Wednesday, January 31, 2018

Rochester Home Prices Reach New Peak in 2017

Inventories Critically Low

Home prices in the Rochester market reached a new annual peak price in 2017, rising to an average of $102,482, up 8.5 percent from 2016 and higher than peak prices attained during the housing boom ten years ago. Though prices slumped during the holiday season, falling to $101,468 in the fourth quarter, a strong spring and summer sales season set the pace for the new peak annual price.
Rising prices were helped by critically low inventories of homes for sale in the Rochester market. Supplies of active listings fell from 874 in December 2017 to just 442 listings in the fourth quarter. Inventories trailed 2016 by 45 percent and was about a third of the size of active listings in December 2015, according to the HUNT Real Estate ERA Market Report.
Demand was modest throughout 2017, and sales ended the year less than 1 percent higher than in 2016. Homes sold much more slowly in the fourth quarter as temperatures dropped. As demand slowed, the time it took to sell a home in the Rochester market increased to an average of 56 days.
Sales improved in the fourth quarter as sellers became more willing to negotiate on price.  Sellers’ ratio of list to sale price fell from over 100 percent in September to 93.5 percent in December. The stronger sales that resulted pushed fourth quarter sales 7 percent higher in 2017 than they were in 2016. 
“Rochester’s prices are reaching new peaks as demand grows. Though supplies are low, buyers can find bargains in today’s market. In 2018, sellers will find conditions to be ideal as prices are expected to continue to rise during the the year,” said Peter F. Hunt, Chairman and CEO of HUNT Real Estate Corporation.

Rochester home prices reached a new peak in 2017.

Source: NYSMLS Matrix

The HUNT Market Report is a quarterly analysis of real estate trends in Western New York designed to help real estate consumers keep up with local market trends. Reports are based on HUNT Real Estate’s analysis of multiple listing service data.