Also, if houses are just now reaching the values they saw in 2007, well, it is 9 years later. Getting back to the trend from that long ago doesn't sound so scary.
Especially since, I'd argue, most neighborhoods in Minneapolis are more desirable, attractive, and walkable than they were 9 years ago. Kingfield, where I live, has added a significant number of restaurants, etc., and people seem to appreciate these neighborhood amenities more than ever.
Related, you have an ever-larger number of metro residents who are competing for a slowly decreasing number stock of SFH's in Minneapolis.
So, the above suggests that increases in Minneapolis housing prices are probably appropriate and sustainable -- however, if you're looking for an affordable starter home in a popular Minneapolis neighborhood, good luck with that.
I've been thinking about this too. Matching the prices from the middle of the last decade causes less alarm when you factor in inflation, tighter lending standards, increased population, and increased desirability of walkable neighborhoods.
On the other hand, wages haven't really increased since that last boom, prices are artificially propped up by historic low interest rates, and Trump nearly has the Republican nomination for President.
Anyway, given the crossroads I'm at, I've been kicking around all this stuff in my head and I really appreciate the informed and thoughtful analysis of this forum.
Mr. Money Mustache also talks...
Damn your earlier MMM link, Matt. I spent hours yesterday reading his blog, and now I'm reevaluating everything. I might just try to save 75% of my income, eat rice and beans, sell most my stuff, and retire in 10 years.
Or at least it was a good time to be exposed to his bullshit as I've just finished paying off all my student loans and other debt by drastically reducing my expenses and now I'm shifting to savings (and/or taking on the largest debt of my life via a mortgage).