1 Of Every 2 Homes Sold In TC = Foreclosure, Short Sale
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MINNEAPOLIS (WCCO) — A new report paints a bleak picture of the Twin Cities’ housing market. According to the Shenehon Center for Real Estate, the median price of a traditional-sale home in the metro dropped 10.25 percent during 2011.
The University of St. Thomas’ Opus College of Business released the report Thursday. According to the report, the median price of a traditional-sale home in the 13-county Twin Cities market went from $212,250 to $190,500 last year. That’s a loss of $21,750.
A chart accompanying the report shows in January of 2005, the median price of a traditional-sale home was $232,500. That price dropped $42,000 in the span of seven years, by December of 2011.
“This data is in stark contrast to the 31.35 percent decrease recorded by the Case-Shiller Index between January 2005 and October 2011, which is the most recent Case-Shiller data available,” said Herb Tousley, director of real estate programs at St. Thomas in a press release.
Officials say the discrepancy is due to the St. Thomas index distinguishing between a traditional, normal market sale and a distressed sale — something the Case-Shiller Index does not.
The percentage of distressed sales continues to increase, from 48.8 percent in November to 50.18 percent in December.
The report states a healthy housing market will not be possible until the percentage of distressed sales consistently remains below 35 percent and traditional home prices stabilize.