THE BRIX REPORT VOLUME TWO: “BOOMTOWN” Life and Real Estate in the Twin Cities
THE BRIX REPORT
VOLUME TWO: BOOMTOWN
On the cover: Hahn/Cock by Katharina Fritsch Minneapolis Sculpture Garden at the Walker Art Center Photo by Wale Deen Agboola
BRIX St. Paul 1390 7th Street West St. Paul, MN 55102 612-927-2749
BRIX Minneapolis 748 N 3rd Street Minneapolis, MN 55401 612-927-2749 BRIX Maple Grove 6885 Sycamore Ln N Maple Grove, MN 55369 Coming Spring 2018!
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BRIX Burnsville 201 W Burnsville Parkway Burnsville, MN 55337 612-927-2749
BRIX Real Estate is a boutique brokerage operating in the Twin Cities that puts clients first in every respect. By celebrating and refining the craft of real estate, participating in the betterment of our local community and taking great pride in the relationships we build, we work tirelessly to provide exceptional service and an elegant, streamlined approach to every aspect of our service.
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MASTHEAD Words & Design Luke Finsaas Cover & Market Report Photos Wale Deen Agboola Copy Editor Kristy Hanson MARKET R E P O R T D ATA Market Report Data represents 2016 compared to 2017 and represents all properties types, including single family homes, townhouses and condos. Source of all data is the Minneapolis Area Association of Realtors, Multiple Listing Service. Information is deemed reliable but not guaranteed. Š2018 BRIX Real Estate
CONTENTS
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L E T T E R F R O M B R I X R E A L E S TAT E
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THE CORNERSTONE OF THE NORTH LOOP The journey of the North Loop and its cornerstone restaurant, Smack Shack.
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GOING SOUTH OF THE RIVER Where there’s belly dancing, beer, and drive-ins.
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A WORLD BEYOND IKEA Go inside three of our favorite local boutiques.
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LIFE CHANGING TRAINING The fastest growing fitness concept in the world is F45. We talk to the owner of the South Minneapolis branch.
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LIVENING UP THE GHOST F. Scott as the neighborhood remembers: elegant, discerning, and always ready to jump in a fountain.
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ROGUE ARC MAKES THE STUFF YOU WANT We talk with the designers/artists/carpenters at Rogue Arc.
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T I M E T R A V E L I N S T. PA U L Heimie’s Habadashery is always in style.
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BRIX EVENTS Art, horses, and celebrations in 2017
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MARKET REPORT What Twin Cities neighborhoods did well in 2017? How will the Twin Cities do in 2018?
LETTER FROM B R I X R E A L E S TAT E
As we put the final touches on this second BRIX Report publication, it’s hard not to notice how far we’ve come as an organization. When we set out to open a brokerage almost 3 years ago, we could only dream of where it would take us. One of the main goals when we opened our doors was to create a brokerage that wasn’t just about excellently and elegantly selling real estate, but about sharing our passion for the Twin Cities as a whole. To this day we remain local and community focused. We strive every day to stay true to these values by participating in and serving our community and clients in multifaceted ways. We’re proud of our grassroots beginning and bursting with hometown pride. That pride is why we created the inaugural BRIX Report a year ago. It’s why we’re continuing the tradition with this second edition. Creating this edition and sharing our pride with our community is a representation of how much we love the Twin Cities: the unique shops, the epic food scene and the humble gracious people that make up the culture we live and work in. When you’re really passionate about something, it shows. So we hope you can feel it. Life is good, welcome to boomtown, we hope you enjoy! - BRIX Real Estate
THE CORNERSTONE OF THE NORTH LOOP
THE NORTH LOOP HAS been on a journey. Once home to a large railroad yard, industrial manufacturing left the neighborhood in the 1960s, leaving empty warehouses looming over the halfcobblestoned streets. The neighborhood turned into a ghost town.
Today, the North Loop is the fastest growing neighborhood in the Twin Cities.
But not for long. Within twenty years, the North Loop bcame the new hub of the Minneapolis art scene. At its peak, the Wyman Building (400 First Avenue N.) was home to more than twenty contemporary art galleries. Soon, the warehouses that once stored milling and manufacturing goods were being converted into private residences. Redevelopment has only accelerated.
Smack Shack’s journey parallels the North Loop’s, with its hard scrabble beginnings and subsequent success.
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Great neighborhoods need great restaurants and the North Loop does not lack in that category. One restaurant stands out from the crowd: Smack Shack.
The story begins behind the 1029 Bar, a Northeast dive bar notorious for the bras and shot-up police car door that adorn its walls. In 2010, food trucks weren’t allowed to roam free in Minneapolis so Smack Shack served 9
their Lobster Rolls out of an immobile food truck. After the restaurant was featured on Guy Fieri’s Drive-in, Diners, and Dives, the restaurant’s reputation grew. Smack Shack scratched an itch the city didn’t know it had. When they opened their storefront, diners lined 6th street, filling every seat in Smack Shack’s converted warehouse space in less than ten minutes. It hasn’t slowed down. In 2017, they opened a second location at MSP International Airport. Smack Shack is a rare place— comfortable, yet impressive. The kitchen is stacked with fine-dining culinary 10
talent, producing wonderful dishes presented on humble red-checkered tablecloth. You can impress a date or your grandparents. The paradoxes make sense, though, when you realize that paradox is baked right into the DNA of the restaurant: it’s a really good lobster joint in the middle of the North American continent. While no one knows where the North Loop will go next (see our Market Report for the BRIX 2018 Prediction), we do know one thing: go get a Lobster Roll. You do not want to miss out on this trip. THE BRIX REPORT
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GOING SOUTH OF THE RIVER
MEDITERRANEAN CRUISE CAFÉ 12500 Nicollet Ave, Burnsville The Mediterannean Cruise Café, affectionately known as The Cruise, is a family run hotspot in the heart of Burnsville. Their event calendar is usually packed with salsa and belly dancing, as well as other live entertainment. Insider Tip: Saturdays are Salsa Night!
