The Buffalo housing market is a hot topic for both homebuyers and real estate enthusiasts. In this blog post, we will dive into the current market trends and forecasts for Buffalo, New York. Whether you're considering buying a home in Buffalo or just curious about the real estate scene, this article will provide you with valuable insights.
Market Trends
As of September 2023, Buffalo's housing market shows several interesting trends. Data by Redfin shows that the median sale price of homes in Buffalo has increased by 1.0% compared to the previous year, reaching a median price of $202,000. This price growth indicates the city's real estate market's resilience and attractiveness.
One essential metric to consider is the average number of days on the market. In September 2023, homes in Buffalo were selling in 13 days, compared to 11 days the previous year. This data highlights the quick turnover of properties, showing the high demand for homes in the Buffalo area.
It's also worth noting that in September, 229 homes were sold, which is a decrease from 255 homes sold during the same period the previous year. This decrease may indicate a slightly slower pace in the Buffalo housing market, but the market remains competitive overall.
Competitiveness
The Buffalo housing market is described as very competitive, with a Redfin Compete Score™ of 100, where higher scores signify higher competitiveness. In this environment, many homes receive multiple offers, and some even have waived contingencies.
The average homes in Buffalo tend to sell for about 5% above list price and go pending in approximately 13 days. Hot properties can sell for around 15% above list price and go pending in just 8 days, showcasing the intense competition for certain homes.
Sale-to-List Price
The Sale-to-List Price ratio is another indicator of the market's competitiveness. In 2023, the ratio stands at 104.7%, suggesting that homes in Buffalo are selling for more than their list price, on average.
Migration and Relocation Trends
When it comes to migration and relocation trends, Buffalo attracts some newcomers while also seeing residents leave for other destinations. Approximately 0.28% of homebuyers from outside metros searched to move into Buffalo. Among those, Syracuse, NY, followed by Rochester, NY, and Washington, DC, were the top origins of potential Buffalo residents.
On the flip side, some people from Buffalo are relocating to other areas. The most popular destinations for Buffalo residents leaving the city include Cape Coral, FL, Tampa, FL, and New York, NY.
Thus, the Buffalo housing market is dynamic and competitive, with a consistent rise in median home prices and a quick turnover of properties. The city attracts both newcomers and residents looking to move elsewhere. With a range of schools and natural hazard considerations, Buffalo offers diverse opportunities for homebuyers.
Buffalo Housing Market Forecast 2023-2024
The Buffalo housing market has been experiencing steady growth, with the average home value reaching $215,219. This marks a 4.0% increase over the past year, showcasing a positive trend for homeowners in the area. Notably, properties are going pending in just around 10 days, reflecting the high demand for real estate in Buffalo. The data is current as of September 30, 2023.
Key Metrics for Buffalo Housing Market (as of August 31, 2023)
- Median Sale to List Ratio: The median sale to list ratio for Buffalo stands at 1.089, indicating that homes are selling close to their listing prices.
- Percent of Sales Over List Price: As of August 31, 2023, a significant 77.9% of property sales in Buffalo are taking place over the list price, suggesting a competitive market.
- Percent of Sales Under List Price: Conversely, 17.3% of sales are happening under the list price, showcasing opportunities for buyers to negotiate favorable deals.
- Median Days to Pending: The median time it takes for a property to go pending in Buffalo is 10 days, highlighting the speed at which properties are being snatched up.
Buffalo Housing Market Forecast 2023-2024
Market Projections for Buffalo, NY
While the current market conditions in Buffalo are favorable, it's crucial to look ahead to the future. The forecast for the Buffalo housing market in the coming year is as follows:
- As of October 31, 2023, the market is expected to maintain a growth rate of 0.3%.
- By the end of December 2023, the growth rate is projected to remain at 0.3%.
- Looking further ahead to September 30, 2024, the market is anticipated to experience a more significant growth rate of 1.7%.
These figures suggest that Buffalo's real estate market is expected to continue its upward trajectory, making it an attractive prospect for both buyers and sellers in the upcoming year.
The Buffalo housing market is currently on an upswing, with rising home values and a competitive environment. The future forecast indicates that this growth is likely to continue into 2024, making Buffalo, NY, an enticing destination for real estate investments and transactions.
Should You Invest in the Buffalo Real Estate Market?
Investing in real estate is a significant decision that requires careful consideration of various factors. As you contemplate your investment options, the Buffalo real estate market emerges as an intriguing candidate. With its unique characteristics, trends, and potential, the Buffalo market presents both opportunities and considerations for prospective investors.
The Current Landscape
At the heart of any investment decision is the current state of the market. As of now, the Buffalo housing market showcases noteworthy trends that capture attention. The average home value in Buffalo stands at approximately $215,219, representing a 4% increase over the past year. This consistent growth underscores the resilience of the market, making it an attractive prospect for investors seeking appreciation.
Furthermore, the rapid pace at which homes transition to a pending status—around nine days—signifies strong demand and competition among buyers. This aspect can be particularly appealing to investors seeking to capitalize on a bustling market environment. These metrics reveal the competitive nature of the market, with a high percentage of sales occurring above the list price. The swift median days to pending also highlight the urgency with which properties are being snapped up, indicating robust demand from buyers.
Looking Ahead: Forecast Insights
Peering into the future is essential when considering an investment. The Buffalo Metropolitan Statistical Area (MSA) housing market forecast offers valuable insights into the potential trajectory. With projected growth rates of 1.7% by September 2024, the forecast hints at a promising outlook. These figures underscore the market's potential for appreciation, making it a noteworthy candidate for investors seeking long-term gains.
Factors to Weigh
As you assess whether the Buffalo real estate market aligns with your investment goals, consider a few key factors:
- Market Dynamics: The competitive market environment can lead to multiple offers and quick sales. Assess if this aligns with your investment strategy.
- Rental Demand: Investigate the demand for rental properties in Buffalo, as this can be a viable investment avenue.
- Local Economy: Understanding the economic landscape of Buffalo is crucial, as it influences housing demand and tenant stability.
- Long-Term Vision: Determine if your investment horizon aligns with the potential for market appreciation over time.
Investing in the Buffalo real estate market offers a blend of promising opportunities and thoughtful considerations. With its steady growth, competitive dynamics, and positive forecast, the market holds appeal for those seeking to diversify their investment portfolio. However, as with any investment, conducting thorough research, considering your goals, and consulting with professionals can help you make an informed decision that aligns with your financial aspirations.
Sources:
- https://www.zillow.com/buffalo-ny/home-values
- https://www.redfin.com/city/2832/NY/Buffalo/housing-market
- https://www.realtor.com/realestateandhomes-search/Buffalo_NY/overview
