Photo by Spencer Platt/Getty Images.
At the height of the housing market frenzy in Minnesota this spring, stories abounded of homes purchased sight unseen, cash offers thousands above asking price and personal appeals to sellers from desperate buyers.
While there are some signs the market is slowing down as the summer goes on, it’s still a competitive one. Buyers are facing rising prices, limited options and fast-paced sales.
There’s also concerns that the frenetic market could worsen longstanding racial disparities in homeownership in Minnesota and across the country, as racial wealth and income gaps make people of color more likely to be priced out.
The similarities between the current market and the housing boom that preceded the Great Recession have many Americans on edge. But experts say the 2006 and 2021 housing frenzies have different underlying causes: The 2006 bubble was driven by questionable lending practices, while current trends are primarily due to years of lagging home construction.
Here’s more on Minnesota’s housing market, in five charts.
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