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Old 05-31-2011, 11:45 AM
 
Location: Minneapolis, MN
4,931 posts, read 8,464,304 times
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Default Minneapolis house prices continue to fall

Minneapolis leads home price declines | StarTribune.com

Not that this is anything new, but it's still relevant to this message board. The housing market continues to lag even with the recession over and the economy starting to slowly recover.
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Old 05-31-2011, 03:28 PM
 
Location: Home in NOMI
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The gov't says the recession is over, but do you see any evidence of that? Or is it just wishful thinking on the part of the guys that gave Goldman Sachs all the recovery money?
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Old 05-31-2011, 07:11 PM
 
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Of course the politicians want the recession to be over...campaign season is getting started (ugh...) I see little evidence of recovery also. Perhaps hobbling along in select areas...

That said, it unfortunately isn't a surprise prices continue to be weak, at best...there is simply way too much supply with foreclosures and banks quick to want to get rid of them - so they sell at a loss simply to get it off the books and not have to maintain the houses. You then have plenty to people hopelessly underwater on their mortgages because they cannot sell at any decent price and simply make shrewd decisions to strategically default, which then leads to more inventory...
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Old 05-31-2011, 08:14 PM
 
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What's interesting is how Minneapolis avoided huge declines in the beginning of the crash and is only getting to it now. I remember in the beginning seeing statistics showing how the housing market in areas of the midwest, including the Twin Cities, was doing quite well as compared to the rest of the country. And now it's dropping full steam like it was 2008 all over again.

My only guess is that while 2008-2009 declines in the rest of the country was largely because of super inflated values. While the Twin Cities saw some of that during the boom, it wasn't anything like what happened in FL, AZ, CA, Vegas, etc. So that was the first decline. Just letting air out of the bubble. But the decline you see happening now in MN is because of unemployment. Or maybe people who were holding on but are now realizing that they may never get out of their underwater situation and have finally decided to just move on.

Anyway, interesting to watch. Many othe areas of the country are seeing price increases and starting an initial recovery while Mpls has just started the big decline.
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Old 06-01-2011, 06:42 AM
 
Location: Mound, MN
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Keep in mind that the market statistics are being severly impacted by the fact that 50% of the homes being sold are lender mediated. That makes the "median" sale price look like it's falling a lot more than it really is for traditional sellers. Once we get out of the trough the median prices will bounce back the other way and it will look like a big rebound in prices which will be overstated for traditional sellers.
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Old 06-01-2011, 10:34 AM
 
Location: Minneapolis
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also keep on mind last year had the $8000 credit for buying a house.

I see the upside of this. I purchased my house in Oct of last year. I paid $150k less for the house then had I purchased it in 2008. I wanted to buy a house just as the market topped out so we were seeing 900 Sq ft houses for over 300K. That to us was insane so instead, my wife and I started saving. In Oct of last year we were able to put 20% down without flinching and even with the possibility of the value of our house dropping over the next couple of years we will NOT be underwater on our loan.
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Old 06-01-2011, 11:47 AM
 
189 posts, read 228,538 times
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Quote:
Originally Posted by audadvnc View Post
The gov't says the recession is over, but do you see any evidence of that? Or is it just wishful thinking on the part of the guys that gave Goldman Sachs all the recovery money?

Unfortunately when they say the recession is over, they mean from an economical definition stand point (2 consecutive quarters of declining GDP). Of course, that ignores the way Americans feel, which is hard to measure. Of course with so many bailouts, it's hard to tell when GDP growth is real vs. financed.
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Old 06-02-2011, 11:14 AM
 
910 posts, read 1,164,976 times
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Quote:
Originally Posted by Citykid3785 View Post
Unfortunately when they say the recession is over, they mean from an economical definition stand point (2 consecutive quarters of declining GDP). Of course, that ignores the way Americans feel, which is hard to measure. Of course with so many bailouts, it's hard to tell when GDP growth is real vs. financed.
The way "Americans feel" doesn't define a recession, it's GDP which has been growing since March, 2009. Yes, it is over.
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Old 06-02-2011, 11:16 AM
 
Location: Mableton, GA USA (NW Atlanta suburb, 4 miles OTP)
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Quote:
Originally Posted by yoyoma02 View Post
The way "Americans feel" doesn't define a recession, it's GDP which has been growing since March, 2009. Yes, it is over.
While true in a technical sense, that doesn't mean the economy is much better than it is on the ground, and with gas prices rising and real estate entering a double-dip I don't expect things to improve very quickly, either.
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Old 06-02-2011, 11:54 AM
 
189 posts, read 228,538 times
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I think this all goes back to a "New Normal." Our generation has to avoid measuring ourselves against what the previous generation had. Debt had given individuals and our government things we did not deserve.
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