A new report issued by the Minneapolis Area Association of Realtors indicates the Twin Cities metro housing market continues to edge toward recovery.
In May, the number of purchase agreements for homes surged 27 percent to 5,130, when compared with the same period last year. In addition, the number of properties being sold decreased 6 percent to 6,599 properties in May. The reports says the combination of activity drove down the number of homes for sale by 31 percent.
The median sales price of homes increased about 11 percent to $169,000 in May -- the third-largest jump since January of 2004, and the third consecutive month of year-over-year gains. This figure has increased nearly 23 percent since February, and home prices are now at their highest level since October 2010.
Prices are edging up because distressed properties now comprise a smaller share of overall sales, the report states. Traditional closed sales fell 12.8 percent, while short sales increased 12.9 percent. Distressed homes made up 31 percent of all new listings and 39 percent of all closed sales, the smallest shares since June 2008 and September 2008, respectively.
Said MAAR's Andy Fazendin: "May looks great on paper and on the street. Buyers are active, sellers are starting to see some brightness on their end and the market is rediscovering a nice balance."
Janet Moore covers commercial real estate for the Star Tribune.