A while back I posted a disturbing report from Core-Logic and I noted that “something wasn’t right”. The Core Logic report showed Minnesota property values declining more than the rest of the nation, on par with Michigan.
Today I stumbled into a short article from Minnesota Public Radio titled “Minnesotans Losing Economic ground“, which gives a little perspective on my previous post. This article from MPR is one of the big factors weighing on our regional real estate market.
…”The trend is even more dramatic when we look at median income,” Wessel said. “Only Michigan, with all the challenges of the automotive industry, has seen a larger drop in median income over the last decade.”
…Census department data also show the median income of Minnesotans is dropping more quickly than the national average, down 16 percent over the last decade versus the 6 percent experienced nationally.
Not to try to state the obvious, but we really need to reverse this trend of median income dropping and high unemployment for our region… This is killing our real estate market.
I really am trying to look for positive news on this front… If you have a positive news story, please send it my way! Our housing inventory is way down, we have record low interest rates – but the unemployment and now median income is what is holding our market recovery back…
UPDATE: This article from MPR, Twin Cities housing numbers show lagging recovery was printed today as well. Wonder if they have drawn the connection between their 2 stories yet?
- Hennepin County & Minneapolis/St. Paul, Minnesota Unemployment Rates August 31 2011 (craigkamman.wordpress.com)
- Minnesota Unemployment Rate up to 7.2% August 19,2011 (craigkamman.wordpress.com)
- CoreLogics Home Price Index, how Minnesota ranks nationally July 2011 (craigkamman.wordpress.com)
- Minnesota could lose 2,767 medical device jobs because of a Medical Device Tax (craigkamman.wordpress.com)
- Twin Cities Population decline, by County (craigkamman.wordpress.com)
- Case Shiller Home Value Index MN vs. MN Property Tax revenue (craigkamman.wordpress.com)
- Minnesota Unemployment Insurance Claims decreased: Sept 09, 2011 (craigkamman.wordpress.com)