Minnesota Housing Outlook – Looking Back and Looking Ahead

From home ownership trends to predictions regarding future home prices, Rochester, Minnesota appears to be holding its own.

The 2010 Census information is beginning to be released and, according to 24/7 Wall Street’s analysis of the data, Minnesota has the 2nd highest percent of home ownership (73%), second only to West Virginia. This analysis points towards home ownership being higher in states that have lower home prices and a lower population density. Minnesota’s median home value was $200,400 according to the 2010 Census, ranking 20th among all states. Minnesota’s population in 2010 was 5,310,584.

Nationally, home ownership was at 65.1% in April 2010, down 1.1 percentage points from a decade earlier, but a drop of more than 4 points from the middle of the decade, according to CNNMoney. This represented the biggest negative change since the 1930s when home ownership dropped 4.2%.

According to CNNMoney.com, median home prices are expected to continue falling, with a drop of another 3.6% expected by the end of June 2012.  The Rochester area housing market saw a 2% drop in home prices from the second quarter of 2010 through the second quarter of 2011. In the last 20 years, according to Fiserv, the worst one year price change in Rochester, Minnesota came in the first quarter of 2008 when median home prices dropped 5.9%. On a positive note, the forecast change in housing prices from the second quarter of 2011 through the second quarter of 2012 is expected to be a drop of just 1%, with an increase of 1.3% in the twelve months following that.

If you have any questions, please don’t hesitate to contact me. As always, I am working to make your home buying and selling a rewarding experience.

Shawn Buryska, ABR, CRS, GRI
Coldwell Banker Realty
507-252-6745 – Direct
507-254-7425 – Mobile
507-252-6845 – Fax

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

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