Minneapolis, Minnesota's Folwell and McKinley neighborhoods have been forecast as the "hottest" metro home markets for 2017 by Zillow Inc, according to Twin Cities Business.
Homeowners in these areas can expect to see their home values rise: Zillow projects a 7.8% increase in Folwell and 7.6% increase in McKinley.
Home buyers are turning to areas like the Folwell and McKinley neighborhoods in Minneapolis after being priced out of the market in their originally preferred areas, said Svenja Gudell, Chief Economist for Zillow.
"It's probably starting to be too expensive for some folks, so they start to look for more affordable neighborhoods," reported Gudell. "Minneapolis is at its peak: Homes are more expensive than they've ever been in Minneapolis."
St. Paul homes are significantly less expensive than Minneapolis homes, with an average of $185,700 compared to the $227,100 average across the river.
Minneapolis City Council President Barb Johnson trumpeted a bright future for Twin Cities home-seekers. "North Minneapolis has actually had the biggest value increases because we had such a big hit in the foreclosure crisis. The affordability for first-time home buyers is fantastic... You just get a whole lot of house for your money."
Other Twin Cities markets expected to increase this year:
- St. Anthony East, Minneapolis (6.8%)
- St. Anthony Central (6.78%)
- Dayton's Bluff (6.7%)