Rochester,NY housing market remains stable in second quarter

Statistics released by the Greater Rochester (New York) Association of Realtors showed that the residential housing market improved from the first quarter of 2009.

Closed sales of houses were up 49% over the first quarter, and purchases offered accepted were up even more, at 55%. Even so, sales were still down 13.7% from 2008, which is an improvement over the 2008 results. And for the second quarter of 2009, accepted purchase offers were only down 2.2%, which indicates that closings for the third quarter should be close to the 2008 numbers, predicting improvement over the second quarter.

A large part of the growth in the second quarter is probably attributable to the first time homebuyer's credit which was implemented early in the year as a part of the stimulus package. We continue to see the impact of that credit in the third quarter, and buyers have little time left to find a home so that they can close by November 30 to qualify.

Another important statistic is median sale price, which increased 12.3%, from $105,000 to $117,900 in the third quarter. More importantly, the number remains flat from last year, meaning that prices in the greater Rochester region have not declined from last year. And if you remember, they didn't decline from 2007 to 2008 either, so we continue to have stable prices while other markets in the country have seen housing values declines of up to 20% and more.

Another factor in keeping raising rising and prices stable is the inventory of houses for sale. In the third quarter, listings were down 3%, which is consistent with the annual figures for 2008. So we do not have excess inventory of houses, and in fact have fewer than usual on the market. The popular opinion is that there are too many houses on the market, which isn't the case. However, some of these houses are staying on the market longer, which provides more options for buyers to choose from. This tends to apply more in the over $200,00 market; houses under $200,00 which are fairly priced tend to sell quickly, or in "typical" time periods, and often with multiple offers

All in all, the market is steady, steady, steady. Fewer homeowners are trading up to the expensive luxury homes, as concerns about jobs, investments and the economy keep people in their homes longer. This is helping to keep inventory low.

It's a great time to buy, and a good time to sell if you are fairly priced under $200,000!