Home sales in the Twin Cities

Home sales in the Twin Cities rose 21 percent in March, thanks in part to lower interest rates and new federal tax credits, area Realtors said this morning. There were 4,407 pending sales in March, up 21.3 percent from a year ago, according to data released by the Minneapolis Area Association of Realtors. That's 10 consecutive months of year-over-year increases in pending sales and the largest such increase since December -- another month in which mortgage rates dropped precipitously. In a prepared statement, the association said the increase was more than just a seasonal shift.

"Low rates and ridiculous affordability are driving this deal," said Steve Havig, president of the association. "The $8,000 federal tax credit for first-time home buyers adds fuel to the fire." But the report also showed a continued slide in home prices. The median sale price for all properties was $154,125 in March, down 22.9 percent from a year ago. The association attributed that to increased prevalence of foreclosures and short sales. The median March sale price of traditional homes was $215,000, down 2.3 percent from a year ago.