Gloom returns to TC housing market

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.

  • http://twitter.com/kwatt kwatt

    Returned? When did it leave?????

  • Bob Collins

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

  • Kassie

    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.

  • bsimon

    “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.