Doors open for buyers in rehabbed Minneapolis homes

Article by: STEVE BRANDT , Star Tribune
Updated: May 13, 2011 - 4:18 PM

City offers financing incentives in hopes of stimulating demand.

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Contending that its most foreclosure-ravaged neighborhoods are recovering, Minneapolis plans to show off some of its recently rehabbed inner-city homes on Saturday with a carrot of incentives for buyers.

The tour the city is cosponsoring with LiveMSP promises to feature 24 North Side houses and 17 on the South Side. The tour is scheduled for 11 a.m. to 3 p.m. Maps can be found at the LiveMSP website or at 4048 5th Av. S. or 3835 Fremont Av. N.

Some of the homes are among the 591 that the city has targeted under the federal Neighborhood Stabilization Program, which is attempting to rebuild housing markets with high foreclosure rates.

Forty-five percent of the homes are headed for rehab, 23 percent are being held for future redevelopment, 19 percent are to be demolished and the rest are being offered with financial incentives for buyers.

City housing officials expressed optimism earlier this month when Minneapolis Area Association of Realtors data showed strong year-over-year price gains in the North and Phillips listing districts. The median sales price rose 19.6 percent in North and 21.6 percent in Phillips compared with a year earlier.

But an added month of data released this week showed that markets still are volatile, with Phillips showing no year-over-year gain and North up only 1.5 percent.

Median prices generally bottomed partway through 2011 in those areas, but they remain about half of their 2006 peak in Phillips and one-third of their 2006 peak in North.

The city said it is offering a $1,500 incentive to those who buy homes on the tour, to be used for closing costs or down payments. The city also offers low-interest financing and additional financing incentives for those who buy in qualifying neighborhoods.

Steve Brandt • 612-673-4438