News

With a new year ahead, home sales across Minnesota showed signs of recovery in 2011, according to the Annual Housing Report released by the Minnesota Association of REALTORS^®. The numbers of closed sales and pending sales were up for 2011, compared to 2010.
                                                       
Statewide, closed sales for 2011 were up 2.9% and pending sales were up 4.2% for the year compared to 2010. Higher closed and pending sales continue to help decrease inventory throughout Minnesota and are a positive indicator of a stronger housing market overall.

“Decreasing inventory remains a key factor in our continued recovery and the recovery of home values,” said June Wiener, President of the Minnesota Association of REALTORS^®. “Removing more properties, including lower-priced properties, from the market will help prices rebound.”

Home values remain a acause for concern for many homeowners. The median sales price statewide in 2011 was down 8.4% from 2010. The median is the midpoint, indicating as many transactions above as below the stated price. In 2011, the median price statewide was $135,000.

Minnesota’s Housing Affordability Index (HAI) increased in 2011 as interest rates fell and distressed properties made residential housing more affordable. At the end of 2011 the HAI was 140, an 11.1% increase from 2010. The HAI measures the median income of a Minnesota family compared to median home price. When the index measures 100, the median family has 100% of the income necessary to qualify and purchase a median priced home.

Looking at the final month of 2011, pending sales in December were a positive sign as well for Minnesota’s housing market. Pending sales statewide were up nearly 14% from December of 2010.

“Closed sales were also up more than five percent in December compared to the same time last year,” said Wiener. “Those numbers paired with a double-digit increase in pending sales across Minnesota reaffirms the trend that REALTORS^® are seeing in the marketplace a trend of a market continuing its recovery.”

View the December 2011 Statewide Housing Report at www.mnrealtor.com/HousingReport/Dec11

The 2011 Annual Statewide Housing Report is also available: www.mnrealtor.com/HousingReport/2011