Minneapolis-St. Paul, MN, is also known as the Twin Cities. It is a central metropolitan area separated by the Mississippi River. To learn more about the Twin Cities, continue reading below:
Quick Facts
- Around 3.65 million people live in the area.
- The temperature in the Twin Cities typically varies from 9F to 83F.
- The cost of living in Minneapolis is 7% higher than the national average. The state of Minnesota is 3% higher than the US average.
- On average, the median house pricing is $303,000 to $342,500.
- Right now, there are more buyers than sellers in the city.
Minneapolis-St. Paul, MN in a nutshell
As the 16th largest metropolis in the United States, Minneapolis (the bigger area in the Twin Cities) holds a robust real estate condition.
The Twin Cities have diverse neighborhoods. Hence, they have a great mix of middle and working-class families. Experts also say that Minneapolis is one of the best places to invest in real estate.
Here are the fastest-growing areas in the Twin Cities:
- City Center
- E Franklin Ave / Hiawatha Ave
- S 8th St / 11Th Ave S
- Central Ave SE / 1st Ave NE
- E Lake St / 3rd Ave S
Transportation
There are many walkable parks and bikeable alleys. So, Redfin said that walking and biking are the two major transportations in the area. While there are enough public transits, it does not give the same convenience - and fun- as biking and walking do.
Public Schools
Minneapolis-St. Paul, MN, hosts 699 schools. Realtor.com listed some of the top public schools in the area:
- Yinghua Academy
- Justice Page Middle School
- Southwest Senior High School
Moreover, these areas specialize in giving exemplar STEM education.
Job Market
Experts see a solid job market in the Twin Cities. As a result, the number of people moving and wanting to work in the area continues to grow. It also helps that Minneapolis is one of the cities that gives the highest salary in the US.
Job options are in life sciences, biotechnology, and medicine. This is why STEM education is the city's priority. In addition, some of their industries include music and performing arts.
Real Estate Condition in Minneapolis-St. Paul, MN
(Latest data updated in July 2021)
The larger part of the Twin Cities - Minneapolis - is facing an inventory shortage. It dates back to the height of the pandemic, where many people lost jobs and construction works slowed down. From January 2021, there were only 1.3 months of house supply in the area.
As a result, the home prices went up, and buyers had difficulty closing a deal amongst other bidders. Nonetheless, real estate agents from MAR (Minneapolis Area Realtors) said that they saw a hint of inventory increase starting May 2021.
Real Estate Market
Amidst the low inventory, the housing market in Minneapolis-St. Paul, MN, remains strong. In fact, in May 2021, the median list price went up to $342,500, up 16% from last year. But, it's still significantly low compared to 2019 prices.
At present, the median listing price is $329,900. Then, the median listing home price per sq/ft is $222. The market favors the sellers, where most houses are sold for 1.98% above their listing price. Typically, homes remain on the market for 49 days - recorded this July 2021. Unlike in July 2020, houses were pending for 52 days on average.
Real Estate Trends 2021
The Twin Cities continue to flourish with their strong economy and low mortgage rates. As a result, the buyer activity is still very strong. This is along with the fact that the supply and demand are still on the sellers' side.
At present, Minneapolis saw a 42% increase in single-family home sales. But, in St. Paul, there was only a 15% increase. At the same time, there was a significant decrease in the sales of rental properties.
Minneapolis-St. Paul, MN Real Estate Projection
The home values in Minneapolis already increased by 8.5% and will continue to rise in the next 12 months. Meanwhile, in St. Paul, the projection is pretty much the same since home values have gone up 9.1% over the year. With all that said, experts see a positive change in the next coming months.
Until the market is on the sellers' side, most buyers will benefit from low mortgage rates. To support, Freddie Mac, a Mortgage Loan Company, said that mortgage rates have been below 3% since last year. Thus, it is expected to become even lower in the following months.
Final Thoughts
Minneapolis-St. Paul, MN, real estate is going strong. Therefore, agents say that it's the best time for sellers and investors to enter the real estate market. While the low inventory crisis is far from being solved, the Twin Cities continue to see a positive market outlook.
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