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June 3rd, 2019 by Marco Santarelli
An Overview of Buffalo Real Estate Market 2019
If you are looking at buying a house in Buffalo real estate market as a potential investment opportunity, you must read till the end. In the last decade or so, Buffalo has experienced some of the highest real estate appreciation rates of any community in the nation. There is a trope that the largest city encapsulates everything of importance and value in a region. This belief leads many to think that London represents the entire United Kingdom, and it leads many to think that New York City is all there is of New York.
While New York City is the largest real estate market in New York and one of the most expensive in the world, this means that the smaller metropolitan areas in the state are more affordable and reasonable for investors. Buffalo, New York is the second largest city in the state; it is home to roughly a quarter million people.
It is the center of the Buffalo Niagara metro area. The area has been written off by many as part of the Rust Belt due to decades of deindustrialization. However, the Buffalo area has stabilized and started to grow again. If you are a home buyer or real estate investor, Buffalo has a track record of being one of the best long term real estate investments in the nation. Let us now discuss the latest market trends and find out what are the overall prospects of Buffalo real estate investment in 2019.
Buffalo Real Estate Market Forecasts 2019 & 2020
The median home value in Buffalo is $86,200 on Zillow.com. Buffalo home values have gone up 14.3% over the past year and Zillow’s Buffalo real estate market predictions is that the prices will rise 7.0% in 2020. The median list price per square foot in Buffalo is $81, which is lower than the Buffalo-Cheektowaga-Niagara Falls Metro average of $120. The median price of homes currently listed in Buffalo is $108,000. The median rent price in Buffalo is $1,100, which is lower than the Buffalo-Cheektowaga-Niagara Falls Metro median of $1,250.
According to LittleBigHomes.com, the Buffalo real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Buffalo real estate market trend prediction is 75%. Accordingly, they estimate that the probability for rising home prices in Buffalo is 75% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Buffalo Housing Market Forecast 2019 – 2021
The Buffalo housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Buffalo housing market trend prediction is 84%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Buffalo is 84% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Buffalo Real Estate Market Forecast.
Buffalo Real Estate Market Trends
Buffalo real estate market trends indicate an increase of $2,000 (2%) in median home sales and a 7% rise in median rent per month over the past year. The average price per square foot for this same period rose to $80, up from $78. Trulia has 473 resale and new homes for sale in Buffalo, NY, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Buffalo for Feb 2 to May 1 was $105,000 based on 241 home sales. Average price per square foot for Buffalo was $80, an increase of 3% compared to the same period last year. The median rent per month for apartments in Buffalo for Apr 7 to May 7 was $1,100.
Data by Redfin.com shows that the Buffalo housing market is very competitive. Homes in Buffalo receive 1 offers on average and sell in around 19 days. The average sale price of a home in Buffalo was $136K last month, up 23.6% since last year. The average sale price per square foot in Buffalo is $96, up 28.0% since last year. Homes typically receive 1 offer. Homes in the Buffalo housing market sell for about 1% below list price and go pending in around 19 days. Hot homes in Buffalo can sell for about 4% above list price and go pending in around 8 days.
Buffalo Housing Market Statistics
There are 975 homes for sale in Buffalo, ranging from $3.9K to $40M on Realtor.com. 176 of which were newly listed within the last week. Additionally, there are 274 Buffalo rental properties up to $4.5K per month. In February 2019 the housing market in Buffalo, NY was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
In February 2019, the median list price of homes in Buffalo, NY was $137.9K, trending up 10.4% year-over-year. The median listing price per square foot was $88. The median sale price was $130,000. Homes in Buffalo, NY sold for 2.65% below asking price on average in February 2019. On average, homes in Buffalo, NY sell after 100 days on the market. The trend for median days on market in Buffalo, NY is flat since last month, and flat since last year.
The median list price in Buffalo, NY is $154,900 on Movoto.com. The median list price in Buffalo went up 3% from May to June. Buffalo’s home resale inventories is 284, which decreased 2 percent since May 2019. The median list price per square foot in Buffalo is $103. May 2019 was $102. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in June.
Buffalo, NY Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the data from the real estate company called Neigborhoodscout.com, the median house price in Buffalo, NY is $104,707, which indicates that home prices in Buffalo are below the national average for all cities and towns. Duplexes, homes converted to apartments or other small apartment buildings are the single most common housing type in Buffalo, accounting for 46.83% of the city’s housing units.
Other types of housing that are prevalent in Buffalo include single family detached homes ( 33.89%), large apartment complexes or high rise apartments ( 16.28%), and a few row houses and other attached homes ( 2.74%). This particular housing mix is relatively uncommon and characteristic of cities that are compact and walkable, and which often have a lively downtown.