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BALD MAN BREWING 2020 Silver Bell Rd #25, Eagan More and more craft breweries are making their way south of the river. Located in Eagan, Bald Man Brewing received the 2017 Small Business of the Year award from the Dakota County Regional Chamber of Commerce. A varied tap list, food trucks, live music, and Trivia Mafia makes Bald Man Brewing an excellent South of the River destination. Insider Tip: Work in the service industry? Inquire about their discount.
Insider Tip: Enter a spectator drag on Eve of Destruction nights to experience driving on the race track.
E L K O S P E E D W AY A N D D R I V E - I N T H E AT E R 26350 France Ave, Elko New Market Find something for the whole family while spending time outdoors in Elko New Market. Family friendly drive-in movies, car racing,
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and live music make this unique, seasonal venue an excellent option for family outings and visiting guests.
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A WORLD BEYOND IKEA
Fabric from the Martin Patrick 3 Furniture Selection Center
HOME GOOD BOUTIQUES ARE popping up on corners all over the Twin Cities, each with their own distinct style. Need an industrial lamp? No problem. A shiny gold skull? We have you covered. Read on for three boutiques that are doing it right. Forage Modern Workshop What do you get when you put together quirky humor, art, and high-end American-made furniture? Pure delight. Forage is a breezy shop of surprise and marvels. Each visit renders a new wonder: a tie-died, full-body pillow that looks like a friendly snake or handmade candle holders or a ring of neon as a table lamp. The shop is decidedly modern and clean, but by some magic, it feels unpretentious, inviting, and warm. Extra Perk: Forage shares space with Dogwood Coffee, arguably the best coffee in town.
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FORAGE MODERN WORKSHOP 4023 E LAKE ST
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FindFurnish Your grandfather might not know that his workbench would make an excellent kitchen island, but the folks behind FindFurnish do. They scour the country for unique vintage finds, hunting through thrift stores, main street malls, estate sales, barns, auctions— wherever they find themselves. What makes FindFurnish stand out is that they restore their discoveries to glory. If you’re a fan of mid-century modern, Danish modern, or classic industrial furniture (like grandpa’s workbench), you have got to visit their showroom in Northeast Minneapolis. FINDFURNISH 13 5TH ST NE
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Extra Perk: It Records, a used record shop, is in the back of the shop.
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Martin Patrick 3 In the middle 2000s, Martin Patrick 3 launched as two separate stores: a furniture studio and a high-end men’s boutique. Fast forward through three expansions over the past decade, the shops have been brought together, forming a full-fledge boutique department store. This place is a feast for the eyes: fragrances, watches, couches, shoes, crystal glassware, original art, and much, much more. They even offer Interior Design Services, helping the discerning select that perfect shade of crushed velvet. Do yourself a favor and take a stroll through this sassy labyrinth in the North Loop.
Extra Perk: Complimentary snacks!
M A R T I N PAT R I C K 3 212 3RD AVE N
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LIFE CHANGING TRAINING
An Interview with Adam Meyer
F45 TRAINING 5 4 4 5 LY N D A L E A V E S O U T H M I N N E A P O L I S , M I N N E S O TA
What do you like most about training people? about your gym? The first thing that attracted me to F45 was the workouts. I was living in Dubai and a friend of mine asked me to help him open an F45 studio there. The training program is designed by Australian professional Rugby players, and is meant to resemble how they train, but made accessible for a much wider audience of people. I am a former hockey player and these workouts just clicked for me right away. They are intelligently designed so they work every muscle group in your body in unique ways, giving you the mix of cardio and strength you need to have a well-rounded level of fitness. What I like most about our studio is the people. We have such awesome members. Our members
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range from 18 to 65 years old and all different levels of fitness. We have professional athletes and people just starting their fitness journey, training side-by-side and both getting exactly the challenge they need to keep improving. Our motto is “Team Training Life Changing.” Everybody comes in with a good attitude, no egos, and we all work together, supporting and encouraging each other. There is an abundance of high-fives being given out! You can’t help but leave in a good mood! How does F45 connect with its neighborhood? We feel so lucky to be in Southwest Minneapolis. The community has given us tremendous support since we opened. We took over an old Midas auto repair shop and did a major redevelopment of the property to create a fresh and clean space. We had
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tons of families come check out the space during our Grand Opening. We also try to do as much as we can to support the local businesses, fundraising groups and non-profits. We have donated quite a few items and continue to be involved in as many programs possible. What fitness trend needs to be over? I think it is some of the programs that put people at a high risk of injury. I’ve seen some of the heavy, olympic style lifting programs as well as some of the one-off bootcamps that are run by inexperienced people or have too large of a group to be able to keep an eye on people to offer modifications or corrections, which lead people to doing movements incorrectly and hurting themselves.
