With fewer people putting homes on the market and the declines in closings slowing, the Twin Cities is very slowly soaking up the excess inventory clogging the market.

The overall median sale price continued its double-digit drop. Closed home sales still fell 4 percent in August year-over-year, but by the smallest amount in over two years.

A potential bright note: Pending sales that have yet to be closed jumped a notable 15 percent from last year -- the second time pendings have risen in about 30 months. It's a trend everyone in the local market is watching with hope it signals a return of buyers.

The jump in pendings could be reflecting high numbers of foreclosures, short sales and other lender-mediated deals which aren't always easy to bring to a close.

The Minneapolis Area Association of Realtors also points out that the big increase in pendings is affected by particular weakness in August a year ago affecting the year-over-year comparison, and may also reflect people taking advantage of the new $7,500 tax credit for first time homebuyers and buyers rushing to take advantage of the seller-financed down payment assistance programs with FHA mortgages before the programs end Oct. 1.