MINNEAPOLIS (WCCO) – Just-issued figures for 2011 are showing signs of recovery in Minnesota’s housing industry, with good news for buyers and sellers.

The Minnesota Association of Realtors reports a 2.9 percent increase in closings statewide last year, with a 9 percent increase in the Twin Cities metro area.

And the good news for sellers? Chris Galler of the Realtors association says the inventory of homes for sale is shrinking, which is driving up prices, though very gradually.

“That’s what people need to keep in mind,” said Galler, “so they don’t get overly jubilant and say, ‘Oh boy, prices are going to go up $10,000!’ They’re not.”

Buyers, at the same time, are still seeing low prices. The median, or midpoint, price statewide fell 8.4 percent in the past year, to $135,000.

NewsRadio 830 WCCO’s Steve Murphy Reports