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What’s around the corner? Well, F45 is the fastest growing fitness concept in the world right now and it has just made its way to the U.S. recently, so I think you are going to see a lot more from F45. Our incredible technology platform, heart rate monitoring software and extremely efficient and effective workouts are tough to beat. I’m trying not to be biased, but in all honesty, F45 is the best training program I have ever seen or been a part of. The results we are seeing in our members speak for themselves, it is truly life changing. What’s the secret to long life and happiness? Maintain a good level of fitness. Meditate. Surround yourself with good people that make you laugh. Don’t over think things too much :)
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F45 offers a FREE two week trial, and they encourage everyone to come in and give it a try!
www.f45minneapolis.com @f45_training_minneapolis
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LIVENING UP THE GHOST
F I T Z G E R A L D ’ S O N C AT H E D R A L H I L L 173 WESTERN AVENUE N S T. PA U L , M N
ST. PAUL IS HAUNTED. You’ll find the ghostly presence everywhere: a bronze life-sized sculpture in Rice Park, a plaque on three Cathedral Hill homes, a four-story portrait over Wacouta Avenue. Wherever you go, it seems, the ghost of F. Scott Fitzgerald is presiding, stern and serious. But the neighborhood remembers F. Scott Fitzgerald the man very differently. Fitzgerald’s, an American bar and restaurant on Cathedral Hill, is dedicated to livening up its namesake’s ghost. F. Scott Fitzgerald became famous in the Jazz Age as key member of the “Lost THE BRIX REPORT
Generation”: ex-pat writers living extravagent lives in Paris and the French Rivera in the wake of World War 1. But his formative years were spent in St. Paul. Fitzgerald attended St. Paul Academy, danced at the University Club, bought cigarettes from the pharmacy of William A. Frost (now W. A. Frost), and lived in the Commodore Hotel with his wife, Zelda, until the birth of their first child. He hit up the neighborhood speakeasies, jumped into fountains, and showed up at parties in his pajamas, which were rumored to be removed shortly after arriving. 23
Fitzgerald’s, the restaurant, channels the writer’s spirit in their food and drinks. The result? Delicious cocktails. From the tea-infused “God Bless You Mrs. Palmer” to the smokey “Fireside Friend,” the drinks are balanced, boozy, and creative. But Fitzgerald wasn’t always a decadent big-spender. In fact, he spent most of the late-1920s borrowing money from his agent. Perhaps that’s why Fitzgerald’s sells Hamm’s beer at “MP” (Market Price), typically around two bucks. Chef Graham Messenger has designed a menu that is both upscale and inviting—a tough balance to find. Chicken liver 24
mousse sits comfortably next to nachos and fries. Golden pan-seared scallops with parsnip puree and mushroom conserva could irk a thrifty wallet but a top-notch pepperoni pizza goes for $12. Fitzgerald’s is a welcomed balance of refinement and comfort in Cathedral Hill, a neighborhood that boasts the longest stretch of Victorian mansions in the country. They’ve done such a good job reviving the spirit of Fitzgerald that who knows? You might find yourself at Fitzgerald’s bar, sitting next to the city’s most literary ghost.
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ROGUE ARC MAKES THE STUFF YOU WANT
An Interview with Matt Sand
ROGUE ARC 2 9 3 3 N 2 N D S T. MINNEAPOLIS, MN
What does Rogue Arc do? We are carpenters, welders, and masons. We are artists and woodworkers. We are designers trained in architecture. We are licensed contractors. We have designed and built commercial and residential remodels from 10,000 square foot buildings to 3/4 basement bathrooms, built-ins from staircases to kitchen islands to reception desks, free-standing
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furniture such as tables and benches, landscapes from trellises and pergolas to patios, walkways and stone stair cases, large and small scale storm water management strategies, solutions to framing failures, signage, play houses, theatrical sets, etc. Where might we have seen your work? CHS Stadium, Bauhaus Brew Labs, Uptown Theater, Dangerous Man Brewing Company, Excelsior Animal Hospital, Design Center Inc., West Parkway Apartments, outside Nighthawks Diner, Whittier Farmers’ Market, as well as in the houses, condos, and yards of several of the most tasteful and sophisticated people in the metro area. How has your work evolved over the years? It has gotten better and more expensive. What design trend are you wishing would die? What trend is around the corner? Reclaimed wood has certainly gotten a workout around here of late but its robustness may be keeping it from being tired - yet.
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The cycle of taste will swing away from the rusticated industrial hybrids back towards bellbottoms and mohawks, we think. Is there a Twin Cities “style”? The World Wide Web has made international influence easy to come by and recent examples of many styles are causing an array that is fairly cosmopolitan. That said, if “lumbersexual” can be embodied in building form it certainly has been established here.
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See more work at rogue-arc.com
What was your most satisfying project? The most satisfying project has been the complete renovation of a vacant building to become the home of the 4th Street Guild, a group of designers, prototypers, fabricators and builders, and which is our own new headquarters. We were given room and budget to design and build the space to the standards of our aesthetic and ecological sensibilities and did so with the assistance of the other members of the Guild. We were hands-on from conception to realization. We are now saving energy and saving water and designing and building in a fantastic space. Stop by to see what we’ve achieved and what we’re working on now: 2933 North 2nd Street in Minneapolis.
