A national monthly housing report and a Minnesota survey of housing trends drew the same conclusion: the reinvigorated real estate market in the Twin Cities may be coasting to a slight slowdown, mostly due to climbing interest rates.
The Star Tribune reports that the the Real Estate Price Report Index from the University of St. Thomas cited a decline in the median sale price of homes in July, compared to the previous month, the first time there's been a month-to-month drop this year. Herb Tousley from the University's Shenehon Center for Real Estate reassured the newspaper that the shift is due to the typical seasonal slow-down.
KMSP's take on the monthly Residential Real Estate Price Report Index from St. Thomas keyed on the shift in foreclosures and short sales. In July, 20 percent of sales were for distressed properties, the lowest level since January of 2008.
The newspaper also cited the monthly S&P/Case-Shiller composite index of 20 metropolitan areas that clocks prices of single-family homes across the country. Ssix regions, including the metro, showed a month-to-month gain from May to June compared with ten cities during May. The paper theorized that's a signal the recovery is moderating.
From May to June the index was up 2.3 percent in the Twin Cities compared with a 2.1 percent increase from April to May, and slightly ahead of the national average of 2.2 percent. Annually, the Twin Cities index rose 11.5 percent, slighty lower than the national average.