With yesterday’s headlines that Minneapolis housing values have dropped 9.1 percent it would be easy to make like Chicken Little and worry that the sky is falling.
But before you reinforce your ceiling, wait a minute.
Yes, according to the monthly S & P/Case-Shiller Home Price Indice, housing values have dropped in the Twin Cities since last July.
However, their report also contained data that between May and July, only Detroit saw a higher monthly rate of appreciation than we did.
In fact, between May and June, Minneapolis home values were up 3.5 percent. And between June and July they jumped another 2.6 percent.
Other cities that saw jumps included Chicago, Boston and Washington D.C. (For a full list click here.)
Remember. monthly housing statistics are not duplex and small multi-family specific. Rather, they include single family homes, townhouses and condos.
Duplex values are driven, in part, by rent. Very few vacancies and an increased demand for rental units cause rents to go up.
And when rent goes up, sooner or later, duplex values do too.