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TIME TRAVELING I N S T PA U L
HEIMIE’S HABADASHERY 4 0 0 S T. P E T E R S T S T. PA U L , M N
GETTING A HOT SHAVE with a straight edge razor isn’t a common experience these days—unless you’re a patron of Heimie’s Haberdashery, that is. The men’s boutique is located in the shadow of the famous St. Paul Hotel, near Rice Park. The shop sells tailored suits, cigars, hats, handmade leather gear for travel and hunting, as well as barber and tailoring services—all under one roof. As with every institution that’s been around for more than a century, the shop has seen its own ups and downs.
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Heimie Adler opened a tailor shop in 1913 on Old 7th Street. After World War II, Heimie’s son joined the fold and the shop became Heimie’s Menswear, offering tailoring and ready-to-wear men’s clothing until 1995 when it was sold to a private party, renamed, and closed less than a year later. But Heimie’s was far from finished. In 2004, Heimie’s great-grandson, Anthony Andler, got the entrepreneurial itch and reopened the family business on 400 Wabasha in its current form. Stepping into Heimie’s is like taking a trip back to the best of Old St. Paul, a time before phrases like ‘fast fashion’ existed. The haberdashers aim
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to help men discover timeless style and pieces— like a beautiful watch that can be passed down to a grandchild. While browsing the shop might feel akin to stepping into the previous century, it’s infinitely #grammable. Each item is carefully curated and presented, from the colorful silk handkerchiefs folded on the glass display case to the rows of exquisite suits. Whether you’re looking for a hot shave, a spot to kick-off a bachelor party, or a tailored suit, Heimie’s Haberdashery remains undoubtedly one of the best shops in town.
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2017 BRIX EVENTS
As is becoming tradition, BRIX Real Estate held two Customer Appreciation Parties in 2017. In the spring, attendees gathered at Canterbury Park in Shakopee to enjoy food and company, sip on beverages, and bet on horses. In November, guests gathered for an evening of surprises and laughs in an interactive night only BRIX could dream up. The Art of Real Estate was a celebration of all things cheesy in real estate—the clichÊd billboards, the bus benches at every street corner, and the bad taglines. Who knows what the team will dream up next year?
The BRIX Spring Customer appreciation bash at Canterbury Park in Shakopee.
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At The Art of Real Estate, guests were invited to work with a graphic designer and create their very own UltraCheese billboard. Mr. Sold, a time-traveling real estate agent from 1988, made an appearance. Curated artifacts were exhibited in the Real Estate Gallery and guest found what it’s really like to be an agent in virtual reality. Mercy Bar and Restaurant provided deliciously reimagined Open House Finger Food and signature cocktails like The Big Short. Then we danced the night away! THE BRIX REPORT
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MARKET REPORT
B R I X M A R K E T R E P O R T: W H AT D O T H E NUMBERS MEAN? When we analyze a market, we want to understand why home prices are going up or down, how fast a home will likely sell, and what home buyers are snapping up or skipping over. Consumers today are awash in data on the housing market, and that data is often inexplicable and even contradictory. We’re in the business of giving advice to our clients and we want that advice to be based on all the facts in our arsenal. The Market Snapshots in The BRIX Report compare the data from 2017 to 2016 and uses these key market indicators:
T O TA L S A L E S
This is a count of the actual sales that have closed in a given year. Calculations are based on sold data from the Northstar Multiple Listing Service and do not include off-market transactions. A decrease in Total Sales doesn’t necessarily mean that the market is declining, because if the Inventory is low there may simply not be enough houses to meet buyer demand. An increase in Total Sales from one year to the next may reflect a variety of conditions, such as the opening of a major new subdivision or condo building, or a dramatic change in interest rates. 40
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MEDIAN SALES PRICE
Median represents the point at which half of the homes that sold in a given year were priced higher and half were priced lower. Calculations are based on Sold data and the prices do not account for seller concessions (e.g. a closing cost credit). We don’t use Average Sales Price because even just a small number of very high or very low priced transactions can distort our understanding of the market. A year-to-year decrease or increase in Median Sales Price needs to be carefully analyzed. In a market with a relatively small number of sales, it may mean that a number of much lower or much higher priced homes were sold in this year compared to the previous year. D AY S O N M A R K E T
This is the median number of days from the listing date to the day that the listing broker reports in the MLS that the seller has accepted a contract for purchase. We show Median Days on Market, which represents the point at which half the homes went under contract in fewer days and half went under contract in more days. When the total number of Days on Market decreases from one year to the next, this indicates that it is a “seller’s market” because buyers are quickly going under contract on homes. Homes at the upper end of the price range in nearly all communities have longer Days on Market, simply because there are fewer buyers of more expensive homes. MONTHS INVENTORY
We show this as the active inventory of homes for sale versus the previous twelve months of homes reported as Under Contract. Think of it this way: if the Month’s Inventory is two, this means that the available number of houses would be sold out in two months. This is based on the rate of sales in the past year. A low Months Inventory shows that houses are selling quickly. There are fewer buyers for higher priced homes, so the higher end market usually has a greater Months Inventory. THE BRIX REPORT
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APPLE VALLEY Named one of the best places to live in the U.S. by Money Magazine on four separate occasions, over 50,000 people call Apple Valley home. Apple Valley boasts a great park system, recreational areas and the famous Minnesota Zoo. Properties sold in 2017 were just about evenly split between single family homes and townhomes/condos. Home buyers face tight inventory and many homes are on the market for less than a month.
