State of Metro's Home Sales Not so Bad, Say Local Experts
Monday, October 24, 2011
Figures released by the Shenehon Center for Real Estate at the University of St. Thomas in St. Paul show a 9.5% drop since 2005, instead of the 28.4% figure calculated by the national Standard and Poor's Case-Shiller Home Price Index.
St. Thomas' experts say their Residential Real Estate Price Report Index was developed to provide "a more detailed analysis" of the local market, by distinguishing between a traditional, normal market sale and a short sale or foreclosure sale.
Real Estate Program Director Herb Tousley says in a press release, "Combining foreclosure and short sales of real estate with traditional property sales skews any single composite price index, such as Case-Shiller's and creates a downward bias."
Tousley says foreclosure and short sales have make up between 35 and 60 percent of all housing sales during the last few years, which causes the reported decline to be "overstated."
According to the St. Thomas Index, the median price of a Twin Cities traditional-sale home went down 4.6% from $195,000 in August to $186,000 in September.
Originally published: 10/24/2011, KSTP-TV