Regardless of the area of The North Star State from Minneapolis, Saint Paul to Rochester, from Duluth, Bloomington to Plymouth, or Brooklyn Park, to Saint Cloud, or any town or city in between Minnesota like all other states has been affected by the global economic meltdown which followed the mortgage meltdown that preceded it.
Foreclosures are in no short supply in Minnesota. The state ranks in the 28th in this dubious honor. The slightly blow average number of foreclosures is in large part due to Minnesota's incredible success of decades of economic diversification. The state has transformed from an agrarian and fur trading economy to a far more varied and robust economic engine which is exemplified by the fact that 33 of the top 1000 publicly traded companies are headquartered in Minnesota. Companies as different from beaver pelts include United Health Group, 3M, Bancorp and Radisson Hotels all call Minnesota home and provide a stable economy by employing thousands of citizens.
The citizens of Minnesota have the 5th highest household income in the nation. Along with the revolutionary transition of the economy was the migration of the residents of the state. This transition has created a density of population that has 60% of the entire states population living in the Minneapolis Saint Paul metropolitan area. The majority of the remaining population lives in Rochester, Duluth or Saint Cloud. With small enclaves of population spread across the state.
Regardless of the causes of the migration to the major cities and suburbs the facts are that foreclosures in Minnesota are on the rise and should be for the near future. Most experts agree that the foreclosure epidemic in the state was caused almost exclusively by the sub-prime mortgage market collapsing under its own weight and the repercussions will be felt through the next several years. This is made more evident by the fact that unemployment in Minnesota has been among the nations lowest during the recent recession. While the national average rests at 9.7 percent, Minnesota has held steady at 7 percent. The states robust economy, although currently stalled should rebound faster than the national average but will require the subprime mortgages be purged from the system. The sub prime mortgage meltdown being the primary reason the unemployment figure is as high as it is and a state foreclosure ranking of 28 in the nation.
Until the sub-prime mortgages have been purged via refinance, sale or foreclosure, the number of foreclosures will continue at its current pace. Until such time wise investors are looking at foreclosures as the best investment of our time. The real estate investment environment is unlike anything the residents in Minnesota have seen before and should not be overlooked by both professional investors and homebuyers new to the market.
You should be buying homes that have gone to foreclosure. Buying as many homes below market as your credit can withstand. Why buy in a down market? Buying in a down market instead of trying to time the market to purchase on the exact day that the market sees its lowest point will allow smart investors to buy more foreclosed homes and rent them out or selling before buying additional homes and repeating the process. Remember all of those people that lost their homes will still need a home to live in and provide their family shelter. This new real estate is where the greatest boom in recent history for the state of Minnesota will come from. If you are not in the game, get in the game.
The only major population hubs outside of the Minneapolis-Saint Paul metro area are Rochester, Duluth and Saint Cloud and are therefore somewhat less reliable regarding ease of resale. Buying foreclosed homes in communities outside of metropolitan areas may require a degree of additional patience in order to locate a home with an adequate degree of equity.