Twin Cities real estate sales sink

Home sales in the Twin Cities, Minn., metro area fell for the second consecutive month in November, with decreases in sales levels in almost every county in the region, according to the North Metro Realtors Association.

Realtors recorded 4,115 home sales in the 13-county area in November, down 11.9 percent from a year ago, and down 15 percent from 4,843 sales in October.

Anoka County saw 378 closed sales last month, a drop of 28.7 percent from a year ago, while Sherburne County had 119 closed sales, an 18.5 percent decrease from November 2004, the association reported.

"We will keep seeing closed home sales data like this until sellers' expectations of the real estate market become more realistic," said Jeff Green, president of the North Metro Realtors Association. "The market has returned to historically normal levels, meaning moderate growth rather than explosive growth. Sellers need to adjust their prices and timelines accordingly."

Median sale prices increased slightly throughout the Twin Cities last month, rising 4.5 percent to $232,000.

"It is important to note that these figures do not indicate that the "bubble" has burst. Real estate in the Twin Cities is still retaining its value," Green said. "2004 was a record year all around for the real estate market. If we compare last month's data with the more ordinary sales levels of 2003, we can see that home sales continue to show healthy gains. And at the year's end, 2005 sales levels will actually be ahead of 2004 overall."

New listings in the Twin Cities continued to increase, rising 12.5 percent over November 2004 to 6,091.

Statistics are provided by the North Metro Realtors Association and are based on closed existing-home sales as reported by the Regional Multiple Listing Service.

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