Secrets of the City

I don’t mind the increase in condo building. Maybe it’ll make Minneapolis more like real city instead of the urban sprawled transportation disaster we are now.

Got an article to post?

Got one: From the Pioneer Press about Apple Valley “Council passes downtown plan. In 3-2 split, city approves development proposal that includes rental housing.”

Here’s another question: How much should the city interphere with the decision to build condos v. apartments? Minneapolis was all worried that condo building was going to squeeze out renters, but it looks like the real estate market is going to take care of excess condo building all by itself.

I suspect those condos near the light rail on Lake are for targetrons.

Keep ‘em coming. The more there are, the less value they’ll have, which is good for those of us who are seeking to buy in the near future.

… but it looks like the real estate market is going to take care of excess condo building all by itself.

The more there are, the less value they’ll have, which is good for those of us who are seeking to buy in the near future.

Funny thing about free markets. They work.

The populatino does not exist for all the condos that are going up right or that are being sold right now. In some locations, namely downtown, the market exists but it does not in the suburbs or even in non-economic/cultural centers of the cities. I’m just waiting for a crash in prices that those locations that send them lower by 1/3 – 1/2 their current price and their eventual turn into rental property.

This is just the tip of the iceberg. There are giant crowds of Boomers who are currently living in 2500 sq ft 4BR houses in the suburbs who are looking to abandon their oversized empty nests upon retirement. That retirement wave is just starting to hit.

In many cases, they can sell their big houses at walk away with $300,000 in cash, which goes a long way to setting yourself up in a condo for retirement.

My wife and I have had the same thought — who is going to buy all the new lofts and condos that are springing up in Minneapolis (and now St. Paul)? While we agree that having people living downtown again is a good trend, we wonder like “B” if the boom isn’t going to turn into a bust real soon.

The “free market” can also make a mess of things, too.

One exception is growth around the rail stations — I have seen this happen in the D.C. area, it is already happening here. Last summer we went out to look at some new condos in Coon Rapids — turns out it was just a sales office, ground wasn’t broken yet. The main selling point? It was going up near a station for the Northstar line — a train that won’t be up and running for a number of years, yet developers are already jumping on board.

a train that won’t be up and running for a number of years, yet developers are already jumping on board.

Because…all together now, “It’s not about transportation!”

I’m just waiting for a crash in prices that those locations that send them lower by 1/3 – 1/2 their current price and their eventual turn into rental property.

That’s not even realistic.

j wynia nailed it. The Boomers, who’s parent settled the suburbs, are coming home to urban America. I’ve always been a proponent of building up, not out. And linking it together with light rail is an urban planner and environmentalist dream come true. Oh, and the free market puts it all together? Not bad, if you ask me.

Transportation, on the other hand, should be a common public interest so I’m in favor of that being goverment run. Housing, retail and businesses built up around the rail stops? Brilliant. Bring it on!

fact:
real estate is the only thing you can buy that will go up over time-guaranteed.

even where markets have gone bust they have eventually rebounded and gone up.

as long as you can stick it out and are not forced to sell during a down cycle-you can’t lose.

however real estate investors looking to make a quick flip can easily lose their ass.

just my 2 pesos.

fact:
real estate is the only thing you can buy that will go up over time-guaranteed.

even where markets have gone bust they have eventually rebounded and gone up.

as long as you can stick it out and are not forced to sell during a down cycle-you can’t lose.

however real estate investors looking to make a quick flip can easily lose their ass.

just my 2 pesos.

The bottom-line question is how much demand is there for baby boomers’ suburban homes? If it takes forever to sell their houses, it’ll slow condo absorption downtown.

fact:
real estate is the only thing you can buy …

Wait, has this point alrewady been made?

fact:
raindog sucks at interweb..

whenever talk of a real estate bubble comes up, I wonder what people really mean.

bubble as it relates to speculative activity, esp. novices jumping on the bandwagon, can definitely blow up.

price appreciation driven by long term trends…now that’s a pig of a different odor.

trends:
traffic sucks
not every minnesotan is getting married and pregnant by 25
maintenance free living is predicted to continue as a driving trend for at least 15 more years
baby boomers are downsizing and living multi-state lifestyles
minneapolis is finally getting more urban & urbane (sorry)

tangent:
Real estate in NYC (even residential) sells per sq. foot. That really needs to catch on here. My SF home is $192/sq. ft (not counting yard), and I’m seeing so many condos at $250 and that’s not luxury, that’s entry level.

tangent dos:
i’m interested to see what types of retail fills in around these condo towers. IMHO that can make or break a neighborhood. great market/deli in my hood that makes it hard to leave.

The bottom-line question is how much demand is there for baby boomers’ suburban homes? If it takes forever to sell their houses, it’ll slow condo absorption downtown.

That’s why we’ve always prodded you whippersnappers to get off your asses, get good grades so you can graduate and get good jobs and become self-sufficient … so you’ll be viable buyers for our homes when we want to sell! It’s always been about our self-interest.

