West/Northwest Rochester – October 2015 – Real Estate Market Trends

Dave Meir
Published on November 9, 2015

West/Northwest Rochester – October 2015 – Real Estate Market Trends

If you’re thinking of buying or selling a home in the next few months then you’ll want to stay apprised of the current market trends that can affect home sales. In this West/Northwest Rochester Home Sales Report you’ll see what’s going on in the west/northwest Rochester, Minnesota residential housing market.

Oct_MarketReport

This report details market activity for single family home sales in west/northwest Rochester. West/northwest is the area of Rochester lying east of Highway #52/#63; north of Country Club Road; east of 60th Avenue NW and south of 65th Street NW.

In particular it includes the following subdivisions/areas;

  • Country Club Manor area
  • Badger Hills area
  • Sunset Terrace area
  • Northgate area
  • Lincolnshire area
  • Golfview area
  • Kingsbury Hills and Wedgewood Hills area
  • Ridgeview Manor area
  • North Park area

The West/Northwest Rochester Home Sales Report tracks and compares;

  • Median Sales Price: The middle – half of the homes sold in the area sold for less and half sold for more than this price.
  • Average Sales Price: The numerical average of all homes sold in this area in a specific time period.
  • Absorption Rate: The number of months the current housing inventory would last if no other homes came on the market. A seller’s market is typically defined by an absorption rate of less than six months; a stable market has an absorption rate of around six months; and it’s considered a buyer’s market when the absorption rate exceeds six months.
  • Average Days on Market: The numerical average number of days it took in that time period for homes to sell. Yes, you hear all the time of homes that sell in less than a week or a day. Keep in mind others are on the market for months. This is the average.
  • Number of Homes Sold: Total number of home sold in that time period. Good to track from month to month to gauge activity and to compare year to year.
  • Number of Active Listings: Ties to Absorption Rate. Knowing this number for your particular neighborhood gives you an idea of the competition in your area.
  • Number of New Listings: How many new homes came on the market in a specific time period.
  • % of Sale Price to Original List Price: Ties to days on market. If homes are on the market for an extended period their sale to original list price percentage will likely be lower.
Call, Text or Email if you want to know the absorption rates and trends for your specific neighborhood so you know how to position your west/northwest Rochester home sale.

West/Northwest Rochester Real Estate Market Summary for October 2015

Category Aug – 2015 Sep – 2015 Oct – 2015 Oct – 2014
Median Sale Price: $197,500 $182,500 $198,100 $181,000
Average Sale Price: $210,722 $202,542 $201,970 $186,703
Absorption Rate in Months: 1.51 1.77 1.63 3.09
Average Days on Market: 30 30 58 54
Number of Homes Sold: 57 39 33 47
Number of Active Listings: 84 98 90 131
Number of New Listings: 45 52 27 46
% of Sale to Original List Price: 99.4 98.3 98.5 95.9

 

What Does it All mean to You? Where is the West/Northwest Rochester Market Headed?

If you bought or sold a home in 2015 – especially in the early spring market – you already know 2015 was a banner year in Rochester.

In October of 2015 the average home selling price is up more than 7% over 2014 but down just a bit over 4% from August of this year.

But look at that Absorption Rate! In October of 2014 we had more than a three month supply of homes on the market while this year we have less than a two month supply. For sellers that’s fantastic news – definitely a sellers market and a great time – even with the Holidays fast approaching – to put your home on the market.

Conversely it’s not such great news for buyers. I’m currently searching for homes for several buyers in numerous different price ranges. It’s tough going.

The number of homes sold has declined steadily since August – due in part no doubt to the lack of inventory. This year compared to last? 30% more homes sold in October of 2014 compared to this year. And the number of new listings is down considerably as well; 27 new listings this October compared to 46 last October. More than a 40% decrease in new listings.

And finally percentage of original list price received at sale has remained in the high 90’s throughout 2015.

Remember you can Call, Text or Email me at anytime if you need more information about your specific neighborhood trends. Always happy to help.

If you’d like to see what the typical home looks like and sells for in eleven different west/northwest Rochester neighborhood check out this article.