The
past 5 years have seen fair nominal price growth resulting in double digit real price for the prior 7 years. This however abruptly changed in 2006, as Minneapolis experienced its largest nominal price drop on record and second largest real price drop. Fortunately, the mortgage-debt-to-income ratio has only slightly increased over the past 5 years despite a national increase, indicating there should be little concern about a massive Minneapolis market bubble. However, due to national and local consumer sentiment it is likely that nominal prices will stagnate short term before returning to a long term growth phase.
SEE PRIOR MINNEAPOLIS PEAKS & TROUGHS Next >
|
Year |
|
|
|
|
Minneapolis
Mortgage-Debt-to-Income Ratio |
National
Mortgage-Debt-to-Income Ratio |
2001 |
$165,400 |
10.8% |
$187,700 |
7.9% |
15.1% |
17.8% |
2002 |
$180,500 |
9.1% |
$199,600 |
6.3% |
15.1% |
17.5% |
2003 |
$197,000 |
9.2% |
$214,000 |
7.2% |
16.0% |
18.3% |
2004 |
$214,500 |
8.9% |
$227,300 |
6.2% |
16.7% |
19.6% |
2005 |
$230,700 |
7.5% |
$237,700 |
4.6% |
18.3% |
22.6% |
2006 |
$228,300 |
-1.1% |
$228,300 |
-2.6% |
17.2% |
21.7% |
|
