Rochester MN Real Estate Market Blog

In Rochester, Minnesota there are currently 1169 residential listings with an average list price of $236,425 and 156 days on the market.

Last week (May 5 to 11, 2008) 62 homes went to pending (under contract).  The average list price for these homes was $206,868 and average market time was 115 days.  There were also 62 new listings (average list price $220,427) and 24 that came back onto the market ($246,818 avg. list price).

There were 23 homes sold last week.  The average sold price of $197,786 was 97.86% of asking price, 93.23% of original list price.

Last week 26 listings canceled, 11 expired and one was withdrawn.

There are currently 1172 residential properties for sale in Rochester, Minnesota with an average list price of $234,262 and 156 days on the market.

Last week, April 28 to May 4, 2008, there were 1223 homes for sale; average list price of these properties was $234,715 with an average market time of 158 days.

There were 67 new listings last week (average list price of $197,670) and 12 listings that came back onto the market ($141,403 average list price and 156 days on the market).  One listing was withdrawn, fifteen canceled, and eighteen expired.

Last week 64 homes went under contract (to pending).  The average list price was $209,452, average market time was 131 days.  There were 71 closings last week with an average sold price of $170,805, 98% of the list price and 94% of the original list price.  Average market time for the homes that sold last week was 117 days.

The Federal Reserve has cut interest rates by one-quarter of a percentage point yesterday, in what many economists are predicting might be the last such cut by the Federal Reserve for a while. It is the seventh cut since late August, and it comes as the Fed is trying to balance between fears of impending recession and signs of inflation. The Federal Reserve Funds are now at 2.00%, which means most banks will now be lowering their Prime Rate to around 5.00%

What does this mean for home buyers, home sellers and homes for sale in Rochester Minnesota?  Any time the Fed cuts rates it’s viewed as a positive move by the general public.  In actually however the Fed interest rates are not directly tied to mortgage rates.  Mortgage rates are tied to the 10 year treasury bill and influenced more by bond prices.  When the fed cuts their rate, it’s good news for the consumer as any consumer debt like car loans, and home equity lines of credit will usually adjust accordingly.  Bottom line it does make buying or selling a house a little easier as the home buyer has a little extra free cash to spend if they are not spending as much on other consumer debt.

There are currently 1205 homes for sale in Rochester, Minnesota, with an average list price of $236,663 and an average of 158 days on the market.

Last week (April 21 to April 27, 2008) 53 homes went under contract.  Average list price for those homes was $198,030, with an average market time of 105 days.  There were 57 new listings (average list price $236,686) and 11 homes that came back on the market (average of $275,727 and 226 days on the market).  Two listings expired; fourteen canceled.

The 31 homes that sold last week closed at 99.4% of the list price, 96.5% of the original list price.  The average sold price was $176,248; average number of days on the market was 93 days.

The Rochester Minnesota Real Estate market seems to have built a full head of steam going to April.  Sales are robust and there have even been several reports of multiple offers on some well price properties.  The Mayo Clinic match market is also well under way with medical students eager to graduate and start their residencies with the Mayo Clinic at the end of June.  These new residents have been coming to town every weekend since late March and will continue to do so for the next couple months seeking homes.  The good news is there is plenty of inventory and it’s still very much a buyer’s market for those seeking a good deal.

Inventory numbers are fairly steady compared to this time last year, and sales are down ever so slightly. Those lost sales may be made up when the April numbers are posted as the weather this past winter has had a lot to do with the real estate market getting a little slower start this year in Southeastern Minnesota. All looks well for the real estate market going into mid spring and early summer!

We didn’t see the broad swings in interest rates this week as were experience in weeks past.  With little new economic news for the week rates settled in for a slightly lower average then last week.

Ecnomic news was mixed for the week. The Fed is forecasting that with the recent rate cuts and the government stimulus packages will lead to faster economic growth for the remainder of the year. On the other side of the fence, the Pending Home Sales index fell more then expected in January and the index was down marginally from a year ago.  Pending Home Sales is the leading indicators for the future direction of the housing market and NAR (National Association of REALTORS) is predicting flat home sales for the next several months.

