November metro home sales post slight gain

Article by: Star Tribune
Updated: December 10, 2008 - 11:15 AM

Pending sales were up 3.7 percent from a year ago, but the median sale price sank to $175,000, the lowest it's been since 2002.

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Twin Cities home sales in November ticked up compared with a year ago, but the median sale price sank to its lowest since early 2002, area Realtors said today.

Pending home sales in the metro area totaled 2,711 for November, the Minneapolis Area Association of Realtors said, up 3.7 percent from November 2007. Still, for the year to date, home sales remain 0.3 percent behind last year's pace.

Closed sales in November were 2,577, down 1.6 percent from November 2007.

The median sale price of $175,000 was down 19.2 percent from a year ago and also down from October's median price of $180,000. The Realtors group said that reflects the impact of foreclosures and other lender-mediated sales, which are accounting for about half of all home sales in the area. Excluding those distressed sales, the median price was $225,420, down 2.0 percent from a year ago.

The number of new listings coming on the market in November fell 18.9 percent, helping to move the market slowly toward equilibrium. This month, the market has an 8.5-month supply of homes for sale, down from 9.3 months a year ago. The market is considered balanced between buyers and sellers when there is about a 5-month supply.

In a prepared statement, association officials touted the effect of low mortgage rates, which have fallen sharply in recent weeks after the federal government announced plans to stabilize the mortgage market.

"It is absolutely 'go time' for anyone interested in making an affordable home purchase," said Kevin Knudsen, association president. "The current combination of low prices and low rates is unprecedented."

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