Home sales plummeted 42 percent in the Twin Cities area last month, the sharpest
year-to-year decline among 20 metropolitan areas surveyed by the National
Association of Realtors.
The national average is 26 percent. Both numbers are steeper than the experts predicted for the post-tax-break real estate market. Not even lower interest rates have been able to shake people’s motivation to buy as folks seem to be getting nervous with the stalled economy.
But while the monthly numbers seem bleak, the Star tribune points out that looking through a greater window of time, the situation isn’t as bad..
In fact, the situation in the Twin Cities might not be as dire as July results appear. Home sales so far this year are only slightly behind last year, down 3.8 percent compared with the first seven months of last year. And there were several months when the number of home sales locally surged compared with the rest of the country. In July 2009, for example, home sales posted an annual increase of almost 28 percent, followed by annual increases of 28 percent in October and 67 percent in November — the biggest increase that month in the 20-city survey.