The Legislature's decision to replace the homestead tax credit with a market value exception saved the state money ... by shifting the cost onto local property taxes. That's the main ingredient in a mix of factors pushing up property tax bills around the region.

Good news for the housing market: The S&P/Case-Shiller home price index rose 2.2 percent in May, beating economists' forecasts, as all 20 of the nation's largest metropolitan areas posted gains from April. And 12 of the 20 cities had higher prices than they did a year ago, suggesting that the improvement is durable, the report said. In Minneapolis, housing prices were up 3.1 percent from April, and up 4.7 percent from last year.

Rents in Minneapolis have increased nearly 10 percent in a year, with home prices down nearly seven percent in that same time. Experts say that combination - plus an improving job market - sets the table for a surge of home purchases. Nationwide, housing starts are at their highest level in more than three years.

A report from Standard & Poor's shows Twin Cities home prices fell 0.6 percent in November and were five percent lower than the year before. Searching for a positive spin? The decline here was only half as big as the national drop.