What To Do When You Can't Find A Home To Buy Under $150,000 In Minneapolis?
Home prices in Minneapolis are surging this year. That is a major problem for people who want to buy under $150,000. There are 10 buyers for each house, investors are making cash bids, agents are flipping homes. How does the typical first time home buyer compete? First, you have to have realistic expectations. The under 150k market in South and NE Minneapolis represents only about 10% of the market and by next year at this time it will only be about 5% of the market. So understanding that there just are not a lot of options out there and that supply and demand are going to work itself out is the first step to getting one of these homes. Second, you have to be open to making repairs, buying on a busy street, having a small lot, purchasing a home with a weird layout. Bottom line, you aren't going to get your dream home. You are going to get a small house, that will do well in the long run because the number of homes that are that cheap are limited and there will always be demand for affordable housing. Lastly, be open to other neighborhoods besides NE and south Minneapolis. I really like West Seventh, Hamline/Midway, and parts of North Minneapolis. Most likely this will be your 2-5 year home so don't think you have to live there forever. Ride the market for the next two years, hustle hard on your job so you increase your value to the market, sell in two years tax free and buy that bigger house if you want. Or just chill and build equity, or rent it out and buy something else. Too many times I see buyers pass up on good homes because it doesn't have granite, or there is something a little weird about it. Stop thinking short term and start thinking long term.