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.

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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.

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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 Some sellers have withdrawn property from the market waiting for a better price later.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.

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WCCO’s Bruce Hagevik Interviews Christopher Galler