Metro housing market continues to improve

by Annie Baxter, Minnesota Public Radio

ST. PAUL, Minn. — The Twin Cities housing market posted more signs of health in January.

Completed home sales jumped 11 percent from the same month a year ago and the median home price hit $160,000, up 14 percent over the year.

Low-priced foreclosures and short sales continue to play an oversize role but their role is diminishing. They accounted for a third of all new listings last month, down from just under half a year before. That is helping to boost the median sales price.

In January 2012, those distressed properties accounted for 55 percent of completed home sales. Last month, they made up about 43 percent of sales. Augsburg economist Jeanne Boeh said that's too much.

"It's still around 40 percent and it should be around 5 to 10," Boeh said. "We have a long way to go. We need more traditional sales."

Boeh said too many potential sellers of traditional, non-distressed properties are sitting on the sidelines. She said they want prices to climb higher before they list their homes.

The supply of homes for sale is at a 10 year low, suggesting a seller's market.