Reporting Steve Murphy
MINNEAPOLIS (WCCO) — There are more encouraging signs in the housing market.
The National Association of Realtors reported Wednesday that sales of previously occupied homes nationwide have jumped to the highest level in more than two years.
That trend is also reflected in the Twin Cities, where sales have increased 18 percent over the past year.
St. Thomas real estate professor Tom Musil said interest rates and psychology are major factors.
“Certainly low interest rates [and] the perception of buyers that we’re near the bottom of the market,” cited Musil.
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Musil emphasized that it’s a modest recovery.
“It’s headed in the right direction and there’s optimism in the market,” said Musil. “Underlying all this is some pent-up demand.”
Another sign of momentum is a 10 percent increase in the median home price in the Twin Cities from August last year to this year.