Twin Cities home purchases up, prices down

The Twin Cities real estate market provided some encouraging signs in January but also reasons for ongoing concern.

The number of signed purchase agreements was up 26 percent in January over the same month last year and reached the highest number since 2005.

But foreclosed and other distressed properties accounted for about 40 percent of new listings last month and that's depressing prices. The median home sale price was $140,000, down about 3 percent from January of last year.

Roger "Andy" Fazendin, president-elect of the Minneapolis Area Association of REALTORS, said things seem to be on the upswing overall.

"With inventory down and pending sales up and with the mortgage rates at historically low levels, that's going to force more people out buying houses and gobbling up the inventory," he said. "At a certain point, prices are going to start to increase."

The Twin Cities median sales price has fallen by about $100,000 since the peak in 2006.