Here's another sign that housing will follow an economic recovery, not lead it: A record number of homeowners received pre-foreclosure notices during the 2010, meaning that the housing market still faces serious hurdles in the way of more distress sales. It said that throughout the state the number of notices sent to struggling homeowners increased 8 percent from 66,570 in 2009 to 71,665 last year. The problem is clearly getting worse in some rural counties. Notices increased 3 percent in the Twin Cities metro area, but 15 percent in greater Minnesota.

Ed Nelson, the Homeownership Center's marketing manager, said that while the increase was a disappointment, the rate increases have begun to slow and in the Twin Cities the trend has almost leveled off. That's not a guarantee that the number of foreclosure notices will ebb during the coming year, but it's a promising sign.

"While we are seeing signs that the housing market may be stabliizing, these numbers show that Minnesota is not out of the woods yet," Nelson said.

The data is compiled by the Minnesota Home Ownership Center by counting pre-foreclosure notices received by the Homeownership Advisors Network, a statewide network of housing counseling agencies. Those notices, which include information about foreclosure prevention, are required by state law to be sent to the mortgagee. Counseling centers also receive notice of the pending foreclosure, as well.

More details can be found at the Homeownership Center's housing blog.