CNBC staffer Diana Olick reports on the Minneapolis excelling housing market, with nearly 16 percent more buyers signing contracts to purchase a home.

During this time of the year, Minneapolis has some of the coldest weather, but this year it has been a little warmer and so has the home buying. The city has seen a foreclosure crisis in the past, but now both foreclosures and short sales are less than 10 percent. 

"It should be a cold time of year, but our market is really hot," said John Schuster, a real estate agent with Coldwell Banker Burnet in Minneapolis. "It's not as cold as it usually is, so that's helping the market. We're selling homes with multiple offers."

"It's really just finally come back to a traditional buyer/seller market. We're able to find the true market value because the hedge fund money is finally out," said Schuster.

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