Rochester, NY housing market survives rough first quarter and trends upward

The results for first quarter homes sales in the Rochester, NY region are a mixed bag with a silver lining. Closings (completed sales) for the first quarter were down 22% from 2008's first quarter. Closings in the first quarter typically result from sales contracts written in the fourth quarter and January, which were very tough months. There was also a decline in purchase offers accepted of 19.8% from the first quarter of 2009 compared to 2008. Median sale price declined 3.4% in the first quarter, a steeper drop than we saw for all of last year.

So where's the silver lining? Well, we now know that the first quarter of 2009 showed the greatest decline in GDP since the 1950's. And the fourth quarter of 2008 wasn't much better, especially after the dramatic decline in the stock market that occured in October. In general, the economy was struggling and consumers put everything on hold. Retail sales were down, car sales were down and home sales were down. There is a great deal of uncertainty as companies lay off workers and our government struggles to turn the economy around. We should consider these past two quarters as great anomalies that won't soon be repeated.

But the Rochester home market still seems to outperform the nation. As the spring selling season got into full spring in March and April, houses seemed to sell quickly. The inventory of homes continues to be less than normal, and listings are down 2.3% over last year's first quarter. But the tax credit for First-Time homebuyers has brought many buyers into the market. And other buyers, who sat on the fence during the uncertainty of the past few months, are now making purchase decisions. As we hear of more positive indications of economic improvement (consumer sentiment, inventory declines, home sales, etc), we see it reflected in home sales.

The last three listings I put on the market, one in Henrietta and two in Honeoye Falls, all sold within days, and I continue to get calls from buyers desperate to find similar homes. I have seen other listings sell just as quickly, as long as they were under $200,000, a price range that attracts first time homebuyers. And home SELLERS that have been sitting on the fence are slowly getting the word that houses are selling at stable prices, so they are considering putting their house on the market after all.

I expect to see this trend reflected in the statistics for the local Rochester housing market in future months. Stay tuned to this blog to so if I'm right! And be sure to visit www.AJBurke.com!