D AY S O N M A R K E T
INVENTORY
21 Days
1.5 Months
-22.2%
-21.1%
SALES PRICE
SOLD HOMES
$245,000
1,096
+6.6%
-4.0%
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BLOOMINGTON With 85,000 residents, Bloomington is Minnesota’s fourthlargest city. Quite a distinction for a community that is just 10 miles south of Minneapolis. Bloomington is home to the Mall of America and serves as the corporate headquarters for many successful companies. Home buyers are drawn to Bloomington because of its affordable home prices and range of property types. Sellers enjoy market times of less than one month and multiple offers on their homes.
D AY S O N M A R K E T
INVENTORY
20 Days
1.5 Months
-25.9%
-11.8%
SALES PRICE
SOLD HOMES
$247,000
1,265
+6.9%
-1.9%
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BURNSVILLE Burnsville is a southern suburb offering easy access to both Saint Paul and Minneapolis. Its numerous shopping and entertainment attractions have helped attract nearly 60,000 residents. Sales were split evenly between single family homes and townhomes/condos. On average, homes stay on the market just over a month, so buyers need to move quickly when they see their perfect home.
D AY S O N M A R K E T
INVENTORY
25 Days
1.6 Months
-26.5%
-27.3%
SALES PRICE
SOLD HOMES
$244,000
1,051
+4.7%
+1.3%
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C R Y S TA L Located just between Robbinsdale and New Hope, Crystal boasts 22,000 residents and small-town charm. Home prices and sales increased slightly in 2017 despite constrained inventory. The average total days on market decreased, showing that buyers must act quickly when they find a home they like.
D AY S O N M A R K E T
INVENTORY
22 Days
1.3 Months
0.0%
-27.8%
SALES PRICE
SOLD HOMES
$200,000
498
+8.0%
+1.6%
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EDEN PRAIRIE This family-friendly city boasts recognition as the best place to live in the U.S. by Money Magazine. Add to that top-notch schools, plenty of outdoor beauty with gently rolling hills, 17 lakes that residents flock to year-round for swimming and ice skating, and 125 miles of running, hiking, and biking trails and you’ve got a dynamite place to live. Homes sell quickly here, with average times on the market hovering around a month, buyers who want to take advantage of all Eden Prairie has to offer must act fast.
D AY S O N M A R K E T
INVENTORY
30 Days
2.5 Months
-23.1%
-21.9%
SALES PRICE
SOLD HOMES
$329,000
1,212
+6.5%
2.9%
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EDINA An affluent first-ring suburb just southwest of Minneapolis, Edina boasts median family income and home prices well above the state average. The real estate market showed strong performance in 2017 despite the relatively low available inventory. About 70% of the homes sold in 2017 were single family, while the remaining 30% were townhomes and condos. In 2017, the median sales price of all homes increased and higher-end new construction pushed the price of single family homes to an average sale price of $540,000. D AY S O N M A R K E T
INVENTORY
39 Days
3.3 Months
-17.0%
-19.5%
SALES PRICE
SOLD HOMES
$454,729
1,023
+4.5%
+1.9%
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GOLDEN VALLEY The 20,000 residents of Golden Valley enjoy urban style combined with suburban tranquility. Major employers such as General Mills, Honeywell, and United Health contribute to a healthy economic base which in turn supports city investment into many parks and recreation areas. Despite a decrease in the number of homes for sale, both sales and prices increased in 2017. The vast majority of homes sold were single family with only about 17% being townhomes or condos.
D AY S O N M A R K E T
INVENTORY
19 Days
2.2 Months
-19.4%
-18.5%
SALES PRICE
SOLD HOMES
$309,950
432
+7.4%
-2.3%
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HOPKINS Surrounded by the communities of Minnetonka, Saint Louis Park, and Edina, the western suburb of Hopkins is located a mere three miles from downtown Minneapolis. With a population of approximately 20,000, Hopkins is about 98 percent developed with little remaining vacant land. It has been in a redevelopment mode for a number of years, and that will continue as city leaders look for ways to maintain, preserve and improve this historic community.
D AY S O N M A R K E T
INVENTORY
22 Days
1.5 Months
-18.5%
-25.0%
SALES PRICE
SOLD HOMES
$217,000
281
+0.3%
+8.9%
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LAKE MINNETONKA AREA Encompassing the towns of Minnetrista, Mound, Shorewood, Deephaven, Wayzata and Orono, the Lake Minnetonka area is best known for its great natural beauty and protection of woodland, lake and wildlife spaces. Many homes are located on large properties with beautiful views of parks, open spaces, and—of course—Lake Minnetonka. This area has one of the highest median home prices in the Twin Cities. Homes sell, on average, in about two months.
D AY S O N M A R K E T
INVENTORY
48 Days
4.7 Months
-31.4%
-16.1%
SALES PRICE
SOLD HOMES
$447,450
1,100
+11.6%
0.0%
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LAKEVILLE Lakeville, just 20 miles south of both downtown Minneapolis and downtown Saint Paul, is one of the fastest-growing cities in the Twin Cities area. Home to 50,000, approximately 70% of the homes sold in 2017 were single family homes, 20% of which were new construction. Homes in Lakeville stay on the market for just over a month so buyers must move quickly when they see the home they want.
