Prices Keep Rising

Real Estate

Home prices keep rising in Twin Cities, but pace has slowed

A widely watched national home price index shows prices in June increased 3.9% over previous year.

House prices in the Twin Cities metro area have consistently outpaced the national average, but price gains this summer are slowing dramatically.

During June, prices in the Twin Cities increased 3.9% over last year compared with a 3% gain nationwide, according to the S&P CoreLogic Case-Shiller Home Price Index, which tracks repeat sales of the same homes.

After hovering between 5.5% and 6.3% during all of 2018, the index price gains in the metro started slowing significantly early this winter. Since April, annual price gains have increased at only about half the pace of the same time last year.

While the Twin Cities index reached a new high during June, those more-moderate gains have eased fears that the metro is on the verge of another price collapse, and they provide some relief for those who fear they are being priced out of the market.

“You want to see some price increases — that’s always good, but you don’t want to see increases that outpace wages or inflation,” said Herb Tousley, director of real estate programs at the University of St. Thomas. “This tells me that we’re not in a bubble.”