Affordable housing

Star Tribune Sun, 18 May 2008 14:02:36 GMT
The $100,000 house makes big comeback

Qualified home buyers are breathing life into entry-level and low-end housing markets. Three years ago the choices for entry-level buyers like Sarah Kiefer were so meager that with a budget of just $120,000 she all but gave up on buying a house. The down market revived that dream. This week, Kiefer will close on a Colonial-style fixer-upper in north Minneapolis with 1,800 square feet and a fireplace for $75,000. "My No. 1 goal in life was to own a home," she said. "And in this market I could afford to buy a house." She had plenty of choices. This month more than 2,600 houses were on the market at less than $120,000 -- a 608 percent increase over the same period in 2005, according to the Minneapolis Area Association of Realtors. The inventory for all price ranges increased 62 percent over 2005.

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