Minnesota Foreclosures

The frigid state of Minnesota is an anomaly in this market. Unemployment is way up with December 2008 peaking at nearly seven percent and yet the foreclosure rate stayed fairly low comparatively speaking at 0.105 percent or just over 2,400 properties during the same month.

This is partially due to the fact that a lot of the property in the state is what is considered vacation property. That is to say that a lot of homes, at least in the middle of the state and up, are owned by people as a second home where they can go and play in the summer on vacation or use it as a hunting cabin or a snow mobile base camp in the fall and winter.

The foreclosures that are happening in the state of Minnesota are largely due to issues with lay offs in and around the twin Cities of Minneapolis and Saint Paul where retail and manufacturing has taken a hit with the economic decline the last few years.

That means that a good portion of the property that is available in Minnesota is of the newer construction and a lot of them are located in nicer and newer developments so most of what’s available should be fairly prime property by real estate standards and most of what is there is in desirable locations.

The overall rate of foreclosure has held fairly steady and by all accounts will remain fairly steady due to the fact that a lot of the property is owned, as stated above, as vacation property and is owned free and clear with no mortgage being held.

Clearly if the crisis goes on for a long period of time, that will change the dynamics of the foreclosure market here but as for now, things are expected to continue here as status quo.