Matt Loskota, an agent with Edina Realty who works in the downtown condo market, brings some perspective to the downtown scene:
Marketers call it the product lifecycle. Every neighborhood goes through it, and Downtown Minneapolis is still on the upward curve. Once we mature a bit, the numbers will have a bit more meaning.
Until then, activity is still good. Showings for listings in our office are ahead of last year for roughly the same number of listings. New construction continues to sell, and not everyone is singing a sad song.
He may be onto something here. There is little new ground being broken at this point, so inventory comes from an ever-decreasing number of new units together with resales. Once you can’t buy something brand new for the cost of a used unit, pricing will enter a new phase. At least, until the market changes and new developments start taking shape.