14th Straight Month of Pending Sales Increases for the Minneapolis Area Housing Market

Minneapolis Area Association of Realtors -- Home prices continue to show signs of strengthening in August. From March 2009 through August 2009 the median sales price has grown from $154,125 to $175,000. During the same period last year prices were flat. Prices are stablizing due to strong buyer demand—especially in the lower price ranges—buoyed by low mortgage rates and the federal tax credit for first-time home buyers. For the 14th consecutive month, there were more pending sales than there were the prior year. August saw 4,897 signed purchase agreements, up 11% percent from August 2008. With the tax credit expiring in November, closed sales should stay robust for at least the next two months. Time will tell what the market looks like after that, but there will be less inventory.

MP: The chart above displays some of the key August data for the Twin Cities real estate market - home sales increased by 14.5% compared to August of last year, and the months supply of housing inventory decreased by three full months, from 9.9 months in August 2008 to 6.9 months in August of this year.