Residential housing transactions continued to level off in November and many areas are showing positive signs. Statewide closed transactions increased by 4.4 percent over the October number. This is unusual since November accounts for a smaller percentage of annual sales than October. Especially strong sales were recorded in the Southeast Region which includes Rochester, Owatonna, Albert Lea, Austin, Red Wing and Winona.

"Gains in the number of closed transactions helps reduce inventory levels and in turn will help boost home prices," said Russ Portele, 2011 President of the Minnesota Association of REALTORS^®. "Housing affordability remained strong in November due to low interest rates and stabilizing incomes."

Median home prices indicate the mid-point with as many homes priced above and below the indicated price. The year-to-date price statewide is $150,000 through 11 months. This is exactly where the median was a year ago when sales activity was being fueled by the Federal First-Time Buyer Credit. Some parts of the state have shown positive signs as move-up buyers take advantage of historically low interest rates.

"We're anticipating a stabilizing market in 2011 as employment increases and people become more comfortable with housing," said Portele. "Interest rates are the real wild card as a 1% increase in the interest rate can reduce buying power by $10,000. This is very noticeable with first-time homebuyers who are very impacted when affordability changes."