2013 was a good year for home prices in the Minneapolis/St Paul market. The Minneapolis Case Shiller Index posted a 8.62% increase from January 2013 to October 2013. (The totals for the entire year won’t be available until February 2014).
October posted a 2.09% increase from September to October.
We are heading the right direction!
Since it is New Years Eve 2013. I guess I need to make my prediction for 2014. I expect the housing market in the Twin Cities to stabilize a bit. Interests rates will nudge up slightly slowing some of the sales, Builders will continue to add more supply to housing market holding inventory at manageable levels which will hold pricing in line.
I don’t believe we have entered into another housing bubble, and don’t believe we will. If you drew a trend-line from 1990 to about 2000, we are roughly where that trend line would be.
2013-01-01 126.88 2013-02-01 128.53 2013-03-01 129.55 2013-04-01 133.35 2013-05-01 132.91 2013-06-01 131.66 2013-07-01 130.76 2013-08-01 132.24 2013-09-01 133.41 2013-10-01 135.50