"Cheaper Than a Car"*

Metro Homes Under $40k

According to a quick search on MLS this morning, there are exactly 463 residential properties in Minneapolis and the West 'burbs for sale for under $40k.

To be sure, the majority are in rough condition, in tougher neighborhoods; the ones that aren't, are typically condo's.

Small condo's.

But still.

When even a crummy studio apartment fetches something like $500 in the Twin Cities, a monthly house payment of $200-$300 (PITI on a $40k property, assuming $1k down and 4.5% interest) sure seems compelling!

*Thanks to City Lakes' Budd Batterson for that line (he has an upcoming Robbinsdale condo that is -- cheaper than a car, that is). And yes, at $40k it would be a very nice car.

Shrinking Supply

Market Tightens While No One's Looking

Quick quiz:

When was the last time that Twin Cities housing inventory was as low as it is now?

A. June, 2008
B. January, 2003
C. August, 2001
D. March, 2006

Correct answer: D.

What's so significant about that?

Tight supply -- along with easy money -- was the kindling that lit a fire under home prices . . . right around early 2006 (at least, that the was last, big upward move).

Hat tip to City Lakes' Budd Batterson for that statistic.