D AY S O N M A R K E T
INVENTORY
31 Days
2.9 Months
0.0%
-9.4%
SALES PRICE
SOLD HOMES
$324,000
1,288
+6.4%
-4.3%
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MAHTOMEDI Mahtomedi is a quiet and peaceful enclave of homes located about 15 miles north of Saint Paul. The total number of homes available for sale in 2017 decreased in conjunction with the drop in inventory felt throughout the entire Twin Cities area. Home buyers who wish to live in a small community on a beautiful lake will continue to seek out homes in Mahtomedi.
D AY S O N M A R K E T
INVENTORY
34 Days
3.2 Months
-20.9%
-8.6%
SALES PRICE
SOLD HOMES
$326,000
121
+4.7%
80.0%
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MAPLE GROVE Maple Grove continues to be a rapidly growing community. Boasting 68,000 residents, it was named the second best place in the U.S. to live by Money Magazine in 2014. Maple Grove is home to more retail that nearly any other city in the state, second only to Bloomington. About 60% of the homes sold in 2017 were single family homes while the remaining 40% were townhomes or condos. Market time here is short, as homes sell in just about a month.
D AY S O N M A R K E T
INVENTORY
25 Days
2.1 Months
-24.2%
-8.7%
SALES PRICE
SOLD HOMES
$270,000
1,497
+5.9%
3.2%
THE BRIX REPORT
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M E N D O TA H E I G H T S Mendota Heights is sometimes called the best-kept secret in the Twin Cities because it provides the feel of the country with all the amenities of urban life. A first-ring suburb of the Twin Cities, Mendota Heights has preserved an abundance of parks and open spaces and encourages spacious residential development. Housing turnover is low in this community of 11,000 people.
D AY S O N M A R K E T
INVENTORY
32 Days
3.1 Months
-36.0%
-16.2%
SALES PRICE
SOLD HOMES
$385,000
177
+6.9%
-11.5%
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THE BRIX REPORT
Single Family
MINNEAPOLIS 2017 was again “the year of the seller” in the Minneapolis housing market. Due to a thriving local economy and favorable mortgage rates, the sales of existing single-family homes set new records for price, time on the market and inventory numbers. Buyer demand exceeded supply which caused buyers to scramble when a new listing came on the market as homes often went under contract in just a few days with multiple offers.
D AY S O N M A R K E T
INVENTORY
18 Days
1.6 Months
-28.0%
-15.8%
SALES PRICE
SOLD HOMES
$242,000
4,245
+5.7%
-1.4%
THE BRIX REPORT
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Townhomes & Condos
MINNEAPOLIS Driven by a strong economy and low unemployment, the Minneapolis real estate market has grown more rapidly since the recession than other cities its size. The townhome and condo market saw a banner year in 2017 with both an increase in the total number of sales and the median sales price. Time on the market dropped and sellers of wellpriced homes in top condition often went under contract in just days after receiving multiple offers.
D AY S O N M A R K E T
INVENTORY
30 Days
2 Months
-3.2%
-16.7%
SALES PRICE
SOLD HOMES
$241,000
1,431
+3.7%
-0.1%
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THE BRIX REPORT
MINNETONKA Located just 8 miles west of Minneapolis, Minnetonka is a fully developed suburban community of just over 51,000 residents. Minnetonka is a wonderful place to live with a range of housing opportunities and charming neighborhoods. The split between single family and townhomes/condos is about 60/40 with properties selling in about a month.
D AY S O N M A R K E T
INVENTORY
29 Days
2.5 Months
-23.7%
-21.9%
SALES PRICE
SOLD HOMES
$330,000
960
+8.3%
-5.3%
THE BRIX REPORT
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NEW HOPE Located just west of Robbinsdale, New Hope boasts a population of 20,000. Although already considered a fully developed community, the city is moving into a period of growth in population, housing, and businesses. Nearly every New Hope home is within a quarter-mile of a city park. New Hope maintains 20 city parks with a total of more than 200 acres of green space. Over the past couple of years, the city has also issued an average of approximately 2,000 building permits annually, representing an investment of about $25,000,000 each year in New Hope homes and businesses. D AY S O N M A R K E T
INVENTORY
23 Days
1.4 Months
-8.0%
-22.2%
SALES PRICE
SOLD HOMES
$224,900
330
+1.8%
7.5%
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THE BRIX REPORT
OAKDALE A suburb of Saint Paul, Oakdale is located on the eastern side of the Twin Cities. Many of the homes here were built during the area’s expansion in the 1908s and 1990s. Homes in Oakdale are affordable for the Twin Cities area and sell quickly, in under a month. About two-thirds of the properties sold were single family homes and one-third were townhomes or condos.
D AY S O N M A R K E T
INVENTORY
23 Days
1.5 Months
-17.9%
-21.1%
SALES PRICE
SOLD HOMES
$210,000
513
-0.7%
-7.1%
THE BRIX REPORT
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P LY M O U T H Plymouth is regularly recognized as one of the best places to live in the U.S. Its 75,000 residents enjoy beautiful trails, parks, lakes and open spaces. Nearly 20% of the singlefamily homes sold in 2017 were new construction. Homes in Plymouth stay on the market for just over a month so buyers must move fast when they see a home they love.
