Rochester, MN (KROC-AM News) - The real estate market in southeastern Minnesota continues to be driven by demand outstripping the supply of homes for sale. The monthly report issued by the Southeastern Minnesota Realtors shows existing home sales were limited by a shrinking inventory of homes, which continues to push home prices higher.

Across the region, the number of closings on sales of existing homes dropped 12.5-percent last month when compared to February of last year. Pending sales were down about 1-percent, while the number of new listings of homes for sale shrank almost 22.5-percent. The seller’s market condition pushed the median sales price up 14.7-percent from a year ago to over $184,000.

The statistics for Rochester show the number of closings this year are up slightly from the first two months of 2017, while the median sales price has risen over 17-percent to $223,000. Last month, there were only about 223 homes listed for sale in Rochester, which was down about 12-percent from a year ago.