Rochester MN Housing Market Update 2020 Q1
Here’s your Rochester, Minnesota, housing market update 2020 Q1.
According to InfoSparks, the median sold price here in Rochester for 2019 was $244,430, which is up by 4.9%, from 2018’s $232,950. This is down from the difference of 2017 to 2018 where the appreciation was 5.9% and from 2016 and 2017 where it was 12.4%. These trends show that the housing market is slowing down.
However, this is no reason to panic as this is actually indicative of a more normal market. 10%+ appreciation rates are just unsustainable over time.
This is Alex Mayer with Counselor Realty, and if you’re watching this video, I want you to know that I am working in real estate today. So if you’re thinking about doing something here in the next year, give me a call, send a message or fill out any of the associated forms and we’ll work to connect.
Here are some other important numbers to pay attention to:
The number of homes that have sold in Rochester is about equal to the last couple of years, as you can see from looking at this graph. So the supply side of homes for sale in Rochester is staying about the same. The average number of days on market came in at 21 days. However, this does vary by price point.
We can see this by analyzing the Absorption Rate, which is used to calculate the total month’s inventory supply if homes continued to sell at the current rate. For example, under 200,000 there is 0.8 months’ supply, which is roughly three weeks of inventory; from 200 to 300,000, it’s 1.4 months or about six weeks; from 300 to 500, it’s 3.2 months; above 500,000, it shoots up to over six months. Knowing these numbers is great for keeping track of the pace of the market in your price point.
Now remember, the information available online is usually about six weeks behind what the market is currently doing. The reason being is that many homes average between 30 and 60 days in the pending phase prior to actually closing.
Now, there are some other ways that we can monitor market activity. For example, I am the owner of one of Rochester’s top home search sites, RochesterAreaHomeFinder.com, and we can track the number of online shoppers registering to search homes and their activities at each price point.
Also, I’m a full-time experienced realtor. I have the advantage of a feet on the street perspective of the number of new buyers and sellers entering the market, and regularly following and participating in the trends for home showings, and have my finger on the pulse of what’s changing in the market from day-to-day and week-to-week.
This is Alex Mayer with Counselor Realty, Buy and Sell Strategically.