The most prevalent building size and type in Buffalo are three and four bedroom dwellings. The city has a mixture of owners and renters, with 39.62% owning and 60.38% renting. Currently, there are 218 single family homes for sale in Buffalo, NY on Zillow. Additionally, there are 59 single family homes for rent in Buffalo, NY. Under potential listings, there are about 9 Foreclosed and 207 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Buffalo, NY Foreclosures And Bank Owned Homes
In Buffalo 0.0 homes are foreclosed (per 10,000). According to Zillow.com, this is lower than the national value of 1.2. The percent of delinquent mortgages in Buffalo is 1.9%, which is higher than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Buffalo homeowners underwater on their mortgage is 7.7%.
There are currently 621 properties in Buffalo, NY that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 433. In April 2019, the number of properties that received a foreclosure filing in Buffalo, NY was 41% lower than the previous month and 29% higher than the same time last year.
Home sales for March 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Buffalo was $0. The median sales price of a foreclosure home in Buffalo was $0, or 0% higher than non-distressed home sales.
Buffalo Home Prices And Real Estate Appreciation
Buffalo real estate appreciated 55.05% over the last decade, which is an average annual home appreciation rate of 4.48%, putting Buffalo in the top 10% nationally for real estate appreciation. Buffalo real estate appreciation rates are so strong that despite a nationwide downturn in the housing market, Buffalo real estate has continued to appreciate in value faster than most communities.
In the last twelve months, Buffalo real estate appreciation rates has continued to be some of the highest in the nation, at 8.07%, which is higher than real estate appreciation rates in 79.60% of the cities and towns in the nation.
Buffalo real estate appreciation rates in the latest quarter were at 2.66%, which equates to an annual appreciation rate of 11.09%. This makes Buffalo one of the highest appreciating communities in the nation for the latest quarter, and may signal the city’s near-future real estate investment strength.
The above statistics on real estate appreciation in Buffalo were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to New York, their data shows that Buffalo’s latest annual appreciation rate is higher than 90% of the other cities and towns in New York.
Where Should You Buy Real Estate In Buffalo, NY?
There are 296 schools in Buffalo, NY. There are 97 elementary schools, 76 middle schools, 54 high schools and 69 private & charter schools. There are 74 neighborhoods in Buffalo. Some of the best neighborhoods to buy real estate in Buffalo, NY are West Seneca, North Park and Kenmore.
Delaware – West Ferry has a median listing price of $348.5K, making it the most expensive neighborhood. Schiller Park is the most affordable neighborhood to buy real estate in Buffalo, with a median listing price of $55,000. Here are the 10 best neighborhoods in Buffalo to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
10 Reasons For You To Invest in Buffalo Real Estate in 2019
Investing in real estate is touted as a great way to become wealthy. Is Buffalo rental property good for investment? Planning to invest in the Buffalo real estate market? Many real estate investors have asked themselves if buying a property in Buffalo is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Buffalo housing market 2019 forecast for answers on why to put resources into this sizzling market. Home prices in Buffalo have been trending up 10.4% year-over-year and are predicted to rise by 7% in 2020. Here are the top 10 reasons to invest in the Buffalo real estate in 2019.
1. It Is Not New York City
One benefit of the Buffalo housing market is that it is overshadowed by New York City. There is not the same influx of investment capital, ironically driving up property prices. The greatest impact they have is on the luxury real estate market, but it influences all levels of the NYC real estate market.
2. It Is Better for Property Owners
New York City is famous for its rent control, its systematic protection of renters over landlords even if they do not pay the rent, and the insane rents. The city elites ignore how the first two result in the third. These are reason enough to Buffalo rental properties instead of NYC properties.
Another reason to consider buying Buffalo rental properties is that the more affordable real estate market means there is not political demand to institute rent control and other policies that would hurt the ROI on any Buffalo rental properties you might buy.
3. Buffalo Real Estate is More Affordable
The Buffalo real estate market is far more affordable than the more famous real estate markets. In fact, it is described as one of the most affordable housing markets in the country. You can buy one to four upscale single-family homes in the Buffalo housing market for a million dollars.
Good luck finding a two-bedroom condominium in NYC for that. You could snap up several homes in the Buffalo area for half a million dollars, because the median sale price was 150K in 2018.
4. Buffalo Is a Hot Real Estate Market
While there are not many articles talking about how hot the Buffalo real estate market is, the fact is that the single-family market is hot for homes between 250,000 and 500,000 dollars. These homes are appreciating faster than the rest of the market due to demand.
Another factor driving this is the lack of inventory in the Buffalo housing market. There has not been much demand for new housing, so it has not been built except in a few limited areas. Existing older homes were bought and fixed up by people who intended to stay long-term.
This increases competition for the few move-in ready homes on the market. In 2018, the average home in the Buffalo housing market sold in 28 days, twice as fast as the average home in the country.
5. But It Isn’t Too Hot
The Buffalo real estate market saw median home prices rise about 8 percent in 2018. It has risen almost 20 percent over the past three years. The housing market has slowed down a little in 2019. Prices will probably rise 2 percent in 2019. This means the Buffalo housing market is stable and slowly appreciating, and the factors driving this mean it will not go down in value in the near future.
6. Redevelopment Is Causing Values to Spike in Certain Areas
Buffalo’s West Side is an established, walkable community. The dense, walkable neighborhood style is being copied in new and redeveloped subdivisions across the United States. There are a few such areas being built in East Aurora, while everyone else who wants this is competing for properties in the West Side of Buffalo. That is going to contribute to a rapid rise in rental rates for Buffalo rental properties in both of these areas.
7. Fix and Rent Remains a Viable Option
The median home in the Buffalo housing market was less than 200,000 dollars. This creates an excellent opportunity both for those who want to buy homes to flip in the Buffalo housing market and those who want to buy distressed homes to fix up and use as Buffalo rental properties. These homes are languishing on the market because homebuyers want move-in ready properties.
8. The High Return on Investment
Buffalo rental properties offer an excellent return on the investment. The median rent per month for the Buffalo area is 1100 dollars per month, while the median sale price is between 100,000 and 200,000 dollars depending on the neighborhood. The limited supply of rental real estate explains why the monthly rent for Buffalo rental properties is expected to rise seven percent in 2019.
9. The Surprisingly Large Student Market
The University of Buffalo and the collection of private schools in the area create strong demand for Buffalo rental properties, as long as they are close to campus. The University of Buffalo has around thirty thousand students.
Private colleges here include Daemen College, Canisius College, Bryant and Stratton College and Trocaire College. Better yet, almost all of these colleges are home to more than a thousand scholars.
This means that investors who want to own Buffalo rental properties serving the student market can diversify by owning several properties across the Buffalo real estate market.
10. The Small Apartment Building Supply Is Disproportionately Large
The Buffalo real estate market is dominated by older homes. A majority of homes in the Buffalo housing market were built before World War 2. Interestingly, this also means that there are many small apartment buildings designed to serve a population that rented small units close to their jobs.
For example, roughly a third of homes are single-family detached homes, while almost half take the form of small apartment buildings. This creates an excellent opportunity for those in the market for Buffalo rental properties.
You could buy a small apartment building with multiple tenants for the cost of a single rental property in a more expensive New York real estate market.
Buffalo Real Estate Investment
Maybe you have done a bit of real estate investing in Buffalo but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you are a home buyer or real estate investor, Buffalo real estate investment definitely has a track record of generating one of the best long term returns in the U.S. through the last ten years. If you invest wisely in Buffalo real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Buffalo, NY. Ignore the Big Apple and look to west if you want to buy rental real estate in New York. The Buffalo housing market offers a surprisingly good deal with low prices and relatively high rental rates.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Buffalo, NY is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
Other Best Places To Invest In Real Estate
Another market that we suggest is the housing market in Wilmington, NC. The Wilmington housing market is stable, slowly growing and not going to see a change in the demand for rental properties any time soon. Several factors contribute to rents being higher than you’d expect given the average wages and property values, increasing the ROI on Wilmington investment properties. Furthermore, there are several niches you can explore to achieve even higher returns, depending on the market you’d like to serve.
Another point in favor of Wilmington investment properties over those in hotter markets like Orlando, Florida is the far lower overall tax rate. We’ve already mentioned their low property tax rate. However, they are also notable for having very low income taxes, too. This means you’ll have low taxes on Wilmington investment properties whether you’re paying them as an individual or own them through a limited liability corporation.
Another market that we suggest is the housing market in Topeka, KS. Topeka real estate market is an affordable, stable market seeing slow growth in rental rates and property values. Better yet, the legal and tax environment is favorable to property owners, while other parts of the country seem intent on destroying their rental markets.
Topeka is trying to revitalize downtown. The demand for lofts by young professionals is far higher than the supply. There is a shortage of luxury housing in downtown, as well. This creates an excellent opportunity for those who want to renovate properties to meet this niche.
Home prices in Topeka grew six to seven percent last year. The median home value increased almost ten thousand dollars since 2016. Why would the Topeka real estate market see steady appreciation when there is tepid demand? This is because there is almost no pressure to build anything new, though the population is stable and slowly growing.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Better for landlords
Not New York City
But isn’t too hot
Fix and Flip
Overview of the city
Market Data, Trends and Statistics
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