ST. PAUL
For the fifth consecutive month, Twin Cities home prices fell and sales shot up - a mixed collection of data that signals continued uncertainty in the housing market.
As homes have become harder to sell, the median price in the 13-county metro area declined 10 percent in November to $149,250 from a year earlier, according to the Minneapolis Area Association of Realtors.
But the association reported an 18 percent jump in closed sales in November - to 3,044 from the same period in 2010. Pending sales, an indicator of future activity, increased 30 percent to 3,321 last month.
The inventory of homes for sale plunged 24 percent to 19,516 - the lowest November inventory reading since 2004. At current rates, the supply of homes on the market should last 5.7 months, but that's down from 8.2 months a year earlier.
ADVERTISEMENT
November was only the third month in more than five years that had less than a six-month supply of housing inventory. Real estate observers consider a five-month supply of homes for sale a balanced market between sellers and buyers.
"Despite the dramatic drop in inventory, prices are still bound by distressed activity, budget-conscious consumers and a general sense of economic uncertainty," said Brad Fisher, president of the Minneapolis trade group, in a statement.
The number of traditional sales that closed last month rose 15 percent to 1,526, according to the Minneapolis real estate agents' data. Foreclosures were flat at 518. Short sales - or
sales where the price was not enough to pay off the mortgage - rose 26 percent to 425.
Meanwhile, prices fell in all three categories. The median price for a foreclosure dropped 14 percent to $98,500 and the median for a short sale was down 12 percent to $130,000. The median price for a traditional home sale fell 9 percent to $187,400.
Cari Linn, the Minneapolis Realtors' association president-elect, sees some re-assuring patterns taking hold but said she isn't ready to predict the market's problems will be washed away by spring.
Distributed by MCT Information Services
