Thoughts of home prices rebound were premature

Home prices in the Minneapolis market have climbed — albeit slightly — for the sixth month in a row. the first time that’s happened since May 2006.

The Case Schiller survey of home prices, which tracks the resale price of individual homes, shows Minneapolis area home prices climbed .2% in October, when seasonally adjusted.

But that increase is only half of the national average, and puts the area ninth nationwide.

City Change from September
San Francisco
1.7%
Detroit
1.2%
San Diego
1.1%
Phoenix
1.0%
Los Angeles
0.7%
Seattle
0.4%
Denver
0.3%
Washington DC
0.2%
Minneapolis
0.2%
Charlotte
0.1%
Dallas
0.0%
Atlanta
-0.2%
Boston
-0.2%
New York
-0.2%
Las Vegas
-0.3%
Portland
-0.3%
Cleveland
-0.4%
Miami
-0.5%
Chicago
-1.0%
Tampa
-1.2%
National
0.4%

For the year to date, home prices here are up .7% (seasonally adjusted). But compared to a year ago, the prices are still down 8.7%.

Without the seasonal adjustment, home prices in Minnesota dropped .5% from September, are up 3.5% this year, and are down 8.4% from October 2008.

So what does this all mean? It means your Minneapolis area home is worth about what it was worth in 2001, which is better than the nationwide average where the prices are stuck in 1997.

“The most accurate one-word description would be ‘flat,'”, David Blitzer, chairman of the Standard and Poors Home Prices Committee, said. “We’ve lost a little bit of momentum. We saw a strong surge and spring and summer, and we thought it would take off.”

  • Tyler

    What’s happening with the first-time homebuyer’s credit?

    My guess this ‘rise’ is a bubble from the tax write-off. I was part of it!