There’s no question the Rochester, Minnesota real estate market was incredibly active during 2015. And predictions – nationally – are for an even more active 2016.
The biggest challenge right now is lack of inventory – it is historically low. Home inventory levels are reported by a statistic referred to as Absorption Rate. The Absorption Rate is the number of months the current inventory of homes would last – if no other homes came on the market.
A healthy balanced market has a five to six month Absorption Rate. A buyer’s market as more than six months of inventory and a seller’s market has less than six months. As you can see from the stats below – we are definitely in a seller’s market.
Call me if you have questions.