five | | | | homes across the country started to drop. |
| years. While the bubble has certainly burst and it's | | | | Analysts called it price adjustment for the over |
| no longer a seller's market, key elements like | | | | inflated selling prices of years past, but |
| long-term value of Minneapolis real estate as an | | | | homeowners simply saw it as less value in their |
| investment and the quality of life available to | | | | investments. |
| residents has not changed. Even after five years | | | | Once the dust settled in 2008, however, |
| of change, the world of Minneapolis real estate is | | | | homeowners realized that although their homes |
| still a great place to buy a home for you and your | | | | had lost a bit of value, their homes were still solid |
| family. | | | | investments. Compared with the performance of |
| 2003 was a banner year for the housing market | | | | stocks and 401Ks, home equity was a solid place |
| across the United States. In Minnesota, 39,440 | | | | to put hard earned money for those willing to |
| people were gainfully employed in the real estate | | | | keep homes until the economy began to pick up |
| and rental industries with a combined annual | | | | speed. |
| payroll exceeding $1,237,000,000. Clearly, real | | | | While the past five years in Minneapolis real estate |
| estate was lucrative for sales professionals | | | | have been filled with drama, one thing a smart |
| involved in the booming market. Sellers benefited | | | | investor realizes: current prices in the housing |
| from bidding wars over their homes. Houses could | | | | market make this the ideal time to buy. Houses |
| not be built fast enough to meet the exceptional | | | | and condos that were once out of reach |
| demand for homes in the market. | | | | financially are now less expensive and ready to be |
| Over the next two years, the strength of the | | | | purchased. In addition, the influx of one-time |
| economy and the housing market caused lenders | | | | homeowners that now want to rent homes |
| to start granting adjustable rate mortgages and | | | | instead of paying over-inflated and financially |
| larger mortgages than people could actually afford. | | | | dangerous mortgages makes this the ideal time |
| Lending practices got very loose as bankers were | | | | to venture into rental property ownership. Rentals |
| caught up in the housing market frenzy. Add the | | | | are a great way to invest and make money in |
| risky business of real estate speculation to the | | | | the current economy. |
| equation and it soon became clear that some of | | | | The future is anyone's guess, but one thing is |
| the growth in the housing market was built on | | | | certain: Minneapolis real estate is one of the best |
| shaky ground. | | | | ways to invest in your future. Over the long haul, |
| Builders and lenders wanted to continue the | | | | it's sure to pay off; thanks to the strength and |
| exponential growth of years past, and by 2006, it | | | | bright future of the city's schools, commerce and |
| was clear that far too many new homes were | | | | the entrepreneurial spirit of its residents. |
| sitting on the market unsold. New home building | | | | |