The news media is packed with stories about the recovery of the housing market. “Prices are up 15% compared to last year”.
On the surface, this is true. This chart was pulled from Minneapolis St Paul Metro MLS on August 15, 2013 and shows Median Sales Price for three time periods: the most recent 12 months, one year ago and two years ago.

These figures include all sales: Traditional, Foreclosure and Short Sale. What accounts for the dramatic increase? Is it low interest rates? Better job market? Buyer confidence?

All three?

Stay tuned….