Half of Cities See Price Increases

Case-Schiller Price Index for Minneapolis.

A private survey out today reveals that half of the major cities analyzed showed month-over-month price increases.  This signifies the fifth consecutive month where at least half of the 20 cities surveyed showed price gains. 

According to the survey, the cities experiencing the largest price increases were Washington D.C., Chicago, and Detroit.  This is excellent news for the midwest, which has been hit hard by the housing bubble.  In fact, Detroit was one of only two cities (Washington D.C. being the other) that has experienced year-over-year price gains.  Compared to August of 2010, home prices in Detroit were up approximately 2.5%.

In the Minneapolis/St. Paul area, we did experience price gains, but not to the extent of Detroit of Washington D.C.  Month over month, home prices rose .4% in Minneapolis/St. Paul.  This is entirely consistent with the trends we've been seeing in the market:  fewer homes going up for sale, more pending sales, and consistently low mortgage rates. 

All of which is a long way of saying that the housing market is dramatically more stable than it was even a year ago.  Is it possible that we've hit the bottom?  It's hard to say at this point, particularly with the slower winter months ahead.  I believe we will have a much more clear picture at the beginning of Spring 2012.