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.
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