In a recent article I read provided by CNBC and Yahoo real estate about local housing market accross the nation Minnesota real estate market ranked #2. It’s obvious the Minnesota real estate market has taken it’s lumps like all other markets accross the nation however Minnesota seem to be primed to be one of the first to bounce back when the housing market recovers and starts to take off.
LendingTree analyzed numbers in all fifity states to find which market were ready to bounce back and which were least likely to bounce back or take a long time to recover. To Analyze the Minnesota real estate market and other market around the nation the looked at five pieces of criteria: Debt to income ratio, loan to value ratio, negative equity, home ownership, and unemployment.
The top five areas where:
1) North Dakota
3) New Hampshire
The Minnesota real estate market has a low rate of unemployment comparative to the rest of the country and that is what stands out most. We have many great national and international employers. Minnesota’s debt to income ratio was at 17%, the unemployment rate at 6.7%, homeownership at 72.6%, loan to value ratio at 65.6%, homeowners with negative equity 22.2% and the avergae sales price $224,000.
I think this is GREAT news for the Minnesota real estate market, however I would be cautious as I have seen some higher numbers at least in the Shakopee real estate market. Currently as of April 22nd, 2011 we are sitting with 293 homes currently active on the MLS. Of those 293 homes, 84 are short sale homes and 53 are foreclosures. I think this shows the further out from the Twin Cities area, typically those homes were built during the boom period, and less people have equity in their home.