A new (ish) report by RISMedia reveals some facts about the Minnesota real estate market that might surprise even the most plugged-in of real estate nerds. According to the 2007 Power Broker report – essentially a ranking of national real estate brokers, along with other stats – good old flyover Minnesota garnered a top three ranking in real estate sales volume, number of agents, and total transactions.
As you can see in the graphics posted below (click for bigger) in 2006, Minnesota ranked number three in total real estate agents (22,000+) and sales volume ($64.5 Billion, trailing only California and top ranked New Jersey) and number two in total transactions (208,000.)
One would think this would be driven by population density more than anything, so we are not sure exactly what to make of these surprising results. Perhaps a combination of high home ownership rates, a vibrant second home market, relative affordability, and lots and lots of agents to stimulate demand? Your guess is as good as ours.
Ranked 3 in Total Sales Volume
Ranked 3 in Number of Licensed Agents
Ranked 2 in Transaction Sides
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{ 3 comments… read them below or add one }
“Perhaps a combination of high home ownership rates, a vibrant second home market, relative affordability, and lots and lots of agents to stimulate demand? Your guess is as good as ours.”
Higher than national-average use of exotic loan products?
(6-times-income Option ARM/Interest Only/Negative Amortization loans)
Chuck – Minnesota does not have a higher than national average use of exotic loan products.
In 2006, 4.7% percent of purchases used Neg-Am/Option ARMs. The national average is 6.6%.
Source (free reg req’d) http://www.loanperformance.com/market_pulse/default.aspx
A Mega-Tsunami of ‘Flipper’ properties?
Huge sales to jobless/homeless people?
(judging by recent Star Tribune articles, the latter seems likely)
Seriously, Minnesota is not even in the Top Ten States, population-wise.