Reports of a housing rebound have been greatly exaggerated

Look out, below! The Twin Cities housing prices are in a nosedive. Again. The Case Shiller Index, which measures the resale values of homes, dropped another 1.9% in October from September, according to the report released this morning.

The drop wipes out all of the gains in prices the Minneapolis area made in 2010, most of which came in the late spring. Resale prices are down 1 percent on the year, and are down almost 3 percent from one year ago.

Housing rebound? It ain’t happening. We may not have reached bottom yet.

It could be worse; we could be Chicago, where prices have dropped 6.5% in the last year, the survey said. Of the 20 metropolitan areas surveyed, only Los Angeles (3.3%), San Diego (3.2%), San Francisco (2%), and Washington (3.7%) recorded an increase in housing prices from a year ago.

Click on the table below to see a bigger image.

More analysis here.