In Under 2 Years, Home Prices May Not Be Affordable in Rochester
It's no surprise that home prices continue to rise here in southeast Minnesota, and that's a good thing, isn't it? Well, maybe not.
If you're a current homeowner here in Rah-Rah-Rochester, rising home prices are a good thing-- for the most part. It means, of course, that you'll no doubt be able to sell your current home, depending on when you bought it, for way more than the amount you paid when you purchased it. (Of course, as your home's value increases, it also means you'll be paying more in property taxes. Oy!)
But when home prices rise too much, too fast, it can cause other problems, as well. This GoBankingRates survey summed it up, saying "Rising home values can quickly transition a reasonable housing market into the type of real estate monster that has consumed places like the San Francisco Bay Area, Los Angeles and New York."
Specifically, their list of 32 cities where home prices are in danger of not being affordable in the near future included our fair city of Rochester at number 19. It said our average home price in 2019 is $228,500 with a projected growth rate of 3.43%. This means that by 2021, home prices here could hit $244,466. That would be more than the projected U.S. median home price of $244,212, which would then make Rochester no longer 'affordable'.
GoBankingRates suggests that, if you're looking to purchase a home here, it might be better to do it sooner rather than later-- before our prices outpace the national average for growth. You can read more about their list, and how they came up with those numbers, HERE.