Industry News

Twin Cities real estate headed for healthy ’06

No evidence of housing bubble, Realtors say

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Housing market conditions in the Twin Cities, Minn., metro area remain positive, and home-price appreciation is expected to continue at a healthy rate, according to the four Twin Cities Realtor associations. A bubble in local housing prices is highly improbable, the associations reported, although the rate of price growth could slow if local job market conditions unexpectedly weaken. The healthy gains in median sales price of existing homes over the last five years can be correlated to mortgage rates hitting 45-year lows and the 23,400 payroll jobs added in the last year, the associations reported. These factors will continue to drive strong demand for home ownership in the future. Most credible forecasts predict the Twin Cities region will create at least 40,000 jobs over next the 24 months and mortgage rates will hover around 7 percent by the end of 2006. The supply of homes available for sale has climbed to a healthy level, partially due to the addition of 95,000 new sing...