The Condo Bubble Pops
The condo craze of the recent past is now a developer's nostalgic memory in Minneapolis. As more single-family homes crowd the market, condominiums are starting to see a comparable slowdown. The question for real estate watchers: Which projects will fall by the wayside under pressure from softening sales?
"It's too soon to say how many projects will fall by the wayside and when. So far, none of the developers who have started marketing their projects have pulled the plug. In fact, several large national developers are pursuing development plans in Minneapolis as a vote of confidence that the condo market has long-term viability. That includes a luxury high-rise planned atop a Whole Foods store near the downtown Minneapolis riverfront."
"Rick Collins, vice president of development for Ryan Companies in Minneapolis, said that after some preliminary planning his company recently decided not to build a 600-unit luxury condo project at the Superior Plating site on the East Bank of the Mississippi River. He cited softening sales and a glut of high-priced units."