October’s uptick in the median price of a Twin Cities traditional-sale home (not a short sale or foreclosure) didn’t last long. The numbers are now in for November, and they show that traditional-sale prices have resumed a downward trend that began in July.
According to an analysis released today by the Shenehon Center for Real Estate at the University of St. Thomas’ Opus College of Business, the median price of a traditional-sale home in the 13-county Twin Cities market decreased from $189,600 in October to $185,500 in November.
The St. Thomas Residential Real Estate Price Report Index, now in its sixth month, tracks the median prices for traditional home sales, short sales (homes sold for a price less than the outstanding mortgage balance), and sales where the home’s mortgage has been foreclosed.
In all three categories, the median prices have fallen below the lowest levels recorded in 2009.
Altogether, the Residential Real Estate Price Report Index tracks a total of nine data elements to measure the health of the Twin Cities market. For comparison purposes and to gauge how the market is doing, the university assigned a baseline index value of 1,000 to January 2005, a month that was near the apex of the residential housing bubble. Each month’s index can be compared to the previous month, year or market peak to understand the relative strength and direction of the Twin Cities housing market.
Here’s how things looked in November for the three categories of sales: (more…)