ROCHESTER AREA HOUSING MARKET SEES STRONG THIRD QUARTER

 

ROCHESTER, NY - October 24, 2014 -  The Greater Rochester / Finger Lakes housing market saw 3,525 closed home sales in the third quarter, a 15.9% increase in sales from the previous quarter.  It was the second best quarterly performance since 2010. The inventory of homes for sale declined 8.2% from last year, which continues to impact sales.  Median sales prices were off slightly from the previous quarter.

"Home sales were off 6% when compared to the same quarter last year, but the third quarter of 2014 was the best quarter since 2010, when the Federal Government's first-time home buyer tax credit drove sales higher," said GRAR President Andy Burke. "And last year we had a higher inventory of homes to sell and interest rates were lower."

Pending sales for the third quarter were up almost 1%, indicating a strong fourth quarter to come. This continues a pattern that began last winter, when unusually cold weather delayed the start of the traditional home selling season and extended it into the late fall.  The longer selling season is partially a result of new mortgage rules that went into effect this year, which have lengthened the time it takes to close on a mortgage.

Low inventory continues to plague the real estate market, and homeowners are staying in their homes longer.  "The continued low inventory of homes for sale bodes well for sellers who may have been waiting on the sidelines to list their homes.  And the inevitable rise in mortgage rates should continue to encourage buyers to purchase sooner rather than later."

Median price dipped slightly, down 1.5% from last quarter, although Monroe County towns Greece, Hamlin, Parma, Henrietta, Perinton and Pittsford all saw price gains.  "Increased activity by trade-up buyers helped to drive up the third quarter median sales price in these towns," said Jim Yockel, GRAR CEO. "As these homeowners move to larger homes, it creates opportunities for first-time buyers hoping to take advantage of still-favorable mortgage rates." Additionally, home sellers on average received 94.6% of their asking price in the third quarter of 2014, up slightly from last quarter and the year-ago period, indicating that demand is strong.

"Looking ahead, we continue to see a positive trend in pending sales and new listings, which is encouraging for the typically slower late fall market," said Yockel.

Click here to view the third quarter stats report.                                   View the 3Q Video Report