Minnesota housing market trends toward recovery

The newest housing report from the Minnesota Association of Realtors shows a housing market trending in the right direction: toward recovery. The latest numbers show increases in closed sales, median sales price and a decrease in inventory compared to 2011.

People selling homes across Minnesota saw prices go up in May and received 93.1 percent of their initial asking price compared to 90 percent in May 2011. The latest housing numbers from May show the median sales price statewide was $150,000, up 9.9 percent compared to the same time last year. The median price was up more than 6 percent. May was the fourth straight month of price increases in Minnesota.

“Lower inventory will help push prices up, since we’re starting to get rid of distressed properties,” said Chris Galler, CEO of the Minnesota Association of Realtors. “Ten of the state’s 13 regions have seen increases in May in their median sales price.”

Median sales prices in the West Central Region, including Douglas County, were up 11.9 percent compared to last year. Statewide, numbers are up 9.9 percent.

Pending sales and closed sales were also up statewide. Homebuyers and sellers closed on 8,446 properties in May in Minnesota, up 11.2 percent from May 2011. Closed sales were also up 10.9 percent.

“The newest housing numbers reflect what Realtors are seeing in the field,” said June Wiener, president of the Minnesota Association of Realtors. “Homes that are in move-in condition and priced right are selling quickly, even in just weeks. Homebuyers are starting to see that if they find a property they love, they should make an offer quickly.”

Homes were on the market for an average of 102 days in May, down more than 11 percent from 2011. This was the fourth month in a row that the days on market indicator went down.

The Minnesota Association of Realtors is the largest professional trade association in the state with more than 19,000 members who are active in all aspects of the real estate industry.

Tags: local news, news, housing, market