There are currently 1232 homes for sale in Rochester, Minnesota, with an average list price of $235,552 and an average of 155 days on the market.

Last week (March 31 to April 6, 2008) 46 homes went under contract.  Average list price for those homes was $166,823, with an average market time of 81 days.  There were 78 new listings (average list price $218,649) and 12 homes that came back on the market (average of $202,425 and 260 days on the market).  Twenty-one listings expired, eight canceled.

The 39 homes that sold last week closed at 98.1% of the list price, 93.8% of the original list price.  The average sold price was $159,900; average number of days on the market was 141 days.

WASHINGTON, D.C.

• Federal Reserve maps show key areas of concern

• What color is your state?

• Scroll down to the bottom for the website link

The Federal Reserve System now has a set of dynamic maps and data online that illustrate sub prime and alt-A mortgage loan conditions across the United States. The maps display regional variation in the condition of securitized, owner-occupied sub prime, and alt-A mortgage loans. The more intense the color, the bigger the problem or potential problem. Monthly updates are planned. The maps and data can be used to assist in the identification of existing and potential foreclosure hotspots, the Fed says. (Click on the link below to see the maps. Be advised that the site loads slowly, apparently affected by demand.)

The maps show the following information for sub prime and alt-A loans for each state and most of the counties and zip codes in the United States:

• Loans per 1,000 housing units

• Loans in foreclosure per 1,000 housing units

• Loans real estate owned (REO) per 1,000 housing units

• Share of loans that are adjustable rate mortgages (ARMs)

• Share of loans for which payments are current

• Share of loans that are 90-plus days delinquent

• Share of loans in foreclosure

• Median combined loan-to-value ratio (LTV) at origination

• Share of loans with low credit score (FICO) and high LTV at origination

• Share of loans with low- or no documentation

• Share of ARMs with initial reset in the next 12 months

• Share of loans with a late payment in the past 12 months

The maps are maintained by the Federal Reserve Bank of New York.

To access the data visit: http://www2.newyorkfed.org/mortgagemaps/

There were 1231 homes for sale last week in Rochester Minnesota, with an average list price of $231,205 and an average of 157 days on the market.  This includes 85 new listings (average list price of $198,308) and 17 listings coming back on the market (average list price of $211,494 and 249 days on the market). 

Last week 58 listings went to pending (under contract); average list price was $206,284 and average of 125 days on the market.  Thirty-four homes sold, with selling price 90.74% of the list price ($221,196 and $243,775 respectively).

 There are currently 1200 homes for sale.  The average list price for these properties is $233,284; average market time is 158 days.

After two weeks of nice declines, mortgage rates rose during the week, back to the levels seen at the end of February. March was an extremely volatile month, with large daily swings a common occurrence. Investors bought mortgage backed securities during periods of increased concern about the stability of the credit markets. Just as quickly, they sold mortgage backed securities when the fears eased. Last week, investors generally felt that the Fed’s rate cuts and other actions were sufficient to combat the difficulties in credit markets, demand for mortgage investments fell, and mortgage rates rose. Mortgage rates were also hurt last week by a series of Fed officials who talked tough about inflation. Higher inflation is bad news for mortgage markets, as investors require a higher yield to offset the inflation. With all the attention on inflation, Friday’s release of the Fed’s preferred inflation indicator was highly anticipated. The February Core PCE price index rose at a 2.0% annual rate, as expected, which was at the upper boundary of the Fed’s perceived comfort zone. In the housing sector, the news was somewhat encouraging. February Existing Home Sales came in stronger than expected. The inventory of unsold homes declined modestly, while median prices fell. Sales activity has held in a narrow range since September, and the chief economist of the National Association of Realtors (NAR) suggested that the data was “another sign that the market is stabilizing”. February New Home Sales also came in a little higher than the consensus. Separately, the government’s OFHEO housing index showed that January prices were down 3% from one year earlier.