Low inventory leads to intense housing market
by: Mary Chao
When David Richard and his girlfriend Kate Burt decided to buy a home earlier this year, they knew it was a competitive real estate market. Sellers of homes in the $175,000 to $225,000 range in good condition in east sidesuburbs were receiving multiple offers, often over asking price.
The couple worked together with their Realtor Christine Yager of Howard Hanna Real Estate Services on a strategy, writing a personalized letter to the sellers. They won the multiple bid scenario and recently moved into their four-bedroom, 2,100 square-foot home in Penfield.
“You have to be creative in this market,” Yager said.
The current market is decidedly a seller’s market, with conditions favoring people who have homes for sale. The demand for homes is especially strong in the mid-tier price points of $175,000 to $250,000 in eastside suburbs, $120,000 to $200,000 in westside suburbs and the southeast area of Rochester, according to area real estate professionals.
What’s driving the frenzied market is the lack of available inventory and fear of rising interest rates, Yager said. According to the Greater Rochester Association of Realtors, the number of homes listed fell by 22.6 percent during the third quarter of 2017 that ended Sept. 30, compared with the same period last year with 1,702 homes listed for sale in Monroe County. That caused the quarterly sales to fall by 6.3 percent with a total of 2,597 sales during the three months of July, August and September.
The low inventory issue has been a drag on the market all year, beginning with an extremely busy market in January as buyers fight for the available homes on the market and continuing well into late in the year as the market extends into late fall.