Housing market could stabilize next year, one economist says

Minnesota's housing market may enjoy greater stability in 2012, according to a new economic forecast from Wells Fargo.

The Wells Fargo report says Minnesota's housing market is improving. Inventories of homes for sale are decreasing, which could push prices higher.

Home prices in the Twin Cities are still significantly down compared to last year, but picked up slightly over the summer, Wells Fargo economist Scott Anderson said. That gives him reason for measured optimism.

"We think housing is maybe on an upturn swing here for 2012 in Minnesota, but because of the declining outlook on the economy overall it's going to be a long slog ahead," Anderson said.

While home building permits remain at low numbers, Anderson expects new home construction will hit bottom and begin to pick up sometime in 2012.