Just like not all stocks have dropped equally in a market now down more than 50%, not all homes or neighborhoods have suffered equally.
In fact, one of the reasons why the Twin Cities overall is down about 25% from the 2006 peak is that, while many homes have suffered relatively small price declines, others have been near wipe-outs.
Call them the “Citigroup’s,” “General Motors,” and “Fannie Mae’s” of the housing market.
The home pictured above, 328 Burntside, is a good example of the latter group.
Sold last for $899,000 in March, 2007, its new asking price of $369,900 reflects an almost 60% drop — and less than half(!) the current tax assessed value. And that’s just the asking price; the ultimate selling price could very well be lower (because I haven’t been in, I’m not going to venture a guess).
Typical of the homes that have dropped the most, it’s a foreclosure.