Home values in the Minneapolis and St. Paul metro area have been on a steady upward climb over the past couple of months but are still about $10k below when compared with other metro areas around the nation.

On a month over month basis, Twin Cities home values have increased by just 0.1 percent.  Additionally, home values increased by 0.1 percent on a quarter over quarter basis in the metro area.  Although the short term increase is minimal it is still a sign that has many experts in the area believing we have hit the bottom of the housing market.

According to Herb Tousley, director of the Shenehon Real Estate Center in the Opus College of Business at University of St. Thomas After examining the three factors that contribute to a healthy housing market, I think there is reason for optimism. The Twin Cities housing market has been through the worst and is poised for a modest rebound. Assuming that job growth continues, our employment situation is favorable. Housing is relatively affordable and it still makes economic sense to buy vs. rent.

US Zillow Home Value Index

Even as home values have shown slight growth during the spring and summer selling season, home values are still down 11.1 percent on a year over year basis and are $11,300 below other metro markets in the country.

Finding a home in the Minneapolis metro that has a better chance of holding its value and possibly even increasing in value over the next few months all depends on the specific neighborhoods throughout the are in which you are looking to purchase.