Home sales in the Twin Cities, Minn., area were down for the seventh straight month in October, as near-record inventory finally cut into home prices, according to reports from two Twin Cities-area Realtor associations.

Realtors recorded 3,895 sales of existing single-family homes, condominiums and townhouses last month, down 19.6 percent from 4,843 sales in October 2005. During that period, the median home price in the 13-county region slipped from $230,000 to $228,000 — a 0.9 percent decline.

Some 7,894 new listings were added to the market in October, which is 4 percent below a year ago, marking the second consecutive month of year-over-year declines, after 14 months of record highs, according to the Saint Paul Area Association of Realtors.

Despite the drop in inventory levels, there were still 30,491 active listings at the end of October, which is a 24.3 percent increase from the same time last year.

The Housing Supply Outlook declined slightly to 7.5 months, which means it will take the current inventory of homes 7.5 months to sell through completely. The market is considered balanced when there is roughly a 5-month supply of homes available for purchase.

“Both the slight drop in median sales price and the continual decrease in housing inventory illustrate the market’s attempt to correct itself. With the region’s strong economy, continued job growth, and continued historically low mortgage interest rates, the market will find its balance soon,” said June Wiener, president of the Saint Paul Area Association of Realtors.

For the entire year, the Minneapolis Area Association of Realtors expects median price growth to settle somewhere between 1 and 2 percent, down considerably from the 6 percent to 12 percent growth seen in recent years. The group also said sales will continue their annual winter decline in the coming months until reemerging from hibernation in early 2007.

Statistics for this report were provided by the Saint Paul Area Association of Realtors and the Minneapolis Area Association of Realtors.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Keep up-to-date on tools and tactics to impress your clients and outshine your competition with the 2022 virtual bundle.Register Now×
Agent Appreciation Sale: Inman Select for only $85.CLAIM OFFER×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription