Prices Soared in Buffalo During the Third Quarter
Home prices in the Greater Buffalo-Niagara Falls Market increased in the third quarter as inventories of homes for sale reached new lows. Sales declined during the quarter as the summer sales ended and homes took longer to sell, according to the third quarter market report from HUNT Real Estate ERA.
Supplies of Homes Trail 2016
Inventories in Erie and Niagara Counties rose slightly during the third quarter but remained very low, 12 to 18 percent below last year at this time. Supplies were large enough to fulfill demand for only 2.7 months in Erie County, 15.6 percent less than a year ago.
Tight supplies in Erie County improved during the quarter and homes took three days longer to sell in September, but still sold in only 28 days — 22 percent faster than a year ago.
In Niagara County, homes sold in 36 days by the end of September, nine days slower than in July.
Sales Declined from Last Year
Sales declined in Niagara County by 20 percent during the quarter due to low inventories, but sales in Erie County fell only 1 percent. Sales in both counties continued to trail sales from a year ago by 17.5 percent in Erie County and 25 percent in Niagara County.
With fewer homes on the market, prices rose steadily during the quarter, increasing 4 percent in Erie County and 5.7 percent in Niagara Counties. By the end of the quarter, prices in both counties were well ahead of last year.
“Opportunities for home sellers continue to be excellent throughout Erie and Niagara Counties. Prices are rising quickly and homes are still selling in less than one month. Sales are slowing down as the summer ends, but prices will probably end the year significantly higher than last year,” said Peter F. Hunt, Chairman and CEO of HUNT Real Estate Corporation.
Buffalo Prices Jumped 24 Percent in the Third Quarter
The median sale price of homes in the city of Buffalo soared from $100,000 to $124,000 during the quarter, a 24 percent increase in three months. In September, Buffalo’s median price was 83.1 percent higher than it was in September 2016 as it began to rise in June and accelerated appreciation through the third quarter. The huge year-over-year price growth reflects both price declines last summer and fall and price appreciation over the past four months throughout the summer sales season.
Buffalo’s inventory entered the spring buying season with 38 percent fewer homes for sale than the previous year. Low inventories plagued the market during most of the summer. By the beginning of the third quarter, the city’s supply of homes for sale trailed last year by 20 percent. From July through September, inventories steadily rose as sellers responded to rising prices. By the end of the third quarter, supplies were only 11.5 percent lower than a year ago.
Sales in Buffalo fell 8 percent during the quarter as summer ended. Homes took longer to sell as demand fell, rising from only 17 days in July to 26 days in September, nearly 30 percent faster than a year ago.
Buffalo Home Prices Through the Third Quarter
Source: Western New York Real Estate Information Systems
Prices Rose 4 Percent in Erie County
Despite Buffalo’s price surge, prices in Erie County as a whole rose only 4 percent during the quarter to reach a median price of $158,500. During the quarter, sales increased very slightly and homes took slightly longer to sell. Inventories of homes for sale rose 4.5 percent during the quarter, which helped sales and moderated price increases.
Niagara County Home Prices Rose 20 Percent
Single-family home prices in Niagara County rose slightly in August and now are 19.6 percent higher than they were just a year ago. The county’s median sale price reached $141,000. Sales were up 2.1 percent over July and trail last year by less than 1 percent. Inventories, however, are very low compared to a year ago. Though new listings in August rose 10 percent over July, the total supply of homes for sale in the county is 21.6 percent below a year ago. With fewer homes on the market, Niagara County homes are selling in 32 days, compared to 50 days a year ago. The county ended the quarter with only a three month supply of homes for sale.
Niagara County Home Sales Through the Third Quarter
Source: Western New York Real Estate Information Systems
About HUNT Real Estate Market Reports
HUNT’s monthly market reports help home buyers, sellers and homeowners track current trends in their real estate markets. The reports are analyses based latest data from area multiple listing sources available from Western New York Real Estate Information Systems.
