Delinquencies and foreclosures
As of this past December, 0.3 percent of Minnesota mortgages were
in foreclosure, less than half the national rate of 0.8 percent, according
to CoreLogic. Only Colorado and Rhode Island had lower foreclosure-inventory rates. Minnesota’s serious delinquency rate — those mortgages
more than 90 days past due — was 1.4 percent in December, just a little
over half the national rate of 2.6 percent.
Foreclosure activity in the state declined steadily after peaking at more
than 10,000 auctions and REOs in third-quarter 2009, based on estimates from Attom Data Solutions. Only about 2,000 new foreclosure
actions were reported in each of the last two quarters of 2016, a low
not seen since before 2008. Attom Data has not reported on defaults in
the state since third-quarter 2011, but defaults accounted for fewer than
100 foreclosure actions per quarter previously.
Minnesota’s unemployment rate never rose above 8.1 percent during
the Great Recession and was 7. 9 percent when U. S. unemployment hit 10
percent in October 2009, according to the U.S. Bureau of Labor Statistics.
The state’s unemployment rate declined slowly over the next five years
to a low of 3. 7 percent in March 2015 when the national rate was 5. 4
percent. Statewide unemployment increased slightly since then, and
stayed at 4 percent throughout the second half of 2016, 70 to 90 basis
points below the national rate. The Minneapolis/St. Paul metropolitan
area unemployment rate dropped to a low of 2.9 percent at the end
of 2015 before notching upward and ranging between 3 percent and
4 percent for most of 2016, ending at 3. 6 percent this past December.
Sources: Attom Data Solutions, Bureau of Economic Analysis, CNBC, CoreLogic, Duluth
Area Association of Realtors, Duluth Chamber of Commerce, Forbes, K W WL.com,
Minneapolis Area Association of Realtors, Minnesota Realtors, Minnesota Management
and Budget, Money, Rochester Convention and Visitors Bureau, Shenehon Center for Real
Estate, Southeast Minnesota Realtors, Twin Cities Pioneer Press, University of Minnesota
Extension, U. S. Bureau of Labor Statistics, U. S. Census Bureau
Will McDermott is editor of Scotsman Guide Residential Edition.
Reach him at (800) 297-6061 or firstname.lastname@example.org.
Home to the world-renowned Mayo Clinic, Rochester has more going
for it than just great health services. Once named “Best Small City” in
America by Money magazine for having the sophistication of a large city
without the congestion, it was honored by Money again in 2016 as the
“Best city in the U.S. for women who work.” Affordability is a key perk.
The median sales price of a home in Rochester is $197,000, while the
median household income is $64,554.
Home to more than 3. 5 million of Minnesota’s 5. 5 million residents, the
greater metropolitan area of Minneapolis and St. Paul, the Twin Cities,
dominates the state’s economy and politics. Seventeen Fortune 500 corporations are headquartered in the Twin Cities, including Target, 3M,
U.S. Bancorp, General Mills, and Ameriprise Financial. The median sales
price of a home in the Twin Cities as of this past January was $232,900, a
5. 9 percent increase over the previous year. Median household incomes
are $61,492 (Minneapolis) and $48,757 (St. Paul).
Nestled on the Western shore of Lake Superior, the third-largest city in
Minnesota is the state’s major port and the biggest inland harbor in the
world. Duluth gained prominence in the 1960s after the St. Lawrence
Seaway connected the Great Lakes to the Atlantic Ocean. Once fueled by
steel, the port is now kept busy with grain, coal and taconite shipments.
The median sales price of a home in Duluth in 2016 was $161,459, a
4.2 percent increase over 2015.
3 Cities to Watch
Minnesota Foreclosure Filings
Source: Attom Data Solutions