By Bruce Hagevik, NewsRadio 830 WCCO

MINNEAPOLIS (WCCO) — The median home price in Minnesota was down 8.8 percent in the first three months of this year and down more than 11 percent compared to March a year ago. Experts say tax credits offered to first-time home buyers last year were a factor.

The supply of foreclosed properties continues to decline this year with investors coming in with cash.

“We have a lot of home sales that are occurring in the distressed property area — foreclosures and short sales,” said Christopher Galler, CEO of the Minnesota Association Of Realtors.

Those sales are holding down the median price.

Inventory also is down. Some sellers have withdrawn property from the market waiting for a better price later. And that may happen in a few months.

“When we get to about the mid-year, somewhere in the middle of July and August, we actually think we will have leveled out and start to see increases in good numbers going forward,” said Galler.

As of now it’s a difficult time for sellers but a good time for buyers.

WCCO’s Bruce Hagevik Interviews Christopher Galler

Comments (7)
  1. whatever says:

    Basically if you missed out on the credit you didn’t really miss out as you would be paying less now for the same home than the credit was worth.

  2. Victim Du Jour says:

    Homes are a rip off, they are still inflated.

    Why don’t they do a story about how banks are not listing vacant homes. They even have people mow the lawns.

    Are they price fixing?

  3. HDMC says:

    price fixing? i dont see it. the longer a house sits, the more it deteriorates, the less its worth no matter where the market is. exterior upkeep is required by law i think.
    and to the 40% who recieved the $8k credit and are now in default, you are worthless/hopeless. same to all the other bums that quit paying for their homes, not that they couldnt pay, but CHOSE not to.

    population control, the end all solution.

  4. Victim Du Jour says:

    Can you explain why they aren’t listing vacant homes?

    Doesn’t it seem like they are trying to keep the market from correcting itself?

    I can think of several people who have vacant homes in their neighborhoods, and they are not Being listed on the market.

  5. Victim Du Jour says:

    One guy I know asked the lawn service mowing the lawn, and he said the bank pays him to mow vacant properties all over the city.

    1. captainobvious says:

      Dah because if those lawns arnt mowed they get city fines, some banks are not in a hurry to sell those homes in junk neighborhood because it cost money to sell them also and they know they wont sell, so theyre hoping for a recovery. where did that dolt get 40% that got tax credit are in foreclosure, 1st off when that program was being offered you needed exceptional credit it was after the market crash, so i find those numbers askew

  6. stillobvious says:

    Also i paid 125k for a 4br 2 bath house in a suburb over 2k sq foot id hardly say thats an inflated price, $900 a month payment 300 less than my apartment was

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