Quote:U.S. home prices tumbled in April at the fastest rate since a widely followed index was begun in 2000 with all 20 metropolitan areas surveyed posting annual declines for the first time.
The Standard & Poor’s/Case-Shiller home price index of 20 cities fell by 15.3 percent in April versus a year ago, according to Tuesday’s report. Prices nationwide are at levels not seen since August 2004.
The narrower 10-city index declined 16.3 percent in April, its biggest decline in its more than two-decade history.
Meanwhile, a report from the Office of Federal Housing Enterprise Oversight said U.S. home prices fell 4.6 percent in April from the same month last year, when the index peaked. That marked the biggest decline ever in the agency’s monthly index which dates back to January 1991.
While the government report has shown nationwide price declines, the Case-Shiller index has shown far greater drops because it focuses on larger cities where prices rose further during the boom years, and includes riskier loans.
... ... http://www.msnbc.msn.com/id/25346624/
Though the information is not necessarily “good news” for US homeowners, it does not totally surprise me. With fuel and food costs rising at such rapid rates, real estate prices have seen a dip as housing supply has increased and demand dwindled. With so many REO and short sale listings currently on the Minnesota MLS, buyers are able to pick and choose which property they want to offer on. They have so much more negotiating power, and as a result, sellers are often forced to take less than they would have hoped for.
Locally, listings of Minnesota MLS have seen price dips, however with the high level of appreciation from 1998 to 2004, a leveling and decrease was in my opinion, necessary for our local marketplace. Again, who buys real estate? We all do of course. And when homes get to point of being unaffordable based upon other market conditions, prices will level off and even dip.
Long term, our job market here in the Twin Cities is solid, and all population forecasts predict great growth for Minneapolis and St Paul. This all bodes well for real estate prices long term here in the Twin Cities.