Twin Cities Real Estate Ripe for a Fall?

by Alex Stenback on July 14, 2005

Kiplinger_1 The current feature story at Kiplinger Personal Finance draws our attention to a study by mortgage insurance provider PMI, which identifies 13 risky, or potentially risky housing markets. 

According to the article, The Twin Cities is the ninth riskiest housing market in the nation:

"Minneapolis-St. Paul. Housing prices in the Twin Cities have climbed an annualized 9% over the past three years. Still, PMI places the odds of a downturn at one in four. With Northwest Airlines, a major area employer, facing problems, job growth and payrolls are stagnating."

Pinning the risk of our market on recent appreciation stats and Northwest Airlines "problems" is mostly a crock, we think (there are only 18 other fortune 500 companies and 10 of the largest private companies in America based here.) Though it is true that the Twin Cities have seen tremendous increases in housing prices over the last 5 Years, and we’re not a risk free market by any means – labeling the Twin Cities as ‘more risky’ than both Miami and Tampa Bay (or anywhere in Florida for that matter) is beyond absurd.
· The 13 Riskiest Housing Markets [kiplinger.com]

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