Minneapolis Housing Market is tough

According to the Minneapolis Star Tribune

The final numbers are in and it’s official: 2010 was the worst year for home sales since the local Realtors association began tracking home sales in the metro area nearly a decade ago.

The article quotes from the Minneapolis Area Association of Realtors…

For 2011 the association predicts that sale prices will rise a few thousand dollars, to $175,000, but that depends entirely on interest rates and how quickly foreclosures are processed, the group said. That process now takes about year.

Though interest rates have risen slightly in recent months — still hovering near 5 percent — the decline in sale prices has caused housing affordability to rise to near-record levels. That’s why sales agents are optimistic that the market will improve slightly, or at least stabilize.

For buyers that tempered good news. Housing prices have remained low, but they have not dropped significantly. And it sounds as if the probably won’t. If the interest rate stays low and mortgage companies start lending again, the market could improve for buyers.

In the words of Herb Tousley, a real estate expert at the University of St. Thomas…

“I think it’s going to be a year to be cautiously optimistic,” Tousley said.

Submitted by Minneapolis Realtor, Mary Rugani.

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