Rochester MN Real Estate Market Blog

The Rochester Minnesota area residential real estate market started picking up steam last week with nearly twice as many new listings as the previous week. There were 36 new residential listings last week (January 20-26, 2012) with an average asking price of $225,959. With new listings outpacing those going under contract, residential housing inventory increased slightly week over week with 600 homes currently for sale in the Rochester, Minnesota area. These homes have an average asking price of $207,732 and an average of 182 days on the market.

Last week there were 28 homes that went under contract. The average asking price for these homes was $170,695; average market time was 105 days.  Average sold price for the 18 homes that closed last week was $157,636, just 88.3% of the original listing price. The selling price for these homes was within 3% of the asking price when they sold. Average time on the market for last week’s closings was 201 days.

While the number of new and pending listings are down more than 10% from the same time a year ago, the increase in activity is a positive sign as we head into the spring market.

To view this past week’s area real estate activity, click here for new listings and click here for pended listings.

Shawn Buryska, Coldwell Banker Burnet Realty, Licensed in the state of Minnesota

Signed contracts outpaced new listings last week, contributing to the continued reduction in housing inventory available for sale.  Last week’s 20 new residential listings had an average asking price of $229,627. The 25 homes that went under contract  last week (January 13-19, 2012) represented an increase of more than 70% over the same time period a year ago and averaged 173 days on the market with an average list price of $182,440.

There were 17 closings last week, almost twice as many as a year earlier. The average sold price for these homes was $167,973. With an average market time of 203 days and the average selling price at 95.8% of the asking price and 86.0% of the original list price, proper pricing is still incredibly important to finding the right buyer.

There are currently 590 active residential listings in Rochester, Minnesota with an average asking price of $205,717 and an average of 184 days on the market.

To view this past week’s area real estate activity, click here for new listings and click here for pended listings.

Shawn Buryska, Coldwell Banker Burnet Realty, Licensed in the state of Minnesota

I’ve taken a new listing at 1663 9^th Ave SE Rochester, MN 55904.  It is a 3 bedroom, 2 bath split in Meadow Park.  The listing number is 4034193.  You can find all the details here.

I’ve taken a new listing at 5843 Kingsbury Dr NW Rochester, MN 55901.  It is a 4 bedroom, 2 bath walkout split in Kingsbury Hills.  The listing number is 4034307.  You can find all the details here.

I’ve taken a new listing at 708 18^th Ave NE Rochester, MN 55906.  It is a 3 bedroom, 1 bath ranch in Sauer’s.  The listing number is 4034306.  You can find all the details here.

Between economic woes and the housing bubble burst, home buyers have appeared to have the upper hand in the real estate market for several years now. With fewer active buyers, more homes for sale, tighter lending restrictions, and falling home prices, sellers were at a clear disadvantage.

The big question is – is the buyer’s market over? Signs point towards yes. Very low listing inventory levels and increased buyer demand, combined with sellers’ unwillingness, and inability, to let prices go much lower, are shifting the balance of power back away from buyers.

For years, the homes that were listed for sale were by those that either had to sell or could afford to lose some of the equity in their homes. Of course there were also those that entered the market hoping for interest at their asking price, rather than pricing at the true market level. Needless to say, the majority of those homes languished on the market.

Regardless, as housing prices continued to drop, lost equity and lost income prohibited home owners from entering the market to move or to move up. Lost confidence in the economic market also contributed to the housing status quo.

In recent months we’ve seen increased buyer demand as consumer confidence begins to build again. Mortgage interest rates have continued to break records reaching lows unimaginable just a few years ago, potentially putting home ownership within reach of a broader pool of buyers, especially in light of tighter lending practices. According to MSN Real Estate there are also more cash buyers, putting mortgage-backed buyers at a disadvantage. Wherever they come from, more buyers means more competition. And a growing buyer pool with a shrinking seller pool means the balance of power continues to shift.

At the same time, home sellers are drawing a line in the sand. For those with mortgages (which is almost everyone), there is only so low the selling price can go without bank cooperation, as in the case of a short sale. Unless one must sell, there is little incentive for home owners to list at all, let alone lose money on the deal. Sellers must protect whatever remaining equity they have. Seller reticence has certainly lessened buyer power in real estate transactions, but at the end of the day, there still must be a buyer willing to pay what a seller is willing to accept for a sale to take place.

Regardless of whether the market favors sellers or buyers, the homes that sell are the ones that are the most desirable – those with the best condition, in the best location, with the best price. It pays to understand the market – where the buyers are, what interests them, and what they need to close the deal.

If you’re considering buying or selling, give us a call. We know what’s selling, we know who’s looking, and we can help you get your best deal.

Shawn Buryska ABR, CRS, GRI
Coldwell Banker Burnet Realty
507-252-6745
www.ShawnBuryska.com

Shawn Buryska, Coldwell Banker Burnet Realty, Licensed in the state of Minnesota

The Rochester, Minnesota housing market may have slowed way down in December, 2011, but overall the market improved over 2010. There were 9.9% more signed contracts and 6.5% more closings in 2011, an impressive sign given the absence of the Homeowner’s Tax Credit that boosted real estate activity in 2009 and 2010.  Another positive sign – although the average selling price in 2011 was 1.6% lower than in 2010, the total volume of homes sold increased 8% year over year.

New listings (75) in December, 2011 were down by a third from the previous month and more than 16% over last December. Signed contracts (94) were also down from the previous month, but were up more than a third from the last month of 2010. Average market time in December reached 177 days, the longest we’ve seen in more than a decade.

Active listings have dipped below the 600 mark, a 40% drop from a year ago. We’ll be watching to see how the market heats up as we head into the spring selling season.

For the latest in local real estate stats make sure to check out http://www.shawnburyska.com/real-estate-statistics.php

Shawn Buryska ABR, CRS, GRI
Coldwell Banker Burnet Realty
507-252-6745
www.ShawnBuryska.com

It’s a new year and we’re heading into the spring market, typically the hottest selling time of the year. Early signs point towards the market heading in the right direction, with 30 new listings last week (January 6 to 12, 2012) and 25 signed contracts.

Last week’s new residential listings had an average asking price of $174,768. The homes that went under contract  last week averaged 139 days on the market and had an average list price of $183,396.

While the number of signed contracts was up almost 25% compared to a year ago, the total number of active listings was down fully one-fourth from last year. On the other hand, the ten homes that sold last week had an average sold price of $197,838, 89% of the asking price and just 79% of the original list price. These homes averaged 187 days on the market.

There are currently 607 active residential listings in Rochester, Minnesota with an average asking price of $203,757and an average of 182 days on the market.

My website has just been updated with the latest market information and year-end statistics.  To view this past week’s area real estate activity, click here for new listings and click here for pended listings.

Shawn Buryska, Coldwell Banker Burnet Realty, Licensed in the state of Minnesota

 I’ve taken a new listing at 1105 Grey Fox Ave SW Rochester, MN 55902.  It is a 4 bedroom, 3 bath ranch in Fox Hill.  The listing number is 4033799.  You can find all the details here.

 I’ve taken a new listing at 11731 10^th St SW Byron, MN 55920.  It is a 4 bedroom, 4 bath two story.  The listing number is 4033409.  You can find all the details here.