MINNEAPOLIS (WCCO) — Metro area home prices have climbed to a record high — and people are still willing to pay.

The Twin Cities’ housing market is in high demand, thanks in part to a generation getting ready to settle down.

The median home price in the Twin Cities in 2017 was $246,000, but don’t tell that to new homeowner Lauren Cox.

“We kind of knew pretty early that this was a serious house for us,” Cox said.

And her St. Paul home came at higher cost than expected. Why?

“We still get the perks of the city, but kind of some of the benefits of a suburb, too,” Cox said.

Those neighborhoods, with the single-family homes within city limits, are in high demand, according to realtor Kath Hammerseng.

housing sold sign Millennials Help Sustain Twin Cities Housing Market Boom

(credit: CBS)

A big factor driving costs up is millennials. They make up more than a quarter of the nation’s population, and they are starting to think about the next chapter.

“They’re wanting to put down roots, they’re getting their student debt under control, their careers are taking off,” Hammerseng said. “Now they’re looking for homes and at the same time we’re looking at interest rates that are really at an all-time low still.”

It is a sweet spot for buyers, especially compared to similar cities nationwide. It is even better if you can play the game, or if you can afford not to.

“Twenty offers, cash, all the stuff that we really couldn’t do, we’re like, ‘Well, let’s plan a bit more money,’” Cox said.

And if you are considering selling, Hammerseng says take these signs of the times as, well, a sign.

“For sellers, it’s a fantastic time,” Hammerseng said.

For buyers, stay patient. Hammerseng’s two cents: Educate yourself on what you can afford and take your time. But there is one rule that’s perhaps the hardest to follow.

“Try not to fall madly in love, because it’s really common for people to write one, two, sometimes six or eight offers,” Hammerseng said.

Those single-family starter homes might be the highest in demand, but when you look at price fluctuation, the west suburbs are a whole different story.

In 2013, Wayzata’s median home price was $359,000. Last year, it was $905,000.

Christiane Cordero

Comments (3)
  1. I don’t want to be a stick in the mud but this reminds me of 2006. None of the fundamental problems from the last economic crisis has been properly dealt with, the government has just kicked the can and doubled our national debt. More people are working but are underpaid and underemployed. Unemployment is down because they don’t count the tens of millions who have given up looking for a job. not to mention that student and credit card debt is at an all-time high. Go back and watch youtube videos about the U.S economy and the housing market in 2005-2006 and think it over.

  2. Let me explain something to the liberals in their bubble. You people somehow managed to import 50 million people into this country during the Obama reign of terror. They flooded the housing markets. Displaced your prime voting block, the black welfare dependent Democrat voter. Those people have flooded the apartments and housing in all the suburbs, far suburbs and apartments in ultra rural farm country towns with populations of 250. They don’t work. They wander the streets and peddle drugs like they did in Minneapolis, Brooklyn Park, Brooklyn Center and all the other Democrat controlled enclaves. Now we have an artificial housing shortage. Mortgage interest rates are rising. Home listing and sale prices are ABOVE the bubble of 2005-2008. Domestic and international investors have paid cash for most of the homes listed below $300K and threw them on the rental market, inflating the rents for families by wide margins. Not putting a penny into cleaning them up or do basic repairs, only when the renter demands. Families around me are placing ads to find someone to illegally sub rent rooms and basements to pay the rent. You Democrats created this disaster. It’s right in front of our faces. It’s not sustainable. I hear the same criminal Realtors telling us everything is going great, as they did in 2006-2008.

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