Minnesota home sales drop 40 percent in July Minneapolis / St. Paul Business Journal - by Jim Hammerand Staff writer
Minnesota home sales dropped 40 percent in July, the Minnesota Association of Realtors said on Friday.
MAR President Michael Hoffman said homeowners trying to sell face a "difficult marketplace," but said the decline wasn't surprising given the expiration of the federal homebuyer tax credit.
"Although disappointing, it was expected that following the expiration of the federal tax credit, sales activity would slow for a few months,” he said.
Year-to-date figures are still even with last year, the group said, and the statewide median home price increased 2.3 percent from last year to $153,500.
The median price increased 3.4 percent in the seven-county metro area. Median price growth ranged between 11 percent and 17 percent in the Arrowhead, North Center, Northwest and West Central regions, and grew 36.6 percent in the Headwaters region.
MAR expects more volatility in the months to come and said a lasting recovery depends on improved employment trends and low interest rates.
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