NEW YORK - The Buffalo real estate market continues to boom, and there are no signs of slowing down anytime soon. The area's increasing population has increased the number of homes for sale and new construction projects, which is great news for Buffalo property buyers. With a strong economy, Buffalo real estate is also an excellent choice for short-term and long-term investments.
The Buffalo housing market is a seller's market, and the high demand has helped homes sell at higher prices than ever before. On average, homes in Buffalo spend just 21 days on the market, and inventory is down to about a month's worth of homes. However, the real estate market is volatile, and it is always best to have an open mind and be prepared for the unexpected.
Although the housing market has continued to rise, it is too hot to be sustainable. It is too stretched, and rising mortgage rates will likely crush affordability. If that happens, the market will slow down, and home prices will start to level off. Then, the labor market may recover, and new construction could flood the market.
Another concern is that inflation may rise faster than the Fed initially believed. The unprecedented money printing program that the Fed has instituted will drive up inflation in 2023. This could bring about a recession by 2023. Alternatively, the housing market could see double-digit appreciation rates.
There will be a gradual recovery from the housing crisis in the coming years. Despite the slow recovery across the country, the demand for housing in Buffalo is expected to remain high. Rising interest rates and a shortage of housing will affect prices in the city. Those who choose to sell now have a competitive edge in the current market. This can make them more profitable. It is also a time when buyers are looking for a new home.
While the housing market is still hot in Buffalo, home prices will begin to cool down as the year progresses. Zillow predicts that home prices will increase 14.9% this year. However, the trend is shifting back towards buyers. With this in mind, Zillow has forecast a slight growth slow in 2023.
Another positive sign for Buffalo real estate buyers is rising rent prices. According to the StreetEasy Market's April 2022 report, the average New York City house will remain on the market for 46 days in April 2022. That's up nearly 20 days from April 2021. This is one of the most competitive markets in years.
Despite the recent rogue stock market, economic conditions and employment statistics are suitable for home prices. Millennials are a large segment of the population and are in their prime earning years. In other words, it's time to buy a home.
