Throughout the country with Rochester, NY included, home sales are declining. Closing in on a 3 year low, Rochester, NY home sales continue to lag questioning if a home recession or even, dare it be said, another housing crisis are on the horizon. The signals are out for one though…
U.S new house median prices fell 3.1% in October to a price of $309,700. Will this continue to happen, thus, driving the price of new homes into the ground over time? Some home investors and flippers (a good source to gauge the sentiment of the housing market) out there have a more calm and conservative opinion:
“Interest rates are going to be the biggest factor for Real Estate in the coming few years. In Real Estate, we tend to see a lag in inventory as builders/developers start projects about 6-18 months prior to putting them on the market. So as interest rates rise, we’ll continue to see more homes coming on the market from projects started in the beginning of the year – and that’ll put some downward pressure on prices for buyers. Long term, it won’t make a difference – as a buyer, lock in a low interest rate loan for 30 years. As a seller, price it aggressively ahead of the market. And just as an FYI, we generally see a decline in home prices/sales at the end of the year around the holidays. Things typically pick up around March-April.” -Graham Stephan
Graham Stephan is a 27 year old real estate agent and investor who started working in real estate shortly after turning 18, with over $120,000,000 in residential real estate sales since 2008. It is fair to say that he has skin in the game and is quite familiar with the housing market.
So what does this all mean? It means we can quote the hit HBO show Game of Thrones and say that “Winter is here” when it comes to the real estate market in Rochester. The red-hot market earlier this year is most certaintly taking a breather.
“We’re seeing a shift in the market,” said Angie Flack Brown of Keller Williams. “The multiple-offer situations just are not as common anymore, Brown said. Buyers are more prudent and carefully thinking things over and not rushing into a bidding war.”
Regardless of the sentiment, commercial real estate is booming in Rochester, NY