Minnesota Economic Outlook: Better, Not Great
Wells Fargo economists say there are signs of hope for the Minnesota housing market.
In a briefing today about the Minnesota economy, economist Scott Anderson said Minnesota's housing market seems to be on the mend.
He expects price declines will moderate to about three to four percent this year.
Anderson said the demand for homes is rising while the number of homes on the market is falling. He expects record low mortgage rates will drive up sales.
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"Minnesota's housing fundamentals are improving," he said. "We're seeing visible increases in demand, record low mortgage rates certainly helping in that regard. And we do expect to see more signs of home price stability by the end of the year. We're starting to see the light at the end of the tunnel."
Meanwhile, Anderson forecasts about a one percent growth in employment in the state this year. That would translate to about 26,000 additional jobs.
But he says job growth could be weaker if economic woes in Europe lower overseas demand for Minnesota-made goods.
Anderson expects Minnesota's unemployment rate this year will be just under six percent, about where it is now.