The real estate slump has been tough all over the country. Prices have dropped, foreclosures have mounted, and there’s been plenty of pain to go around.
Nationally, it’s been especially tough in overheated markets like Miami, Las Vegas and Phoenix. Could it really be, then, that the Twin Cities real estate market is down the most of any in the country in the U.S.?
That’s what data from Standard and Poor’s Case-Schiller index indicates. The index sows prices in the Minneapolis area to be down 9.1 percent from a year ago – more than anywhere else in the country.
The good news is that, over this past summer, Twin Cities home prices did increase. The increase of 9.0 from March to July was the second highest in the nation, according to the Case-Schiller index. Even when adjusted for season fluctuation, the increase in prices was over 2 percent. This was the second highest in the U.S.
The overall price drop in the past year, however, remains a source of concern. Foreclosures continue to hold down prices in the Twin Cities. The data show that the percentage of home sales that involve foreclosed homes is higher than the national average.
This percentage is from 30 to 40 percent of all sales. In other words, over 1 in 3 houses that is sold was foreclosed upon. This does not only affect the price for those houses, but for others as well.
If you have legal questions about housing, talk to a Twin Cities real estate lawyer at our firm to discuss your specific situation.
Source: “Twin Cities house prices: a summer warm-up?” Star Tribune, 9-27-11