Check all the real estate news sources you want. They are all saying the same thing. The coming year will be a bright one for the Twin Cities real estate market.
There are many factors that go into how a housing market does at any particular point in time. What's helping the Twin Cities market is nation-leading low unemployment rates at 3.2% and a diverse and a growing economy that continues to offer new jobs in the area.
Minneapolis is the second largest market in the nation among home-owning millennials. And the area is showing strong growth in new construction to help meet the increased demand.
If there is anything that can slow down this market it would be hesitant consumers who are still feeling the sting of the recession that started in 2008. Along with a continued robust economy, consumer attitudes will be crucial to a strong market this year.
Other reasons that the Twin Cities Real Estate Market is looking especially bright for 2015 include:
1. Cost of Rental Homes
Even with the rising costs of buying a new home in the Twin Cities, high and rising rents in the area are pushing prospective buyers to jump into homeownership. Those looking to purchase a single-family home for rental income can look forward to an excellent rate of return because of the high cost of rent.
2. New Construction Switches Focus
Because of new incentives and lower interest rates, NAR predicts the new construction industry will focus more on affordable housing to meed the high demand for single family homes in lower price points.
3. Buyers Continue to Want Lakefront
Metro area residents love living on lakes. Lakefront homes remain in high demand and bring higher than average home price appreciation rates. Even neighborhoods close to lakes offer scenic views, a short walk to recreation and tend to offer more luxuries and comforts which attract move-up buyers.
4. Demand for Condos
With a large population of Millennials in the Twin Cities area, condos are in high demand. This generation of home buyers want locations with easy transportation, walkable neighborhoods, to be near urban activities, restaurants, the arts buzz and sports events.
5. Strong Traditional Housing Market
Last year saw a the housing market moving much closer to "normal". With home foreclosures and short sales continuing to take up less and less of the market, 2015 looks to get us even closer to a balanced and strong housing market.
Sources: PRWeb.com, National Association of Realtors, Realtor.com, and Michelle Schwake for Stafford Family Realtors