Monday, April 23, 2018

Rochester Home Prices Decline as Inventories Shrink

Average Price Fell 8 Percent in First Quarter
The first quarter of 2018 saw prices of Rochester homes decrease by 8 percent as fewer than half as many homes were listed for sale compared to last year. Sales, however, improved by 8.6 percent over the 12 month period, according to the first quarter market report from HUNT Real Estate.
Inventories in Rochester are continuing to fall and fewer owners are listing their homes for sale as the spring selling season begins. Active listings of homes for sale have declined by 61 percent since the fourth quarter of 2017 and new listings are also down by 6.3 percent since last year at this time.
The city’s average home price declined 8 percent to $74,432 - down from $80,938 in the first quarter of 2017. Strong demand cut the average period for houses to sell in the city to 30 days, a 31 percent decline over the year. Stable prices encouraged buyers and sales increased over the first quarter of 2017, but they fell 28 percent from the fourth quarter of 2017 when buyers and sellers rushed to close sales before the year ended.
Shrinking supplies have resulted in homes in Rochester being slightly less affordable than they were a year ago. Rochester’s affordability rating on the National Association of Realtors’ Affordability Index fell 2.9 points in the past year. However, the Rochester market is still more affordable than most of the top 100 markets in the nation, according to the NAR report.
In Monroe County, supplies of homes for sale dropped 54 percent over the past year. Prices of homes in Monroe County have increased slightly by 2.5 percent, making the average sale price $149,603. Homes spent an average of 39 days on the market, down from 49 days compared to the first quarter of 2017.
Neighboring cities and suburbs also experienced declines in inventory. Parma had 17 percent fewer listings in the first quarter of 2018 than the first quarter of 2017. The average sale price in Parma increased less than 2 percent to $179,268. Sales rose 12 percent over the past year.
In Brighton, listings have decreased by 33 percent since the first quarter of last year. In that same timeframe, prices of homes have increased by 25 percent. In Irondequoit, prices have risen 12 percent and inventories have gone down 33 percent over the last year.  
We expect demand to grow stronger in the Rochester market as the spring sales market takes off. Tight supplies and strong demand will raise prices, making 2018 a great year to sell. Buyers, who face rising mortgage rates as well as rising prices, are well advised to move quickly this spring,” said Peter F. Hunt, Chairman & CEO of HUNT Real Estate Corp.

Rochester Active Listings

January 2017 through March 2018