Residential housing transactions continued to level off in November but many areas are showing positive signs of growth, according to the Minnesota Association of Realtors.
Statewide, closed transactions increased by 4.4 percent over sales in October. This is unusual because November accounts for a smaller percentage of annual sales than October. Especially strong sales were recorded in the Southeast Region - including Rochester, Owatonna, Albert Lea, Austin, Red Wing and Winona.
"Gains in the number of closed transactions help reduce inventory levels and in turn will help boost home prices," said Russ Portele, 2011 president of the Minnesota Association of Realtors. "Housing affordability remained strong in November due to low interest rates and stabilizing incomes."
The year-to-date median home price statewide is $150,000. The median price is the same as a year ago when the Federal First-time Buyer Credit was fueling sales. Median home prices indicate the mid-point with as many homes priced above and below the indicated price.
Statewide Median Price $150,000 even
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7 County Twin Cities Region $175,000 +2.9%
Arrowhead Region $120,000 -0.4%
Central Region $145,000 +0.3%
East Central Region $116,000 -5.8%
Headwaters Region $136,750 -11.2%
North Central Region $131,400 -2.6%
Northwest Region $115,000 even
South Central Region $125,000 +1.2%
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Southeast Region $138,000 -0.6%
Southwest Central Region $110,000 -4.3%
Southwest Region $89,000 -6.1%
Upper MN Valley Region $77,000 -4.3%
West Central Region $138,500 +4.5%
"We're anticipating a stabilizing market in 2011 as employment increases and people become more comfortable with housing," said Portele. "Interest rates are the real wild card as a 1% increase in the interest rate can reduce buying power by $10,000. This is very noticeable with first-time homebuyers are very impacted when affordability changes."
