Twin Cities showing gains in August

The Twin Cities housing market was able to increase sales in August, despite a clogged inventory full of foreclosed properties pushing home prices down. The Minneapolis Area Association of Realtors reported the number of houses put up for sale decreased for the month, while sales increased significantly compared to statistics from 2010.

The Realtors association found 6,144 new listings were brought into the market in August, which is a 10.7 percent decrease from August 2010. In addition, 4,358 buyers entered into purchase agreements, up 46.4 percent from the same time last year. Compared to August 2010, inventory levels dropped 21.4 percent, the largest year-over-year decline in nearly seven years for the metropolitan area.

"Less inventory means less competition among sellers in a marketplace slowly transitioning from the buyer's favor to one of balance," said Brad Fisher, president of the Minneapolis Area Association of Realtors.

In an interview with the Minneapolis Star Tribune, the association's president-elect, Cari Linn, said home prices still remain low, and the economy is not helping the housing market recovery.

"The fact that there were literally no jobs added nationally in August is fairly worrisome for many in our industry," Linn told the news source. 

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