NEW YORK - As the demand for housing in Rochester continues to grow, there's also a growing shortage of homes on the market. With a low supply, prices are already rising. As a result, the median price for a home in the Rochester region rose by more than 10% year-over-year in November. As a result, there are multiple offers on many homes.
This low housing inventory is one of the biggest factors contributing to the deterioration of the Rochester real estate market. It's also the main factor in homebuyer preferences, as people opt to rent instead of buy. In the past, it took 12 days for a home in Rochester to sell, but the median time to sell is now less than ten days. Because of the low inventory, local real estate agents don't see much hope for the housing market in Rochester.
Rochester is one of the largest cities in the state, and various industries drive its economy. There are many historical buildings and renovation projects in the downtown area. The city is also home to pioneers like Susan B. Anthony and independent thinkers like Frederick Douglass. The city also has an extensive cultural scene, including the Eastman School of Music and the Susan B. Anthony House. Rochester's city parks and recreation system total 3,500 acres.
The price of a home in Rochester is still below the national average of $426,000. Moreover, the pace of new housing construction has slowed, with the Census Bureau reporting a decline of 1.45 million residential housing starts in July. Further, the National Association of Home Builders reported that builder confidence declined for the ninth consecutive month in September. This has a direct effect on housing prices in Rochester.
The Brighton real estate market is one of the most active in the Greater Rochester area. With a low housing inventory, the market is a seller's market. In September 2015, the absorption rate for homes in Brighton was 2.5 percent, which indicates that the market is in a seller's favor. As a result, most of the homes in Brighton are in the $150,000-$200,000 price range. Those looking for a home in Brighton may also want to check out the Ellison Park Heights neighborhood.
Fannie Mae predicts that home prices will continue to rise slower. During the second quarter of 2023, year-over-year home inflation will drop to 4.4%. By the end of the year, it will drop to 2.9%. This is still half the pace of the pre-pandemic years. This could be good news for buyers and sellers alike.
As the economy recovers, more sellers are listing their homes for sale. Rising interest rates may be one of the factors that contribute to this trend. However, rising rates do not necessarily slow down housing demand, especially in New York City.
