Minnesota home sales increased 11 percent during May, according to the Minnesota Association of Realtors. Coupled with stronger sales and a decline in foreclosures and short sales, the median sale price of those deals increased 9.9 percent. Sales were up in most of the 11 economic development regions tracked by the association, including the 7-county metro, but some reported a slight decline. In the Headwaters Region in the extreme northwest part of the state, sales had almost doubled, likely because of stronger sales of vacation homes.
As is true in the metro area, the outstate market is being stifled by a shortage of listings. Overall inventory levels last month were 17 percent lower than last year. It's a challenging situation for buyers who are trying to take advantage of low mortgages, which dipped to another record low this week. This morning Freddie Mac said that the average 30-year fixed-rate mortgage stood at 3.66 percent with .7 points.