One of the closely watched metrics tracking home prices is the Case-Shiller Home Price Index from Standard & Poors. Detailed description of methodology here, but essentially the index tracks sales prices by using a 10 and 20 city composite. The just published index from July shows the biggest year-over year drop in 16 years.
Understanding that national stats may not have much bearing on our local market, the following table, via WSJ, shows that the Twin Cities has seen a 3.4% drop in price, year over year.
This data, though only a snapshot, should not surprise anybody who’s been paying attention. Nor does it mean we are in for some sort of real estate price depreciation disaster in the Twin Cities – this is just regression toward the mean (5-6% annual appreciation over the last 30 years or so) after years of above average appreciation.
Case-Shiller Price Index Tumbles [WSJ]
S&P/Case-Shiller Index [PDF via S&P]
Related posts:
- Why You Can Ignore The Case-Schiller Home Price Index
- Home Price Hotspots: Some Twin Cities Markets See Prices Rise
- PMI Risk Index: 19% Chance That Twin Cities Home Prices Will be Lower in Two Years
- Twin Cities Market Ranks Top Five in August Home Price Reductions
- Twin Cities Home Price Decline Accelerating, Down 12.5% in February
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