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Match Day for Medical Students matching into Residency Programs is just 44 days away!  Thursday, March 15th is the big day this year.  If you are looking for a Realtor with years of experience working with Mayo Clinic Residents on post Match Day home hunting, you have come to the right place.  I would be happy to provide anyone interested a list of References of previous Residents I've worked with.  I always try to take the long view when helping a newly matched Resident house hunt here in Rochester, MN. 

Having been married to a Mayo Resident and now a Mayo Clinic Fellow since April 2005, I have had a chance to observe up close the unique challenges this job can present.  I've also done exit interviews after the closing with my clients to learn about how their home is meeting their needs.  Another added bonus for working with me and my years of experience in this field is that we at Century 21 do not charge a Broker Administrative fee for helping you find a home.  All of our fees are paid by the seller.  Not every Broker in Rochester can say that.  Many charge fees up to $398 for you have the privilege of working with them.     

I look forward to working with you on your post Resident Match home search.  it is never too early for questions.  Feel free to contact me whenever! 

Bryan Busse, Realtor
Century 21 Alpha Realty
(507) 202-0995
bryan@olmstedproperties.com

Here are the Numbers for Month Ending December 31st, 2012 (except where noted below).  Sales were identical to one year ago.  Average prices are down due to more lower priced Foreclosure listings on the market and selling in December of this year.  I look for the average home price to equalize in the coming months as the weather warms up, the days are longer, and more non-foreclosure buyers flood the market. 

Home Sales Rochester, MN:
December 2011 - 105
December 2010 - 105

Average Home Sale Price Rochester, MN:
December 2011 - $144,622.60
December 2010 - $174,974.87

Monthly Absorption Rate Rochester, MN:
December 2011 – 5.94 Months
December 2010 – 7.52 Months

Rochester, MN Area Home Interest Rates as of January 2012:
Conventional 30 Year Fixed – 3.875%; no change from last month
Conventional 15 Year Fixed – 3.275%; up from last month
FHA/DVA 30 Year Fixed – 3.875 %; no change from last month
USDA Rural Development – 3.75 no change from last month

Affordability Index Nationwide as of 11/30/2011:
November 2011: Median Sales Price = $164,100; Interest Rate = 4.33%; Monthly Payment = $652.00; Payment as % of Total Income =12.90%.

November 2010: Median Sales Price = $170,900; Interest Rate = 4.54 %; Monthly Payment = $696.00; Payment as % of Total Income =13.80%.

In just 64 short days, Resident Match Day will be here for 2012!  For those Medical School Students that Match in Rochester, MN at the Mayo Clinic, the road map below can help guide you through the process of purchasing a home before you start Residency in late June 2012.  Please feel free to contact me whenever at (507) 202-0995 or bryan@olmstedproperties.com

Once we have confirmation of a Match, here is the road map that we will follow to get you more information and eventually into your new home in plenty of time before you start your new assignment here in Rochester at the end of June of 2012:

1. I will get you into contact with Lenders that have plenty of prior work experience with newly matching Mayo Residents and Fellows. Our goal will be to secure a pre-approval letter from the lender in a short period of time. The pre-approval letter is necessary to submit offers on properties of interest.
2. Next, we will online computer search the Rochester area and begin to compile a list of homes based on the dollar amount that you qualify for as well as the home amenities you are interested in. If you prefer to search the listings via your smart phone, click here for a free search app. Compiling your home list is easier with our optional registration feature that allows you to - save your search criteria and receive automatic emails notifying you of new listings that match your search. Also, mark listings as Favorites and be notified of any changes to these listings. As a bonus feature you can view more listing details than what is shown to unregistered users.
3. We will schedule a time for you to come to Rochester and visit the homes you have compiled during the online search phase of the process.
4. After touring several homes of interest, we will narrow the list down to one and write an offer and begin the negotiating process.
5. Upon acceptance of your offer, we will schedule a home inspection of the subject property. Inspection usually takes place within 5 days of offer acceptance. You do not need to be present for the inspection. The Inspector will send your report via mail or Internet and discuss results over the phone with you.
6. Upon satisfactory inspection, we will begin working with the Title Company/Real Estate Attorney's office on a Closing Date and Time. Usually, this takes place 2-4 weeks before the start of Residency.
7. On the date of closing, I will attend the closing with you and give you the keys to your new place at the conclusion! Time to start unpacking and enjoying your new home!!

The home at 1175 Riverwood Dr SW in Oronoco is for sale.  This home boasts the best price per square foot in the area.  Over 4,100 square feet of living space as well as a nice three car garage.  We've also received an estimate on making the Lower Level Family Room larger and more inviting for entertaining guests.  The large upper level loft and 1 acre heavily wooded lot make this home a must see.  Check out the home in the link below.  

http://www.photoshow.com/watch/bJ8dM4nI

Here are the Numbers for Month Ending November 30th, 2011

Home Sales Rochester, MN:
November 2011 - 111
November 2010 - 101

Average Home Sale Price Rochester, MN:
November 2011 - $165,436.59
November 2010 - $185,715.02

Monthly Absorption Rate Rochester, MN:
November 2011 – 6.00 Months
November 2010 – 7.87 Months

Rochester, MN Area Home Interest Rates as of November 2011:
Conventional 30 Year Fixed – 3.875%; up from last month
Conventional 15 Year Fixed – 3.25%; up from last month
FHA/DVA 30 Year Fixed – 3.875 %; up from last month
MN Housing First Time Homebuyer – 3.875%; up from last month

Affordability Index Nationwide:
October 2011: Median Sales Price = $161,600; Interest Rate = 4.32%; Monthly Payment = $641.00; Payment as % of Total Income =12.60%.

