Just Listed brings you the latest news and information from the Twin Cities-area commercial and residential real estate market and beyond from veteran reporters Jim Buchta and Janet Moore.

Are recession threats already threatening a housing recovery?

Posted by: Jim Buchta under Buying Updated: July 19, 2012 - 3:39 PM

 

Home sales in Minnesota and across the country continued a streak of year-over-year increases during June, but a slight pull-back in national sales compared with the previous month suggests that still-struggling economy is putting a slight damper on the housing recovery.

The Minnesota Association of Realtors said Thursday morning that home sales across the state were about 5 percent higher than last year. Because of a decline in inexpensive foreclosure sales, the median price got a 10.4 percent boost to almost $160,000 -- up 10.4 percent from June of last year.

Across the country home sales were up 4.5 percent compared with last year, but fell 5.4 percent in June to a seasonally adjust annual rate of 4.37 million homes, the lowest number of sales since October, according to the National Association of Realtors.

Minnesota’s sales numbers are not seasonally adjusted, and largely reflect a strong seasonal surge in sales. The data include only properties that were listed and sold through a regional Multiple Listing Service, and annual sales of those properties were up in all 13 of the economic development regions tracked by the group.

The reports come even as mortgage rates hit new lows. On Wednesday Bankrate.com, Freddie Mac and others said that the average 30-year fixed-rate mortgage was had fallen to new lows. Freddie Mac's weekly survey said the 30-year now averages 3.53 percent with an average 0.7 point. Last week it averaged 3.56 percent; las year the average was 4.52 percent.

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