Industry News

Twin Cities home sales plummet, affordability improves

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Home sales in the Twin Cities, Minn., market dropped for the ninth straight month in December while prices kept pace with their year-ago levels, according to reports from four Twin Cities-area Realtor associations. There were 2,950 sales of existing single-family homes, condos and townhomes last month, down 18.9 percent from 3,638 sales in December 2005. Total sales activity for 2006 came in at 47,906 sales, which was down 16.3 percent from the 2005 level. The median home price in the 13-county region last month registered $229,000, down just 0.4 percent from the same month in 2005. For 2006, the median sales price was $230,000, an increase of 0.5 percent compared to 2005. "Since 1998, price growth has been extraordinarily high, between 6 (percent) and 12 percent each year," said Kay McDonough, 2007 president of the Southern Twin Cities Association of Realtors. "The calm in appreciation was expected, and is a natural byproduct of the market shift." Although more property owners decide...