October 2010: Median Sales Price = $171,500; Interest Rate = 4.62 %; Monthly Payment = $705.00; Payment as % of Total Income =14.00%.

The numbers show some promise for our area.  Home sales and prices are up from this point in 2010.  Also, absorption rate is down from where it was a year ago as well! 

Home Sales Rochester, MN:
October 2011 - 116
October 2010 - 108

Average Home Sale Price Rochester, MN:
October 2011 - $178,531.00
October 2010 - $172,434.00

Monthly Absorption Rate Rochester, MN:
October 2011 – 6.48 Months
October 2010 – 8.27 Months

Rochester, MN Area Home Interest Rates as of October 2011:
Conventional 30 Year Fixed – 3.875%; up from last month
Conventional 15 Year Fixed – 3.125%; up from last month
FHA/DVA 30 Year Fixed – 3.75 %; unchanged
MN Housing First Time Homebuyer – 3.625%; unchanged
FHA 5-1 Adjustable Rate Mortgage – 2.25%; down from last month

Affordability Index Nationwide:
September 2011: Median Sales Price = $165,600; Interest Rate = 4.51%; Monthly Payment = $672.00; Payment as % of Total Income =13.10%.

September 2010: Median Sales Price = $172,400; Interest Rate = 4.68 %; Monthly Payment = $714.00; Payment as % of Total Income =14.00%.

I've done a recent data anaylsis on homes that have sold in the Rochester area the last 60 days.  Homes priced right up front sell quicker and for more money than homes that sit on the market.  Here is a breakdown of the sales and percentage of the original List Price that they sold for. 

1-44 Days on the Market sell for 97.68% of List Price

45-124 Days on the Market sell for 91.23% of List Price

125 Days on the Market and Up sell for 85.16% of List Price

I studied appoximately 100 homes in each bracket above and will continue to study the numbers each month.  The bottom line is that homes that are priced at Market Value tend to sell quicker and for more money than homes that linger on the market with few showings and no offers.  The sign of a home priced right is frequent showings and some hint that an offer might coming. 

As you come for Residency interviews at Mayo Clinic in preparation for the March 15th, 2012 Match Day, please consider sending me a note or giving me a call about living in Rochester and the types of homes that are available for a first year Resident.  One criteria that you might want to consider in your final rankings is the quality and availability of affordable housing in the city that you will do your Residency in. 

Rochester has no shortage of quality and affordable homes along the lines of townhomes/condominiums and single family homes.  I would be more than happy to show you a home or two during your Interview stay that might meet your living in Rochester needs should you match here early next year for the 2012-13 academic year.  Since 2008, I've helped many Residents buy and sell homes in the Rochester area.  I'm also married to a Mayo Clinic Fellow and have insight on the demands of the job.  I've also done a good job of following up with my previous buyers to find out how the homes they've bought have met their needs during Residency.  

Please feel free to e-mail me at:  bryan@olmstedproperties.com or call/text me at (507) 202-0995 to discuss living in Rochester, MN during Residency at Mayo Clinic.   

The five numbers that every home buyer or seller should be aware of are: Prices, Sales Volume, Inventory, Interest Rates, and Affordability.  Having a pulse of these five statistics will help keep you "in the zone" so to speak.  Let's take a close look at the most recent stats for these five areas for the Rochester, MN area. Local Statistics are from September 2011 unless noted otherwise.


Home Sales Rochester, MN:
September 2011 - 127
September 2010 - 116

Average Home Sale Price Rochester, MN:
September 2011 - $173,412.00
September 2010 - $184,892.00

Monthly Absorption Rate Rochester, MN:
September 2011 – 6.82 Months
September 2010 – 8.78 Months

Rochester, MN Area Home Interest Rates as of October 2011:
Conventional 30 Year Fixed – 3.875%; up from last month
Conventional 15 Year Fixed – 3.125%; up from last month
FHA/DVA 30 Year Fixed – 3.75 %; unchanged
MN Housing First Time Homebuyer – 3.625%; unchanged
FHA 5-1 Adjustable Rate Mortgage – 2.25%; down from last month

Affordability Index Nationwide:
August 2011: Median Sales Price = $168,400; Interest Rate = 4.69%; Monthly Payment = $698.00; Payment as % of Total Income =13.60%.

August 2010: Median Sales Price = $178,100; Interest Rate = 4.76 %; Monthly Payment = $744.00; Payment as % of Total Income =14.60%.

The NATIONAL ASSOCIATION OF REALTORS® affordability index measures whether or not a typical family could qualify for a mortgage loan on a typical home. A typical home is defined as the national median-priced, existing single-family home as calculated by NAR. The typical family is defined as one earning the median family income as reported by the U.S. Bureau of the Census. The prevailing mortgage interest rate is the effective rate on loans closed on existing homes from the Federal Housing Finance Board and HSH Associates, Butler, N.J. These components are used to determine if the median income family can qualify for a mortgage on a typical home.

To interpret the indices, a value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment. For example, a composite HAI of 120.0 means a family earning the median family income has 120% of the income necessary to qualify for a conventional loan covering 80 percent of a median-priced existing single-family home. An increase in the HAI, then, shows that this family is more able to afford the median priced home.  The current composite HAI for August 2011 nationwide is a very favorable 183.70. 

The calculation assumes a down payment of 20 percent of the home price and it assumes a qualifying ratio of 25 percent. That means the monthly Principal and Interest payment cannot exceed 25 percent of a the median family monthly income.