MINNEAPOLIS/ST. PAUL, Minn. - Analysis by the University of St. Thomas Opus College of Business shows that the median price of a Twin Cities traditional-sale home (not a short sale or foreclosure) dropped 10.25 percent during 2011.
That's not the only bad news: researchers also say one of every two homes sold in the metro area last month was a foreclosure or short sale. Researchers say the percentage of these "distressed sales" will have to drop before the Twin Cities housing market recovers.
The St. Thomas Residential Real Estate Price Report Index 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.
According numbers released Thursday, the median price of a traditional-sale home in the 13-county Twin Cities market decreased from $212,250 to $190,500 during 2011, for a loss of $21,750.
For comparison, in January 2005, a month near the apex of the residential housing bubble, the median price of a traditional-sale home in the Twin Cities was $232,500.
By December 2011, a span of seven years, that median price dropped $42,000, or 18.06 percent.
"This data is in stark contrast to the 31.35 percent decrease recorded by the Case-Shiller Index between January 2005 and October 2011, which is the most recent Case-Shiller data available," explained Herb Tousley, director of real estate programs at St. Thomas.
The percentage of distressed sales in the Twin Cities continued its upward trend in December, increasing from 48.8 percent in November to 50.18 percent in December.
Here are some more market changes from November to December:
- For traditional sales, the median price dropped 0.26 percent, from $191,000 to $190,500.
- For short sales, the median price dropped 5.06 percent, from $128,500 to $122,000.
- For foreclosure sales, the median price increased 5.52 percent, from $104,250 to $110,000.
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