Positive outlook, lower standards duel in Minnesota housing market
Recently, this blog reported that national bankruptcy filings, as well as those in Minnesota, were down during 2012 compared to the previous year.
Recently, this blog reported that national bankruptcy filings, as well as those in Minnesota, were down during 2012 compared to the previous year. This decrease in filings may be attributed to the slowly lurching economy, which has been gaining steam steadily, if slowly, over the past two years.
As with bankruptcies, the outlook for the housing market in the North Star State has seemed similarly positive. A recent article in the Minneapolis Star-Tribune highlighted the recent spike in sales and new home construction as prime indicators that the local housing economy is on the mend.
From 2011 to 2012, home sales in Twin Cities metro area rose 17 percent, the source reported. That gain is higher than the national average, giving realtors, buyers and sellers alike a rosy outlook going into the new year.
However, on the other side of this coin lies the fact that when compared to pre-recession values and demand, neither Minnesota nor the United States has gained much ground, and despite a steady trend upward, some speculate that there could be a mini-bubble waiting to burst.
Robert Shiller, an economist for Yale, spoke with the McClatchy New Service and offered his opinion on the matter.
“The short-term indicators are up now. It definitely looks better, but we saw that in 2009,” Shiller said, making mention of a brief moment where the stimulus package spurred quick, but unsustainable growth in the housing sector.
Though most experts agree that the upward trajectory of sales and home values will continue in 2013, it cannot be said enough that many individuals are still struggling following the recession.