2016 was a great year for the real estate industry in Rochester, Minnesota and the surrounding area. Economic indicators such as the 2.7% unemployment rate, combined with historically low interest rates, lit a match under the housing market and created a busy year for those buying, selling, and moving within the region.
As the year comes to a close, housing experts look to 2017 to forecast regional trends and housing market analysis. They expect 2017 to once again be a great year for real estate; especially for those selling their home.
Regional Trend: A High Influx of Buyers
The biggest regional trend in 2017 is the high influx of home buyers in Rochester, Minnesota and the surrounding area. Between DMC expansion plans and the high number of jobs brought to the area by Mayo Clinic, there is a constant stream of buyers. This constant stream of buyers doesn’t always match up with housing availability. That margin is the difference for 2017.
Trends indicate that 2017 will see a slightly larger margin between buyers and available homes on the market. According to the Southeastern Minnesota Association of REALTORS® (SEMR), an association that compiles housing trends and market analysis across the region, inventory levels declined by close to 26% between November of 2015 and November of 2016.
What does this mean for those selling their home in the area? A constant demand is a simple economic equation and usually indicates sellers will get the highest return on their investments.
Capitalize on your Investments
Selling your home in 2017 is also a smart move from an investment standpoint.
Housing prices have increased significantly and will continue to rise. Simply comparing the price you bought the home for to your home’s current appraisal is only scratching the surface. Not only have property values naturally increased, any updates, renovations, or simple home improvements should receive an exponential return.
For example, if you renovated a bathroom, put in hardwood flooring, or even just painted your home from top to bottom, the cost of those home improvements have not increased at nearly the same rate as the high percentage increase of home values in the past few years.
The Bottom Line
The forecast for real estate in 2017 continues to be hot, especially for those selling their home. Due to a higher rate of incoming buyers compared to a lower inventory level, 2017 is a smart time to sell your home and receive the most return on your investment.
For more insights into the 2017 Rochester, Minnesota and surrounding area housing market, download the complete Guide to Real Estate in 2017 and find more answers for why 2017 is the year to move!