Minneapolis home prices post steepest decline in U.S.
Tuesday, March 29, 2011
“The housing market recession is not yet over, and none of the statistics are indicating any form of sustained recovery. At most, we have seen all statistics bounce along their troughs; at worst, the feared double-dip recession may be materializing,” David Blitzer, chairman of the Index Committee at Standard & Poor’s, said in a statement.
But local real estate followers and insiders are not ready to declare that a double-dip is at hand.
“I don’t think we are quite there yet, and I don’t think we will know for another two or three months,” said Herb Tousley, director of the Shenehon Center for Real Estate at the University of St. Thomas. “We are going through this trough in the winter where the index goes down every year.”
Tousley and Brad Fisher, president of the Minneapolis Area Association of Realtors (MAAR), said one factor affecting home prices is the high percentage of distressed home sales. In January, 55 percent of all Twin Cities’ area home purchases were foreclosures or short sales, they said.
MAAR reported the Twin Cities median home price fell 5.1 percent in January and declined 10.4 percent in February in year-over-year comparisons.
Originally published: 03/29/2011, Finance & Commerce