POTW | Nokomis NBHD
By David Arbit on Monday, April 20th, 2015
Nokomis is an increasingly popular South Minneapolis community close to the airport, Mall of America, nearby highways, light rail and many other amenities. While the Calhoun-Isle and Southwest Communities of Minneapolis have already exceeded their previous price peak, the Nokomis Community isn’t far behind. Just a 2.2 percent price gain will mean that Nokomis has matched its previous price peak.
The Nokomis area has historically outperformed Minneapolis as a whole in the median sales price game.
But on a price per square footage basis, Minneapolis has been outperforming for most of the past 10 years with the exception of 2009-2011.
The divergence becomes even more dramatic when you filter down to only traditional properties. Since we haven’t specified a property type filter, the Minneapolis condo bubble is especially visible around mid-2006. In other words, because condos are included in the figure for both areas, the extreme price movement of Minneapolis condos (downtown and elsewhere) is pushing that Minneapolis trendline higher.
As the above chart highlights, new construction prices in Nokomis are more than double the median sales price of previously owned properties. In fact, new construction prices are at least at a 10-year high. Despite that, and despite the fact that absorption rates—at 2.6 months—favor sellers in Nokomis, it skews slightly toward the more affordable end of the spectrum in terms of the close-to-lakes-and-rivers portion of South Minneapolis.
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