Reporting Rachel Slavik
MINNEAPOLIS (WCCO) – It may be the most promising sign yet that the metro area is moving past the housing crisis.
The latest report from the Minneapolis Area Association of Realtors shows that pending home sales jumped 16 percent compared to last June.
And there are several other areas that are showing signs of improvement.
Todd George has just a few days left in his south Minneapolis home. Preparations on the pending sale of his house are almost complete after the home was on the market for one year.
“It’s a relief, because we’ve been living in another state for a few months now,” he said.
George is about to become one of thousands who are experiencing signs of a housing market recovery.
“The loan rates right now are so good that anyone who can move, it’s a good time to be a buyer,” George said.
The median price of a home increased about 11 percent to $179,000, and the average home is on the market for 113 days. Last year, the average was 145 days.
It’s all indications that buyers may soon lose their advantage.
“That pendulum is moving a little more in the other direction, so that’s encouraging, that’s very encouraging,” said Cari Linn, President of the Minneapolis Area Association of Realtors.
But the report also shows that supply is down. New inventory in the housing market fell 8.1 percent against last year.
Some homeowners are still hesitant to put their property up for sale.
“There are a lot of people who are still underwater and can’t afford to put their homes on the market,” Linn said.
Even with fewer options, George still waited a year to pack up his home, showing an industry turnaround will be slow, but each closing creates an opening for future sales.
The June data also showed a drop of 23 percent in new listings for foreclosures and short sales in the Twin Cities.