Twin Cities home market 'on the up'

New numbers from the Minneapolis Area Association of Realtors indicate the Twin Cities housing market continues to improve.

In August, pending home sales were up nearly 20 percent compared with the same month last year. The median sale price rose 15.5 percent to $179,000.

"Most of the market indicators that we track are all on the up," said Andy Fazendin of the Minneapolis Area Association of Realtors. "We've had a very, very good market the past six months. And there's been a lot more transactions going on. A lot of that has to do with lower prices and low interest rates."

The increase of pending sales isn't adding to the low supply of homes for sale though, Fazendin said.

"Houses are selling quicker and for a little bit more dollars. But there hasn't a tremendous rising in the sale prices, at least not enough to give the critical mass of potential sellers the confidence to list their homes," he said.

The number of homes for sale is at its lowest level since December 2003. Fazendin said that reflects a decline in the number of foreclosures and short sales, as well as home owners waiting for prices to rise before putting a house up for sale.