Condo Market: Where did the listings go??
I have been carefully watching the Minneapolis condo/loft market since 2002; in those ten years I have witnessed many changes, but today's observation was truly unique. At Grant Park and Skyscape Condominiums with over 500 residences, there was literally one unit for sale. There is virtually nothing to show my clients.
This week I also learned that at Grant Park the percentage of the units now leased by owners to renters has reached 27%; that is over a 50% increase in just over a year. More owners who need to make a move are opting to lease rather than sell. Of course, this has been effected by many owners with negative equity due to approximately a 30% decline in market value over the last five years.
Ironically, there an increasing number of potential buyers for these units frustrated by the very low selection. As I surveyed other complexes today the selection does vary; Loring Green and The Carlyle, for instance, have fairly good selection of 8-10 units active with some excellent values. However, overall there is a shortage of condos in the $200-300,000 range.
My suggestion to owners weighing leasing versus selling: Before accepting the responsibilities of being a landlord, carefully analyze the current market with a realtor who really knows your market; there may be the possibility to help you sell and move on without owning a rental property.
My suggestion to those wishing to own versus renting: Contact an experienced realtor in the area you wish to move to and tell him or her what you are looking to buy. Many realtors know "potential sellers" who may be able to move if we present a specific proposal; I love to help sellers and buyers find a win-win scenario!