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Rochester | March Real Estate Market Report

Monday, April 3, 2017   /   by Brian Ness

Rochester | March Real Estate Market Report

Rochester Market Report 

Lets take a look at the real estate market. Currently there are 340 sales pending in the market overall, leaving 301 listings still for sale. The resulting pending ratio is 53.0% (340 divided by 641). So you might be asking yourself, that's great... but what exactly does it mean? I'm glad you asked! 

The pending ratio indicates the supply & demand of the market. Specifically, a high ratio means that listings are in demand and quickly going to contract. Alternatively, a low ratio means there are not enough qualified buyers for the existing supply.

Taking a closer look, we notice that the $100K - $200K price range has a relatively large number of contracts pending sale.

We also notice that the $300K - $400K price range has a relatively large inventory of properties for sale at 66 listings. The median list price (or asking price) for all properties in this market is $338,375.

A total of 888 contracts have closed in the last 6 months with a median sold price of $202,500. Breaking it down, we notice that the $100K - $200K price range contains the highest number of sold listings.

Alternatively, a total of 40 listings have failed to sell in that same period of time. Listings may fail to sell for many reasons such as being priced too high, having been inadequately marketed, the property was in poor condition, or perhaps the owner had second thoughts about selling at this particular time. The $100K - $200K price range has the highest number of off-market listings at 9 properties.

Looking at the chart to the right, you might be wondering why average days on market (DOM) is important. This is a useful measurement because it can help us to determine whether we are in a buyer's market (indicated by high DOM), or a seller's market (indicated by low DOM). Active listings (properties for sale) have been on the market for a median time of 30 days. 

Analysis of sold properties for the last six months reveals a median sold price of $202,500 and 24 days on market. Notice that properties in the $800K - $900K price range have sold quickest over the last six months. 

MR-March2.png

The recent history of sales can be seen in the two charts below. The median sold price for the last 30 days was $224,500 with a DOM of 21 days. 

Since the recent DOM is less than the median DOM for the last 6 months, it is a positive indicator for demand. It is always important to realize that real estate markets can fluctuate due to many factors, including shifting interest rates, the economy, or seasonal changes. 

Ratios are simple ways to express the difference between two values such as list price and sold price. In our case, we typically use the list-to-sale ratio to determine the percentage of the final list price that the buyer ultimately paid. It is a very common method to help buyers decide how much to offer on a property. 

Analysis of the absorption rate indicates an inventory of 2.1 months based on the last 6 months of sales. This estimate is often used to determine how long it would take to sell off the current inventory of properties if all conditions remained the same. It is significant to mention that this estimate does not take into consideration any additional properties that will come onto the market in the future. 

MR-March3.png


  rochester market, report

Gwaltney Group of RE/MAX Results
Robin Gwaltney
4123 26th St. NW
Rochester, MN 55901
507-259-4926

The data relating to real estate for sale on this web site comes in part from the Broker ReciprocitySM Program of the Regional Multiple Listing Service of Minnesota, Inc. Real Estate listings held by brokerage firms other than are marked with the Broker ReciprocitySM logo or the Broker ReciprocitySM thumbnail logo (a little black house) and detailed information about them includes the name of the listing brokers.” Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items.” Copyright2020Regional Multiple Listing Service of Minnesota, Inc. All rights reserved. Data last updated September 29, 2020
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