D AY S O N M A R K E T
INVENTORY
30 Days
2.4 Months
-16.7%
+17.1%
SALES PRICE
SOLD HOMES
$340,000
1,461
+4.6%
-3.9%
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THE BRIX REPORT
PRIOR LAKE Located 20 miles southwest of downtown Minneapolis and seated next to Savage and Shakopee, Prior Lake features many recreational amenities including more than 55 parks on 1,000 acres, over 100 miles of trails and sidewalks and 14 lakes. Taken together, the parks and lakes offer a wide variety of outdoor opportunities for residents with a wide variety of interests. The Shakopee Mdewakanton Sioux Community (SMSC) is located in Prior Lake and is the largest employer in the county. They offer their own array of opportunities to the public including restaurants, Fitness, an ice center, two casinos, and a hotel. D AY S O N M A R K E T
INVENTORY
29 Days
2.9 Months
-29.3%
-9.4%
SALES PRICE
SOLD HOMES
$289,900
610
-3.0%
-2.6%
THE BRIX REPORT
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RICHFIELD Even though Richfield is a first-ring suburb just 10 minutes from downtown Minneapolis, it retains a small-town flavor and strong community spirit. Friendly residential neighborhoods offer great choices for affordable housing with ramblers, charming bungalows, and traditional colonial two-story homes. Home buyers in Richfield must act fast. In 2017, homes sold in well under a month.
D AY S O N M A R K E T
INVENTORY
18 Days
1.1 Months
-14.3%
-15.4%
SALES PRICE
SOLD HOMES
$235,000
596
+6.6%
-5.5%
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THE BRIX REPORT
ROBBINSDALE Robbinsdale is a city of about 14,000 people located next to the northwest corner of Minneapolis. The city is over 100 years old and has maintained its small-town feel. Only about 10% of the housing is townhomes or condos. At a median home price of $185,000, the homes in Robbinsdale are among the most affordable in the Twin Cities area.
D AY S O N M A R K E T
INVENTORY
23 Days
1.5 Months
-30.3%
-16.7%
SALES PRICE
SOLD HOMES
$201,700
318
+9.0%
-3.0%
THE BRIX REPORT
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ROSEVILLE Roseville is a suburban community located just north of Saint Paul. With 33,000 residents and a short commute to either downtown area, Roseville’s established neighborhoods are a little over half single-family homes, with the remaining being townhomes, condos, or multifamily units. Roseville’s two school districts are consistently rated among the top in the state. Roseville continues to be a strong seller’s market.
D AY S O N M A R K E T
INVENTORY
25 Days
1.8 Months
-24.2%
-21.7%
SALES PRICE
SOLD HOMES
$240,500
518
+6.9%
+1.2%
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THE BRIX REPORT
SHOREVIEW Shoreview is a community of 26,000 residents who are committed to protecting the natural environment and the 11 lakes in their area. They boast 1,400 acres of natural open spaces and an award-winning park system along with small town charm. The addition of two public high schools rated in the top 10% in the U.S. by Newsweek doesn’t hurt either. The inventory shortage was felt here as well with more buyers looking to move to this area than homes available.
D AY S O N M A R K E T
INVENTORY
24 Days
1.5 Months
-17.2%
-25.0%
SALES PRICE
SOLD HOMES
$249,000
460
+11.7%
-1.9%
THE BRIX REPORT
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SHOREWOOD Situated on one of the largest lakes in Minnesota, Shorewood was incorporated from an area previously known as Excelsior Township. Encompassing parts of Lake Minnetonka and Christmas Lake shores, the city also boasts three islands. Shorewood remains primarily residential, and housing is varied, including homes built at the turn of the century, and homes still being constructed. All shapes, sizes and price ranges can be found in Shorewood, but one thing all homes have in common is the beautiful, natural surroundings— lakes, trees, and plenty of open space. D AY S O N M A R K E T
INVENTORY
61 Days
5.3 Months
-6.2%
-7.0%
SALES PRICE
SOLD HOMES
$536,500
123
+21.8%
-6.8%
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THE BRIX REPORT
S T. A N T H O N Y Saint Anthony, known as “The Village”, is a suburban city only 5 miles northeast of downtown Minneapolis. With its shops, restaurants, and artist community, The Village has retained a quaint flavor that separates it from the larger metropolitan areas. The Village of Saint Anthony experienced a true seller’s market in 2017.
D AY S O N M A R K E T
INVENTORY
21 Days
1.7 Months
-46.2%
-10.5%
SALES PRICE
SOLD HOMES
$269,500
140
+12.3%
+18.6%
THE BRIX REPORT
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Single Family
S T. PA U L Saint Paul had a record-breaking year in real estate sales. The story of real estate in Saint Paul continues to be one of inventory shortage which leads to a historically low average on-market time of just under a month. Despite the restricted inventory, both the total number of sales and the median price increased in 2017, proving that buyer demand is high. 2017 saw an increase in the number of tear-down purchases and higher-end new construction homes built on those lots.
D AY S O N M A R K E T
INVENTORY
24 Days
1.7 Months
-17.2%
-29.2%
SALES PRICE
SOLD HOMES
$192,000
3,283
+6.1%
-0.5%
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THE BRIX REPORT
Townhomes & Condos
S T. PA U L The condo and townhome real estate market was quite stable in 2017 despite high buyer demand. Home buyers looking for the advantages of maintenance-free living in Saint Paul need to move quickly when a property comes on the market. Home sellers can expect their properties to be sold in about a month and a half, but properties in great condition and competitively priced will sell in just a few days with multiple offers.
