Inman News reports on the Twin Cities. "Home sales in the Twin Cities, Minn., market dropped for the ninth straight month in December while prices kept pace with their year-ago levels, according to reports from four Twin Cities-area Realtor associations. There were 2,950 sales of existing single-family homes, condos and townhomes last month, down 18.9 percent from 3,638 sales in December 2005."

"The median home price in the 13-county region last month registered $229,000, down just 0.4 percent from the same month in 2005. For 2006, the median sales price was $230,000, an increase of 0.5 percent compared to 2005."

"'Since 1998, price growth has been extraordinarily high, between 6 (percent) and 12 percent each year,' said Kay McDonough, 2007 president of the Southern Twin Cities Association of Realtors. 'The calm in appreciation was expected, and is a natural byproduct of the market shift.'"

"Inventory remained high in December, with 22,834 homes available for sale, up 19.6 percent from 19,098 in December 2005."

The St Paul Pioneer Press. "Home prices flattened around the Twin Cities last year, but on the whole didn't slide backwards, new year-end data out Wednesday show. That's a nugget of good news in a housing market that, despite the cheerleading of resolutely optimistic real estate agents, looks as dreary as last month's Christmas tree."

"Sales dropped 16 percent for 2006 as inventory, and foreclosures, hit local records." "Sure, some suburbs saw big gains. But others saw the opposite. In Inver Grove Heights, the median dropped 7 percent from $221,000 to $205,450."

"Minneapolis Mayor R.T. Rybak and Nancy Homans, St. Paul Mayor Chris Coleman's policy director, called for action to address rising foreclosures that Rybak described as a crisis that is 'robbing citizens of the American dream.'"

"Local Realtors attending said that they suspect the worst of the nation's housing correction has already passed the Twin Cities, conforming to the National Association of Realtors assessment that the nation's housing market hit bottom in September. As for foreclosures, they spell great opportunities for first-time families seeking affordable housing."

"'The last year has been a pause, and that's OK,' said veteran Realtor Steve Hyland, new president of the St. Paul Area Association of Realtors. Hyland said he thinks the metro area's housing market hit bottom months ago, but acknowledged there's little hard data to prove it."

"Realtors Wednesday appeared leery of projecting where prices are headed. That may be because last year's forecast of around 5 percent, near the area's historical average, didn't pan out. Mark Allen, chief executive of the Minneapolis Area Association of Realtors, said he predicts home prices will grow about 1 percent in 2007."

"Others aim higher. 'If we didn't see 2 to 5 percent, depending on the area, I'd be surprised,' said Hyland. 'Shame on me if we're way off.'"