A sliver of good news on local home prices
Tuesday, August 30, 2011
Local real estate watchers agree the crummy Case-Shiller readings for the Twin Cities are related to the area's heavy load of bank-mediated sales, which have been weighing down the metro area's median sale prices. Distressed, or bank-mediated home sales such as short sales, accounted for about 38 percent of closed sales in the Twin Cities in June, said Herb Tousley, director real estate programs at the University of St. Thomas. A year ago they were 31 percent of sales.
Tousley called the change a "contributing factor" in the Twin Cities Case-Shiller drop, but not the whole explanation.
Tousley said he is concerned because he's seeing weakness in the local median sale price for "normal" or non-distressed home sales, too.
"We're going to be watching August very carefully," Tousley said.
Originally published: 08/30/2011, Star Tribune