CoreLogic released their July Report for their Home Price Index. The Lead on their report is July Home Price Index Shows Fourth Consecutive Month-Over-Month Increase. Except for Minnesota…
Excluding distressed sales, the five states with the greatest depreciation were: Nevada (-9.6 percent), Arizona (-8.1 percent), Delaware (-6.5 percent), Minnesota (-5.7 percent), and Michigan (-4.7 percent).
Including distressed sales, the five states with the greatest depreciation were: Nevada (-12.2 percent), Arizona (-11.9 percent), Illinois (-10.0 percent) Minnesota (-8.6 percent), and Idaho (-7.8 percent).
I believe our region has something else going on other than the mortgage collapse and housing bubble. If you look at this data, and other data comparing us nationally we are not doing well at all. Our unemployment rate is better than nationally, however we are still losing jobs. We are also losing households in the 7 county metro region, which has a big impact.
The funny things about these reports is the true meaning of the data gets lost in translation. For example, regionally our median and average home prices are way down. That doesn’t mean that all home prices are down by that percentage, it is more reflective the price ranges that are selling bringing the average and median price down. That is part of this, but I would assume that would be the same in other markets but maybe not.
Now it may also be that we are the market that is actually correcting quicker so it looks bad right now, but in the long-term is a healthier market. This is a theory I don’t know how to prove other than with 20/20 hindsight. In other words, time will tell.
(Or for another perspective on this, check out A Cold Detroit post.)
Look how we make the top 5 list… (view CoreLogic’s full report).
- S&P Case Shiller Home Price Index 2nd Qtr 2011, Minneapolis vs Composite 20 (craigkamman.wordpress.com)
- Minnesota Unemployment Rate up to 7.2% August 19,2011 (craigkamman.wordpress.com)
- Case Shiller Home Value Index MN vs. MN Property Tax revenue (craigkamman.wordpress.com)