Home sales activity in the Twin Cities metro area tumbled again during April, with pending sales falling 26 percent to 4,289 compared with April 2010, according to data released today by the Minneapolis Area Association of Realtors.

The steep decline was anticipated because of tough comparisons from April 2010, the final month for the federal incentives of up to $8,000 for first-time buyers.

Slack demand and a steep increase in the number of foreclosure sales last month caused the median sale price of home sales to fall almost 15 percent to $145,000. Most of that decline came from lower sale prices on foreclosures, which fell 19 percent to $103,000.

Prices on traditional deals fell just 3 percent to $193,000, but are still up compared with the first three months of the year.

Foreclosures and short sales, which represented 47 percent of all pending sales last month, continue to dominate the market, while buyers and sellers of non-distressed properties steer clear of the market and its historically low prices. Pending sales of foreclosures rose 31 percent, while traditional sales fell 39.0 percent.

In addition, the number of new listings was down almost 26 percent compared with last year, causing overall inventory levels to fall 16 percent, the lowest for the month since 2005. Though 30 percent of new listings last month were distressed properties, it was the lowest percent since April 2010.

"Distressed properties are the only sales segment to post year-over-year gains," said Brad Fisher, President of the Minneapolis Area Association of Realtors. "Even so, it's reassuring to see that they made up the smallest share of all pending sales so far this year and even going back into 2010. The dynamic is improving."