01-22-08 1B Market Study - Laserfiche WebLink

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FOR-SALE MARKET ANALYSIS ~ Mid-rise condo units will probably not be back for the foreseeable future. ~ Real estate agents and brokers say they are experiencing the worst of the declining mar- ket as they try to move housing in a market saturated with new construction. One broker called herself "gloom and doom," saying the only demand she was currently seeing was first time homebuyers looking for very affordable housing - or the "super high end" of $2 million dollar houses. She also called Arden Hills "a nice area, little more expensive, maybe comparable to Eden Prairie, not real upscale." ~ At this time, few developers are looking at new projects. Many report a two-year inven- tory of new single-family and multifamily homes that need to be sold before construction will resume. The most common date given for a market return was 20] O. ~ The market is turning from a "build-sell" housing market to a "sell-build" market, which is as it should be, said one developer. He said he believes too much housing was built on speculation over the past few years, creating a two-year excess inventory of for-sale housing in today's market. ~ Any development should include a mix of rental, said several builders, and there still ap- pears to be a steady market for entry-level and move-up townhomes. ~ The biggest pull back in housing development is occurring in places like Albertville, New Prague and New Richmond, WI - those "drive to affordability" places, said one builder. Arden Hills will not find itself caught in this market correction, he added. ~ Arden Hills should see itself in a unique position, said a builder. "It is insulated from the overall market, housing is in limited supply, it has a strong community, decent job growth, good employers and a good sub-market." 49 MAXFIELD RESEARCH INC.