Another MICRO example of housing market- greater Minneapolis area

[GON]

Yesterday I had lunch in El Paso with a friend. His wife ended up taking a job in the greater Minneapolis area. He works for the Border Patrol and will retire soon and follow his wife to Minneapolis.

They looked for some time for a home in the greater Minneapolis. Everything they liked they were too late to the dance-- the house was already under contract. They ended up buying a very small home that was listed for $350k USD--- for $370k USD.

Their "micro" experience mirrors my observations. Good homes are getting full market price plus and going under contract +/- 48 hours after being listed.

My new speculation thought-- any home listed for over five business days and not under contract likely is a undesirable home that the seller is asking full price by square foot comparisons with desirable homes. Homes listed over five business days don't need to be toured--- although one can never tour enough homes as part of the learning process.

 

[AZjeff]

I pay attention to sales in our 2300 home development. Nothing i know of has sold in 2 days in the past 6 months, maybe longer. A house on our street sold in under a week early in the summer because it was under priced in the market. Cash sale and it became a rental. Properties sell between $400k and $750k usually $5k - $15k under list. I think realtors are advising sellers to keep prices up. One realtor sends out a monthly report specific to this development. The local MLS says average time on market for our town July 2025 was 52 days and for neighboring Prescott was 72 days. It looks like what sells property quickly in our market right now is perceived value pricing.

 

[CKN]

Very nice houses in my neighborhood in a state ranked near the top in many categories are now sitting on the market instead of selling immediately-above asking prices. But we are talking homes that are now between $600,000 and 1plus million dollars.

 

[SC Maintenance]

I agree all housing markets are local.

It makes sense in a low volume market that only the best houses would sell. I guess if there all selling above ask thats simply a pricing game by the realtors - going going gone, price war, 25% auto rebate style?

Something worth noting is the MSP housing prices (blue line) vs the 20 city index (dashed red line) has significantly underperformed the rest of the country since 2004 and especially since 2020. Buying anything in a major city worth owning for $370K is pretty inexpensive I think? I would rather be buying in MSP right now than somewhere like Austin.

I hope your friend likes it. Tell him to bring his Parka!

 

[Mcbeem5]

I pay attention to sales in our 2300 home development. Nothing i know of has sold in 2 days in the past 6 months, maybe longer. A house on our street sold in under a week early in the summer because it was under priced in the market. Cash sale and it became a rental. Properties sell between $400k and $750k usually $5k - $15k under list. I think realtors are advising sellers to keep prices up. One realtor sends out a monthly report specific to this development. The local MLS says average time on market for our town July 2025 was 52 days and for neighboring Prescott was 72 days. It looks like what sells property quickly in our market right now is perceived value pricing.

I have been looking at Prescott AZ on realtor.com for 18 months, it seems that all the listings are 40-55 year old homes that you can see in photos needs work or 1200 SQ. FT. New Constuction on a post stamp size lot for $390,000 ?? Where is all the 15-25 year old homes?

 

[JohnnyG]

When you define "good home" down here these days, it generally means it's not 3 ft away from your neighbor!
They are packing them in TIGHT!

 

[SC Maintenance]

I pay attention to sales in our 2300 home development. Nothing i know of has sold in 2 days in the past 6 months, maybe longer. A house on our street sold in under a week early in the summer because it was under priced in the market. Cash sale and it became a rental. Properties sell between $400k and $750k usually $5k - $15k under list. I think realtors are advising sellers to keep prices up. One realtor sends out a monthly report specific to this development. The local MLS says average time on market for our town July 2025 was 52 days and for neighboring Prescott was 72 days. It looks like what sells property quickly in our market right now is perceived value pricing.

I live in a master planned sub. Realtor.com says average days on market is 42, and Redfin says 98. My unscientific survey says Redfin is more correct although I will say a few houses this summer did sell fast, and I will agree they were "underpriced" relative to the rest.

 

[AZjeff]

I have been looking at Prescott AZ on realtor.com for 18 months, it seems that all the listings are 40-55 year old homes that you can see in photos needs work or 1200 SQ. FT. New Constuction on a post stamp size lot for $390,000 ?? Where is all the 15-25 year old homes?

Prescott has very little raw land in the city limits and apparently was built out long ago. Having a Prescott address is a "thing" and people are willing to deal with what you see to get it. Lots of properties of all prices, ages, and types in the surrounding area.

