Mpls. Leads 20-City Index with 3.2% Gain
According to Case-Shiller's August statistics, Minneapolis showed the best appreciation of 20 markets nationally, with a 3.2% increase (the raw number increased from 118.87 in July to 122.66 in August).
So what does that mean?
I don't put too much stock in it, for two reasons: 1) a one month snapshot is too short to be meaningful; and 2) I have issues with Case-Shiller's "sale pair" methodology.
Practicing, "boots-on-the-ground" Realtors form their opinion of the market not just from what's sold, but what's currently for sale -- and what's not selling.
My take, which has been consistent for several months now, is that we're experiencing a schizophrenic market: the low end, stimulated by bank foreclosures and the $8,000 tax credit, is quite strong (if not approaching overheated).
At the other end, upper bracket housing is suffering because prospective buyers of those homes are facing a one-two whammy of higher financing costs and stricken balance sheets.
Tuesday, October 27, 2009
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