This post by a friend pointed me toward the best article I’ve seen on gentrification. I know I’m glad to see Minneapolis becoming more walkable and liveable, but I also think I sold my downtown condo at just the right time this spring.

ry4an that is one of the best articles I have read on the whole gentrification issue. I was a little put off at first because of the faith angle but many of the ideas are well thought out and are very applicable without even involving faith just a willingness to actually care for your fellow human beings.

It’s really too bad that for the most part finding housing for the poor and less fortunate needs to be regulated and mandated to actually happen.

The part about the poor being pushed into the surrounding suburbs was fairly topically considering the article a few weeks ago about poverty in the ‘burbs.

condos are definitely selling slower around downtown. just a year ago, people queued up for a presale day, ready to write a check to reserve a unit or two. now many developers have to include incentives like paid association fees or roll parking into the purchase price.

i am keeping my fingers crossed that the stalled 8-story project across my window view keeps on stalling. hooray slow home sale! boo skyrocketing property taxes!

I don’t know. This CondoCraze seems vecer ending. I mean my brother, who lives about a hour outside of Washington D.C. has condos going up all around him. Fields with condos and townhomes, that used to be family farms. It’s turning rural, quiet, America into rich, white, America, with more and more highways, and polution.

I mean in 15 – 20 years, it’s going to be an urban sprawl from here to Rochester, and we are just lucky that we don’t get smog here. You have to drive far now to get out of the city.

Anyone heard about The Penfield? They’ve been playing many many many advertisements on the radio about it lately. I’m excited to see a new highrise downtown Saint Paul.

More info

From The Penfield website:
Come explore this site and learn more about The Penfield

Ther’s nothing to explore, or learn on that site.

Ther’s nothing to explore, or learn on that site.
You mean you already knew that Penfield=Sexxxy?

Fears of a condo crash are much more relevant on the coasts, where the markets are much more volatile and the scale of condo construction dwarfs what we’re seeing in the Twin Cities.

Sure, sales have slowed down, but that’s a good thing. The mania we experienced over the past few years was not sustainable. It was good for increasing awareness of urban living, but the fever led to the fret. And man, are Minnesotans great at fretting!

That’s not to say there won’t be casualties among developments, however. There will be projects that are poorly conceived, badly marketed, or attempted by “cowboy” developers that WILL fail.

As a real estate consultant that lives and works downtown, I can say with confidence there is still strong demand. Buyers are taking their time, shopping around, and making informed decisions–a positive change that will raise the bar for innovation and quality.

Russ – great point about the cost/sq ft. That’s one of the first calculations I do BEFORE I’ll even go out to look. Location counts for something, but not for everything. I saw a site one day that was offering a 360 sq ft (not a type-o) for $80,000. That’s $222/sq ft! For what? Shit, I could live in a 760 sq ft insulated garage made from a kit at Menards for $3450 – who’s got a yard I could put that in?

So back to the Northstar thing, does anyone have examples of land along the route through the northwest that have sold to prove this? Sure it sounds right in theory, but is it actually happening? What about down the Hiawatha Line? Has anyone gotten rich off that?

I feel that the cities are going to soon go back to single-family homes. With the abundance of condo’s going up in Minneapolis the market is overwhelmed and contractors and having a hell of a time selling them and they are beginning to lose money.

The popularity of condos is not going to chage any time soon. Sure, the amount of new builds will slow down – right now we are in a correction for years and years of urban neglect by the people of Minnesota. Rising fuel prices, increased public transportation, and the plethora of new downtown public projects will keep pushing people to move downtown for years to come. Look to great European cities for a precedent of how transportation and fuel prices can create this type of environment. Also, if look at the clientele that are buying these condos – usually rich old white people who frequently live in multiple states – you may be convinced that this trend is not going to end any time soon.

The market will crash and you will all lose your asses. Just a reality check.

The best year to buy Real Estate was last year…..ALWAYS. There may be an influx in inventory, but the prices are starting to correct themselves. Interest rates currently are at a 14 month low and prices have fell about 10% over last year. For those skiddish buyers out there, please stay out there, the market doesn’t need you. Sorry but it is the truth. Along with our unemployment rate being lower than the national average, our overall population continuing to grow and the avg median price of our homes – OUR MARKET IS STABLE. The prices are dropping in order to correct the market, rates are low and aren’t getting much lower. If you are a buyer and thinking of buying, now is the time to buy. IT IS A BUYERS MARKET. Lofts and condos are being built and they will continue to be built downtown. You can get in now where prices are $250/$300 per square foot or you can wait until next year when the prices go up. Your only other option is to buy a pre existing condo that might be closer to $200 per sq foot.

Good luck to you all and don’t be scared to buy Real Estate. Only be scared if you are looking at it for a short term investment. If that is the case don’t buy – rent.

Good luck

I never did the see the value of condos. Your attached to somebody elses house and you can practically buy a house for the price of a condo. Its like living in an apartment.

Thread necros are hawt