 

[14Accent]

I sold my 1905-built home in North Minneapolis in 2023, listed for $244,900 and sold for asking within 48 hours. Purchased a scant 9 years prior for $144,900 and didn't put much into it. Pretty much free equity.

I couldn't bear the property taxes anymore. Started out @ $1,400-ish, 2024's taxes were well over $4k.

 

[Mainia]

I sold my 1905-built home in North Minneapolis in 2023, listed for $244,900 and sold for asking within 48 hours. Purchased a scant 9 years prior for $144,900 and didn't put much into it. Pretty much free equity.

I couldn't bear the property taxes anymore. Started out @ $1,400-ish, 2024's taxes were well over $4k.

19 Billion gone with no trace, now a 5 billion deficit. Who could ask for more from Minnesota. But more taxes, with zero accountability. Local news is blinded by love.

 

[jws926]

Prescott has very little raw land in the city limits and apparently was built out long ago. Having a Prescott address is a "thing" and people are willing to deal with what you see to get it. Lots of properties of all prices, ages, and types in the surrounding area.

Lol really?, having a Prescott address is a thing? when did this happen?

 

[KrisZ]

That’s has always been true with pretty much everything. Cars, collectibles, houses, whatever. If the thing you’re selling is in good shape, doesn’t have some weird things/colors going on, and you’re asking a reasonable amount, it will likely sell fast, even if the market is not favorable.

 

[AZjeff]

Lol really?, having a Prescott address is a thing? when did this happen?

Don't know when but it is for some people. Daughter worked with a guy who was trying to buy a hot mess of an old small house that needed everything to have a house "in the pines" in Preskitt. Bank wouldn't go for it. You wouldn't believe where people are building houses, lots that have been so steep nobody was ever interested are now being excavated and giant retaining walls built because it's in Preskitt.

 

[Mcbeem5]

Prescott has very little raw land in the city limits and apparently was built out long ago. Having a Prescott address is a "thing" and people are willing to deal with what you see to get it. Lots of properties of all prices, ages, and types in the surrounding area.

Started looking just outside city and I was stunned by how close together many homes in developments were,reach out and touch your neighbor.These were 15-20 year old places about 1200 Sq. foot and priced at $499,000.It seems to me that is pretty overpriced.I noticed in the area sales must be slowing down,alot of adds say price reduction $10,000.

 

[Owen Lucas]

Started looking just outside city and I was stunned by how close together many homes in developments were,reach out and touch your neighbor.

I can't live live like that.

 

[AZjeff]

Those look like double wides, not surprised. @Mcbeem5 what is the address? 1700 sq ft 5 YO houses on decent lots are under $500k in my development.

I can't live live like that.

Luckily you don't have to. I didn't grow up like that in small town Pa but there were neighborhoods in town that tight. Not new.

 

[Mcbeem5]

Those look like double wides, not surprised. @Mcbeem5 what is the address? 1700 sq ft 5 YO houses on decent lots are under $500k in my development.

Luckily you don't have to. I didn't grow up like that in small town Pa but there were neighborhoods in town that tight. Not new.

Pretty sure I had on search engine on realtor.com Single family $400,000 and up here is another photo of nearby development I believe these were around $525,000

 

[GON]

Pretty sure I had on search engine on realtor.com Single family $400,000 and up here is another photo of nearby development I believe these were around $525,000

View attachment 297439

That home highlighted in red is a nogo.

A side garage is a very desirable feature, except when it connects to the front entrance. Had the garage door been on the opposite side, with a side driveway- very nice feature. This home was forced on the lot because of greedy developer. That would be a sign of warning for the entire subdivision.

Had this home been in let's say San Diego, where land is beyond extremely valuable, the side garage to the front door may be only option. In wide open Arizona, this is a sign of no care for the occupants/ buyers. I suspect the streets are also narrow.

 

[Mcbeem5]

Posted for AZjeff to see! I had to search for this Photo,these were around $400,000 look at the rooflines how close these places are!

 

[AZjeff]

Thanks. I live nearby, still would like an address to see if I'm familiar with the neighborhood.

In wide open Arizona, this is a sign of no care for the occupants/ buyers. I suspect the streets are also narrow.

This is a bit of a misconception. Around 18% of land is privately owned in Arizona. You can't build on the other 82% of State, Federal, and Tribal land. It's why raw land is so expensive compared to other places and houses get built on lots that would never be considered elsewhere and people buy them.