We make predictions and projections at the beginning of the year. I remember predicting that 2011 is going to be another rough year for the housing market and that it would be a lot like 2010.
It is turning out to be worse than I anticipated. I did not factor in a state government shutdown or the increase in gasoline prices.
Home prices in my market hit a new bottom and are slightly lower than they were when we hit bottom in 2009. I don’t see it as a double-dip housing recession but as a market that was heading down before being interrupted by the homebuyer and seller tax credits of the last two years.
The lowest-priced homes are selling, and after looking at June numbers I have concluded that the peak real estate selling season in my market is over for 2011. Real estate is local and there are signs of recovery in other parts of the country.
Here in Minnesota our local economy is taking yet another hit as many state government departments and services have shut down. Our governor and state Legislature are having a standoff on the state budget.