The state of Minnesota takes care of its own. The economy is robust and does well to preserve an equally healthy housing market. The data from the US census paints Minnesota as a prosperous place to live, with only 7.9% of its population below the poverty line, close to half the national average of 12.4%. The median household income in Minnesota is above the national average, yet another indication of the vital economy. The median household income was listed on the 1999 US census as $47,111, compared with the national average in the same year of $41,994. Homes cost a little more than average in Minnesota, with the median value of owner occupied housing units being $122,400 in the 2000 census, compared to the national average of $119,600. This doesn’t seem to adversely affect the home ownership rate in the state however, as it stood at 74.6% in 2000, almost ten percent higher than the average nationwide of 66.2%.
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The continued strength of the local housing market in Minnesota can be chalked up to the thriving economy, and to the growing jobs market. In a recent article, David Lereah, NAR’s chief economist, predicted that with the U.S. GDP on a very positive track, the unemployment rate is likely to drop to 5.4 percent. Impressively, unemployment in areas such as the Twin Cities has held steady around the mid 4% range.
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The cooler weather has affected the real estate market, but only slightly. Comparatively, the market is not too different from last year at this time. The percentage of single-family homes sold at list price is down, but only slightly. For a comparison, currently it is 98.92 percent. In May 2003, it was at 99.20 percent. The average estimated sold price dropped down to $309,186 compared to $314,049 in May 2003. The average market time hardly shifted, being 30 days this year compared to 28 days on market last year. Homes not selling is also similar, with 168 homes that did not sell this year being very close to the number of homes not sold in May 2003, 170.
With indications of a steady rise in interest rates, the market has remained active. The spring and summer months are traditionally the most active, however the average days on market has not reduced accordingly with seasonal expectations.
It looks like the cooling weather is having little effect on the booming market in Minnesota.
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