Weakness continues in Twin Cities housing market

For sale
Residential building for sale in St. Paul, Minn.
MPR Photo/Nikki Tundel

Minneapolis Area Association of Realtors said pending sales in the 13-county region dropped last month, compared to the same period last year. The number of signed purchase agreements dropped 13 percent to 3,082.

Closed sales were down 1.7 percent from February 2010, but were actually up 2.5 percent from the same month in 2009 and up 5.6 percent from 2008.

The Realtors' Association said the market was particularly strong in February of last year, when the deadline to qualify for the homebuyer tax credit was approaching.

The median sales price last month dropped 10 percent from February of last year to about $143,000.

"Foreclosure sales were up nearly 40 percent from last year, which accounts for a good part of the drop off," said Brad Fisher, President of the Minneapolis Area Association of Realtors.

This drop in prices hit some parts of the market harder than others. Traditional, non-distressed properties saw a price decline of 4 percent, down to $194,605; the price of homes in foreclosure dropped 12.5 percent to $105,000; and short sales (where a lender agrees to accept less than the amount owed on the mortgage) declined 3.2 percent to$140,290.

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