On Wednesday Morning, Ed Nelson from the MN Home Ownership Center was invited to join Shawn Prebil and Chris Murphy on the Prebil & Murphy Show on am1500 KSTP to discuss the rather startling Case-Shiller Numbers that were released on Monday.
A podcast of the 10:00 hour of the show is available on the KSTP website here (May only be available for a limited time). An MP3 is hosted on the Center's website as well, here. (It's a large file, so it may take some time to open).
SO... what DOES explain the Case-Shiller numbers? Here are some personal thoughts - take them with a BIG grain of salt:
- Are investors jumping into the MSP market - and buying up the lowest priced homes to rehab/rent?
- Are the number and availability of first-time buyer and down-payment assistance programs that have been announced by local cities, towns, lenders etc... causing the number of lower priced (generally the first-time market) homes to be sold at greater rates - dragging down the overall index?
- Are banks discounting their foreclosure and REO properties to get them off their books - again dragging down the index?
Any other suggestions? Feel free to add your thoughts in the comments.