As 2008 is well underway, Minnesota is following the trend of the previous year and continues to experience extremely high numbers of foreclosure homes in areas across the state. Minnesota has traditionally been a rather stable market, but due to the widespread presence of adjustable rate mortgages, it has not escaped the firestorm of foreclosures that has swept the national housing market.
So far, the hardest hit region of Minnesota in 2008 has been Hennepin County, which is home to the state’s capital of Minneapolis. Hennepin County encompasses all kinds of areas, from thick, urban downtown areas to rural and serene suburbs, and statistics show that the foreclosure wave has affected all income levels and properties within this area. During the month of January, the Hennepin County Sheriff’s office recorded a total of 711 foreclosure property sales. This shattered the previous record set recently in October 2007, when 561 homes were sold through foreclosure proceedings. To get an idea of how bad the situation in Hennepin County and Minneapolis has gotten in terms of foreclosure homes, all you have to do is look at the numbers for 2002, barely 6 years ago, when 920 foreclosure homes were sold in the county for the entire year.
Foreclosure homes are typically most prevalent in urban areas in many states, and it’s true that Minneapolis is not as bad off as other cities. The Minneapolis/St. Paul area registered at about #60 on the list of urban areas with the highest rates of foreclosure in 2007. However, the situation is still expected to get worse in 2008. From 2006 to 2007, Hennepin County saw an 83% increase in the amount of foreclosure homes sold, and with the housing market still slumping, these early statistics for 2008 appear to indicate that things are going to get worse here before they get better.
However, Minneapolis does have a lot going for it. It is a growing city with great resources that is attracting a lot of new business and investment despite the slumping housing market, and that’s a good sign, especially for foreclosure homes investors. If you’re looking to cash in on the low prices offered by foreclosure homes, now might be a great time to look into the Minneapolis market. Buying in higher income suburban areas or more affluent areas of the city could turn out to be a great investment once the market rights itself, as this world class city is primed for economic expansion, especially if the housing market can right itself soon and stop having a draining effect on the overall economy.
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