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Gloom returns to TC housing market

Posted at 11:40 AM on February 22, 2011 by Bob Collins (4 Comments)
Filed under: Economy

The Minneapolis area's home prices fell for a six consecutive month in December, according to Standard & Poor's Case Schiller Index, which measures the resale value of homes. Minneapolis' seasonally-adjusted resale value dropped just .4%, well off the national drop of over 2 percent, but a drop nonetheless.

It's a double dip, by almost any definition. In the previous "bottom," prices dropped every month for more than a year.

"Prices may go down substantially," Robert Shiller, Yale University professor of economics, said on CNBC this morning.

And NPR's Planet Money provides four reasons why they will: There are a lot of houses for sale, there are a lot of foreclosures, interest rates are going up, and the government is getting out of the bailout business.

Have you been trying to sell your home? Tell us your story.

Comments (4)

Returned? When did it leave?????

Posted by kwatt | February 22, 2011 12:06 PM

... when the experts said we reached bottom and prices started going back up (Early in '10)

Posted by Bob Collins | February 22, 2011 12:46 PM

It is so crazy. I'm basically holding on hope of being able to somehow refinance (I legally have to in the next 3 years), but also trying to figure out when I just give up and foreclose. If I just go into foreclosure now, "they" say my credit will rebound quickly and all will be okay again in a few short years. But what if they are wrong? Or, what if I wait and I can't ever refinance so I have to walk away at the end of the three years? Maybe foreclosure then will really screw with my credit for 7 years.

I'm just holding on to a hope that there will be some sort of homeowner rescue plan that actually works for people. I know it won't happen, but I can dream.

Posted by Kassie | February 22, 2011 1:17 PM

"And NPR's Planet Money provides four reasons why [prices may go down substantially]: There are a lot of houses for sale, there are a lot of foreclosures, interest rates are going up, and the government is getting out of the bailout business."

A recovery in housing will not happen until the unemployment rate starts going down & wage growth returns. Until that happens, the people who can both afford to buy a house and qualify for a mortgage will enjoy a buyers market.

Posted by bsimon | February 22, 2011 3:46 PM