February brings some good news, some bad news

The Minneapolis/St. Paul housing market is starting to improve.  Showings and offers have been rising steadily…. but so has the number of homes for sale.  While January did show some good signs, the number of homes that received an acceptable offer and are waiting to close (called Pendings) is down about 5% from last year.  While it is way too early in the year to determine trends, most agents believe that 2005 will be marked by less house price appreciation, slowly rising interest rates, and homes that take longer to sell due to increased inventory.  This is by no means a bad scenario…. in fact, 2005 is shaping up to be more like a “typical” year that we haven’t seen around here since the mid 1990’s.