Minneapolis Housing Prices and Rents

The housing market while still trending downward seems to be improving in the Minneapolis area. It seems that we are seeing more houses selling and the drop in prices slowing. This could mean that a bottom is near for the housing market. Another factor that could be affecting home prices is low vacancy for apartments in the Twin Cities metro, that is causing rents to rise and become more expensive than home ownership.
The issue for many people when buying a house is that credit scores may not be good enough to qualify for a decent mortgage rate, forcing people to rent. The other factor is fear over the potential for further loses in the home market. It will be interesting to see what the rest of 2012 has in store for the Minneapolis housing market, to see if price decreases continue to slow, and home sales continue to increase. The biggest factor in home prices rebounding will be fewer foreclosures and short sales affecting property prices. Once the inventory of distressed properties is reduced it will allow prices to improve gradually.