$150,000 is the Magic Number and First Time Home Buyer Minneapolis

The magic number is $150,000. Houses that sold under $150,000 are up 133% since last year at this time. That is a lot. What does this mean? I think it means you should not buy a house over $150,000 unless it is a very nice house or it produces a lot of income. We are expecting to see more foreclosures this year compared to last year, and we had a lot of foreclosures last year. I think the deals are in the $100,000 price range. I have seen countless deals in that price range. The good thing is if you are buying a house for the first time right now, this is great news. You can probably find something cheaper then what you’re paying in rent. The thing is that prices are so low right now; you can actually buy homes that if rented out will produce cash profits. Money likes money and more and more people will see this opportunity. I think prices are going to continue to drop, probably not as much as they have since 2005, but they will slowly drop for a couple more years. So the key is if you are buying a home to live in, see if there is equity to add to the home such as an unfinished basement, or a big yard. If you are thinking about buying for an investment property, then find something that in 10-15 years will still be a desirable home. I like houses built in the 1940-1950s, because I know people will still live in them fifty years from now, because people are living in homes that are 100 years old right now. If you are thinking about getting your hardwood floors refinished in Minneapolis give me a call. Or if you’re a first time home buyer in Minneapolis give me a call and I can show you some houses.