Growth in housing prices in Minnesota's largest housing market seem to mirror a national trend: solid but slowing.
A new report suggests home prices nationwide continue to rise, but the end of a vigorous recovery may be near, U.S. News and World Report notes.
July's housing prices showed signs of leveling off, according to the latest S&P/Case-Shiller Home Price Index figures, for July, which were released Tuesday.
Year-over-year, the Case-Shiller 20-city composite index remains solid, with prices increasing in all 20 large urban markets. Minneapolis housing prices are up 9.5 percent year-over-year from July 2012. (That compares to about 12 percent for the broader 20-city index.)
But price growth has slowed in recent months. Here's the price growth for Minneapolis:
March to April: 2.9 percent
April to May: 2.1 percent
May to June: 2.3 percent
June to July: 1.8 percent
“The story here, we think, is simply that the rise in rates has deterred some proportion of would-be homebuyers, at a time when inventory has started to rise,” Ian Shepherdson at Pantheon Macroeconomics, told the Wall Street Journal. “Sellers have had to respond, so price gains are slowing. This process is likely not over yet.”
The Case-Shiller index says the Twin Cities housing values remain more than 20 percent below their peak in 2006, MPR notes.