Duluth-area home sales continued showing signs of stabilizing in November, boosted by the first-time homebuyer tax credit. But, because most of the homes sold were entry-level, the median sales price was down.
The Duluth Area Association of Realtors said 169 homes were sold in November, 77 more than the 92 sold in November 2008 and six more than the 163 sold in November 2007.
November sales show that the Duluth market appears to have recovered from the recession, albeit induced by the federal stimulus program.
The median sales price fell from $135,000 in October to $123,000 in November, which is the lowest since $113,000 in March, when the recession began to push prices down. November's median sales price is a 15 percent decrease from $145,000 in November 2008 and 20 percent lower than $152,000 in November 2007.
Mike Peller, president of DAAR and owner of Gables & Ivy Real Estate, said sales of lower-priced homes have carried the Duluth market.
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Sales of homes priced less than $125,000 are up 22 percent in Duluth in a 10-month comparison of January-November 2009 with the same period in 2008, Peller said. Meanwhile, sales of homes priced more than $125,000 are down 6 percent in a comparison of the same 10-month periods.
Peller has said the extension of the tax credit through spring should spur sales in higher tiers of the market. The tax credit has been extended to April 30 and includes existing homeowners seeking a home priced less than $800,000.
