The Twin Cities housing market is showing signs of recovery. A new report from the Minneapolis Area Association of Realtors shows home prices have risen for five consecutive months.
With market activity up nearly 2 percent last month over the same time last year, and 5,851 new listings on the market in July, housing supply is at a nine-year low.
Inventory has dropped almost 44 percent to just over four months supply, the lowest reading for any month since December 2005.
The key to continued recovery will be luring sellers back into the market, said Emily Green of the Minneapolis Area Association of Realtors.
"To have a healthy market you have to have a balance between supply and demand and we are seeing the issue moving forward as a lack of inventory," Green said. "We are all looking for those sellers who have a good property that they've wanted to sell, and we want to give them the news that it might be a time to revisit whether or not it's the right time to put it on the market."
The Twin Cities median sales price was up more than 14 percent in July to $179,950.
"This isn't just a blip on the screen. We are really seeing a trend here with increased confidence, both with buyers and sellers," Green said. "But what has happened recently is that the buyers have really ramped up their confidence and are taking action and writing purchase agreements."