Foreclosures pressure Twin Cities market

Double-digit declines in median sales price, new listings

Flickr image courtesy of Micah Taylor.

The median sales price of homes in the 13-county Twin Cities, Minn., metro area fell 15.2 percent year-over-year in March, to $140,000, according to the latest monthly report from the Minneapolis Area Association of Realtors (MAAR), released Tuesday.

Home prices in the area have been under pressure from distressed properties, which made up 55 percent of closed sales last month — most of them foreclosures.

At the same time, pending sales fell 17.6 percent year-over-year, the number of new listings coming on the market fell 30.2 percent, and closed sales fell 3.5 percent.

The association attributed the year-over-year declines at least partly to the expiration of a federal homebuyer tax credit program that spurred sales in spring 2010.

"This month’s numbers find themselves stuck in the shadow of the spring 2010 incentive market. A number of factors hinder a full-scale housing recovery, yet there are positives that suggest improving consumer confidence," the association said in the report.