The Twin Cities housing market got off to a strong start this year, with a healthy gain in sales and only a moderate decline in the median price. During January there were 2,417 sales, up 12.4 percent compared with last year, according to the Minneapolis Area Association of Realtors. The median price of those sales was $140,000, down 3.4 percent from 2011.
The biggest shift during the month was a 25.5 percent increase in pending sales at a time when inventory continues to fall. That's putting the squeeze on buyers who now have fewer options than they've had in eight years. By another measure, at the current sales pace, there are enough houses to last only 4.6 months. Agents consider the market to be in balance where there's a six- to seven-month supply.
"Price declines are subsiding, partly thanks to changes on the supply-side of the equation. Rising home prices will still be the final phase of recovery," said Andy Fazendin, MAAR President-Elect. "We firmly believe that what we're seeing now is setting the stage for better times ahead."
The January report shows that the biggest challenge for the market continues to be foreclosures and short sales, which represented 42 percent of all listings.
