The Twin Cities area actually saw a recovery in 2011 with a 8.2% increase in home sales. Unprecedented low interest rates and historically low housing prices are driving this recovery.
From their peak in 2006, prices have fallen 35 percent. Half of closed home sales in 2011 were either foreclosures or short sales. By comparison, in 2004 and 2005 as the housing market was booming, 3 to 4 percent of all sales were from foreclosures or short sales.