D AY S O N M A R K E T
INVENTORY
40 Days
2.4 Months
-11.1%
-22.6%
SALES PRICE
SOLD HOMES
$182,500
587
+2.4%
7.5%
THE BRIX REPORT
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S T. L O U I S PA R K Saint Louis Park is close to everything: lakes, work, downtown, etc. It has the benefits of big city living without the hassles. Home prices and home sales increased slightly in 2017 despite constrained inventory. The average total days on market decreased, showing that buyers must act quickly when they find a home they like.
D AY S O N M A R K E T
INVENTORY
18 Days
1.5 Months
-28.0%
-21.1%
SALES PRICE
SOLD HOMES
$260,000
959
+6.1%
-4.5%
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THE BRIX REPORT
S T I L LW AT E R Incorporated in 1854, Stillwater is a well-established, dynamic, growing community with a population of about 18,000 residents. Located about 20 miles east of downtown Saint Paul, Stillwater offers the advantages of living near the Twin Cities with the addition of a wide variety of recreation opportunities. Housing prices continued to increase in 2017 as the total supply of homes decreased.
D AY S O N M A R K E T
INVENTORY
40 Days
3.4 Months
18.4%
3.0%
SALES PRICE
SOLD HOMES
$305,000
409
+6.8%
0.5%
THE BRIX REPORT
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VADNAIS HEIGHTS Vadnais Heights sits between the Twin Cities’ east metro and western Wisconsin at the intersection of 3 highways. Vadnais Heights offers a wide range of housing: starter homes, executive housing, condos and townhomes for maintenance-free living, and an active senior community. Vadnais Heights offers great choices for outdoor activities with well-maintained parks and a growing network of trails that offer recreational enjoyment.
D AY S O N M A R K E T
INVENTORY
28 Days
1.9 Months
-20.0%
-13.6%
SALES PRICE
SOLD HOMES
$240,000
226
+7.1%
4.6%
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THE BRIX REPORT
W AY Z ATA Affluent Wayzata is located just west of the Twin Cities and borders on Lake Minnetonka. A significant number of total sales in 2017—nearly 37%—were new construction and most of those were high-end and ranged in value from $1 to $4 million, pushing the median price up significantly. Downtown Wayzata is known for it’s boutique shops and fantastic dining options that offer everything from casual to elegant with many providing lake views.
D AY S O N M A R K E T
INVENTORY
63 Days
6.7 Months
-34.4%
13.6%
SALES PRICE
SOLD HOMES
$894,950
97
+65.7%
-5.8%
THE BRIX REPORT
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WHITE BEAR LAKE With a population of 25,000, White Bear Lake has a distinct small-town character and offers some of the most affordable housing in the Twin Cities area with an average sales price of $221,000 from single family homes. About 80% of the homes sold in 2016 were single family homes, while the remaining 20% were townhomes or condos. Homes sold quickly in an average of just under a month.
D AY S O N M A R K E T
INVENTORY
22 Days
1.4 Months
-12.0%
-22.2%
SALES PRICE
SOLD HOMES
$229,000
388
+6.5%
-3.7%
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THE BRIX REPORT
WOODBURY Woodbury continues to be one of the fastest growing communities in the Twin Cities. Recognized as one of the Best Places to Raise your Kids by Business Week, Woodbury showed continued strength in 2017 with both an increase in homes sales and median sale price. Woodbury is popular with new home buyers as more than 10% of all sales were in new construction areas.
D AY S O N M A R K E T
INVENTORY
27 Days
2.2 Months
-9.7%
-15.4%
SALES PRICE
SOLD HOMES
$311,088
1,542
+5.8%
-0.5%
THE BRIX REPORT
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THE 2018 B R I X R E A L E S TAT E PREDICTION
2017 finished out with the market being up about 7% Year Over Year (YOY) in the Twin Cities Region with the appreciation trendline staying pretty consistent with recent years. The median sales price finished at $246,000, about 7% over the previous high of 2006. Our historically low inventory levels—which hit their original low of 3.5 months in March of 2014—has continued down to a mere 2.2 months now (and much less in certain pockets). With interest rates still low—on borrowed time, for sure— and the cost of owning still being a fair amount less than renting the 2018 market should continue as it has the past few years. The spring market will be especially competitive for buyers in the sub ~$350,00 market. Are we in a bubble? We doubt it. Buyers are more conservative about the decision making than they were during the lead up to the market crash. They aren’t generally maxing out their DTI ratio’s and aren’t considering appreciation as a main factor in the decision. Meaning, buyers can afford what they are purchasing and they are, generally, buying homes they plan to live in for more than just a couple years. We believe the gamblers that participated in the previous crash are not as prevalent in this market. The market for bitcoin and other crypto currency have certainly pulled volatility out of the stock market and we believe some out of the housing market as well. This means less speculators and more true investors and home owners. Will the market continue forever like this? Absolutely not, but we don’t expect it to change direction in 2018.
BRIX St. Paul 1390 7th Street West St. Paul, MN 55102 612-927-2749
BRIX Minneapolis 748 N 3rd Street Minneapolis, MN 55401 612-927-2749 BRIX Maple Grove 6885 Sycamore Ln N Maple Grove, MN 55369 Coming Spring 2018!
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BRIX Burnsville 201 W Burnsville Parkway Burnsville, MN 55337 612-927-2749