With a new year ahead, home sales across Minnesota showed signs of recovery in 2011, according to the Annual Housing Report released by the Minnesota Association of REALTORS®. The numbers of closed sales and pending sales were up for 2011, compared to 2010.
Statewide, closed sales for 2011 were up 2.9 percent and pending sales were up 4.2 percent for the year compared to 2010. Higher closed and pending sales continue to help decrease inventory throughout Minnesota and are a positive indicator of a stronger housing market overall.
“Decreasing inventory remains a key factor in our continued recovery and the recovery of home values,” said June Wiener, President of the Minnesota Association of REALTORS®. “Removing more properties, including lower-priced properties, from the market will help prices rebound.”
CLOSED SALES: 2011 compared to 2010
7 County Metro Region +9%
Arrowhead Region -5.1%
Central Region +6.4%
East Central Region -0.6%
Headwaters Region -11.1%
North Central Region +1.4%
Northwest Region +9%
South Central Region -2.7%
Southeast Region -6.7%
Southwest Central Region +0.2%
Southwest Region +1.3%
Upper MN Valley Region -2.4%
West Central Region -1.1%
Home values remain a cause for concern for many homeowners. The median sales price statewide in 2011 was down 8.4 percent from 2010. The median is the midpoint, indicating as many transactions above as below the stated price. In 2011, the median price statewide was $135,000.
Minnesota’s Housing Affordability Index (HAI) increased in 2011 as interest rates fell and distressed properties made residential housing more affordable. At the end of 2011 the HAI was 140, an 11.1 percent increase f rom 2010. The HAI measures the median income of a Minnesota family compared to median home price. When the index measures 100, the median family has 100% of the income necessary to qualify and purchase a median priced home.
Looking at the final month of 2011, pending sales in December were a positive sign as well for Minnesota’s housing market. Pending sales statewide were up nearly 14 percent from December of 2010.
“Closed sales were also up more than five percent in December compared to the same time last year,” said Wiener. “Those numbers paired with a double-digit increase in pending sales across Minnesota reaffirms the trend that REALTORS® are seeing in the marketplace – a trend of a market continuing its recovery.”
The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 19,000 members who are active in all aspects of the real estate industry.