New home sale data shows that foreclosures and short sales continue to wreak havoc on the housing market in the Twin Cities metro area.

During March, bank-owned listings represented 43 percent of all pending sales, causing the median sale price of all closed deals to fall 15 percent to $140,000, according to data released this morning by the Minneapolis Area Association of Realtors.

Prices plummeted in January and have been unable to gain any traction. In January, the median sale price was $140,000 and in February it was $142,500.

Most of the downward pressure on the medians come as a result of an increase in the number of distressed sales. The median price of all traditional deals was down only 4 percent, while prices on foreclosures fell 11 percent. Agents say that while the purchase of a short sale or foreclosure can take many months, many lenders are eager to liquidate their holdings and are dropping prices.

Historically, sales activity last month was down significantly, but here's evidence that more buyers are in the market than there have been since the crash. The overall number of closed sales was down 4 percent compared with last year, when sales were bouyed by the home buyer's tax credit. Compared with 2009, sales last month rose 6 percent and were 15 percent higher than 2008.

Traditional sellers are having a difficult time competing with lenders, causing something of a shortage of listings that aren't bank-owned or short sales. In fact, the number of new listings that hit the market last month fell 30 percent compared with last year, causing overall inventory levels to fall 5 percent - the lowest inventory for that March since 2005.