Home Prices Still Dropping In Twin Cities

MINNEAPOLIS (WCCO) — Home prices in the Twin Cities continue to fall. On average home prices in August were down 11 percent from the previous year, according to the Minneapolis Area Association of Realtors.

The same report shows homes are on the market for an average of 136 days, nine days longer than August of 2010.

One home on Brandywine Drive in Burnsville has been on the market since May. It was purchased seven years ago for $449,000. The owners then added $100,000 in updates.

The house is now listed at $389,900. Experts say it’s a sign of the times.

“People just aren’t as apt to make a big commitment if they’re concerned about their job and the economy,” said Herb Tousley, the director of Real Estate Programs at the University of St. Thomas. “It tends to make people hold back.”

For sellers to overcome the market, Realtor Kary Marpe has some advice.

“Start with the outside of the home,” said Marpe. “Fix your known flaws. If you have something you’ve been putting off fixing, like a broken window, fit it.”

A fresh coat of neutral paint will also help.

“I don’t know of a buyer that likes to strip wallpaper,” said Marpe. “I think there’s the expectation that the work will be done, that there’s no projects in the house for them to do because a lot of the buyers are buying at the top of their comfort level.”

Marpe says sellers should forget about what they paid for the home.

“As a seller, you want to price where the buyers are buying, not where the other sellers are listing,” said Marpe.

There is some good news for sellers.

“I think we’re at or close to the bottom,” said Tousley. “I would hope by this time next summer we would’ve seen some growth through the spring, less foreclosures and things will look better.”

If you’re considering selling now or thinking about waiting until the spring, Marpe says now could be a better time because there are fewer homes on the market and there wouldn’t be as much competition. The number of homes on the market in the Twin Cities is down 20 percent from last year.

  • Ricky

    Okay, which is it? This article says home prices are down 11% from last year. The CCO article at: http://minnesota.cbslocal.com/2011/09/22/fewer-people-moving-to-minnesota/#comment-245847 says they are down 6%.

    You people need to stop being so irresponsible in your reporting.

  • Thanks for this

    Thank you liberals and thank you people who bought above your station.

    • Jim

      The housing crisis started when George Bush was president. Take off your partisan goggles and face facts for a change.

      • Thanks for this

        @Jim, that is just silly. We don’t live in a dictatorship. That talking point isn’t just stale, it makes no sense. The fact is if you and Mike up above are this reactionary, I bet you are just as affected as so many are. I’m actually glad for this situation. I am unaffected in every way because I owe very little on my large home, don’t intend to sell and have a lot of money. (yes all due to conservative values which continue to endure) Now we can more easily tell who lived on credit and who is actually a success in life. Yes I realize it is crass and not empathetic to your likley plight but again thans for this liberals, progressives and those who tried to live above their station. Now go and find a nice rental apartment.

    • Mike

      If you don’t like it here, got to FOX News for your entertainment………

  • Brian

    Critical flaw #1 in your reporting, setting us up to see that “Realtor Kary Marpe” is an expert. When I was in college during the housing boom years, they were passing out Realtor licenses to anyone and everyone. Saying Realtor Kary Marpe said to price my house low so that it sells is like telling me Burger King drive thru cashier Kary Marpe told me to price it low. Kary’s best interest is to sell houses, not limit the losses of her clients. Kary gets paid when the house sells. If any realtor has a seller holding firm on the price then it’s days, weeks or months they are going without their payment. What incentive are they given to really market the house? The Realtor profession is next in line behind the IT Engineer to becoming a marginalized profession. Now your average buyer can search countless free sites to find home listings regardless of whether they are FSBO or a company. For that matter, buyers and sellers can conduct transactions and offers without a realtor at all by paying a minor attorney fee on the paperwork. You can save thousands by cutting out the realtor. Now it might not have been worth the effort before to cut out the realtor, but when you’re taking a $100,000+ loss on your home, it starts looking a lot easier. They were the same realtors that were all too happy to sell you that house the first time around and set you up with their “closing connections” that helped thousands get mortgages they in no way could afford. So to hear that “Kary” or any Realtor now says to price low to sell quickly, feels just as sell serving for them as it did to buy high five years ago when people working part time jobs were getting approved for mortgages.

    • MARK

      Hey Brian, the rectangular key on the right side of your keyboard that says “Enter” is really helpful for avoiding enormous blocks of text like this that no one is going to read. Check it out.

      • Brian

        Will do


        thanks for

        the idea. It really

        helps! :)

        • MARK

          Glad I could help. :)

  • @ Brian

    yo lil’ Brian ____ ya upside down on yer house too, huh !
    well – we all are. The market went up crazily when all of us fools kept thinking we are missing the boat ….. buy, buy and jump in.
    We got ourselves to slap on the side of the head and no one else. Sorry – we fricked up it seems. I may walk on mine (forced) soon and yep….I am upside down $194,000 based on the only offer I have seen. Life sucks sometimes but I am alive

  • Crunch

    I am mad as he!! about it all and the same for the stock market.
    That said I wasn’t forced to sign on the stinking dotted line either.
    A lot of bubbles and beliefs have been busted in the last 6-8 years. Heck – lets run back 12 years to the .com bust
    Seems we all felt sugary and fluffy and things would always be rosy. maybe if we had paid heed to the rest of the world and got off our pedistals by ourselves instead of tossed off the fall may have been less. (?)
    Life goes on … and I am broke. And 64 with few years to recover. Not a pretty picture but I made my bed

  • The way it is

    Personally I’m glad about what happened and is happening to our economy. Used to be that only people that TRULY worked hard could afford a house. Then a bunch of children and idiots, who do nothing for our nation or humanity, figured out a way to buy into homes, when the economy was erroneously good. Now that the real economy is back where it should be, all the children and idiots have found themselves with zero money, no more Hummers, and lost homes. Yet here I am, still working hard and still owning my home, and really doing just as fine as 8 years ago. I’m happy to know that things are just the way they’re supposed to be, today, and all the chumps out there are eating soup tonight…

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