With hindsight always being 20/20, I can be honest and start by saying that this blog should have been written in January. However, I don’t think anyone could have predicted the extremes that we have experienced in the Rochester real estate market so far through the Winter of 2022. We have been saying every year for some time now that the year prior was the most extreme Seller’s market we have ever seen. So far the first 2 months of the year have proven that 2022 has much of the same, if not more, in-store. Here are some dynamics in play currently as we head into the Spring real estate market in Rochester, NY, and the surrounding areas:
Low Inventory - this has been a theme since the start of the Seller’s market a handful of years ago, but now we can actually point to a steep decline in the data from the year prior for new homes available for sale. Before the supply could not meet the unusually high demand, and now the supply could not feed the demand even if it were cooler than what it is now.
Fluctuating But Still Historically Low-Interest Rates - The interest rates have risen a full point in most cases over the last few months, and so far even with that increase the home buyers don’t seem to care. I would like to think that the perspective of a rate that is in the 4% range still being a historically low-interest rate is one reason why. The conflict in Ukraine, among other factors, has caused rates to stop increasing for the time being, so there could be an even stronger momentary push of demand right now and in the immediate future.
Strong Economy Despite High Inflation - With the cost of everything on the rise recently, surprisingly there hasn’t been much change in the overall economic impact that would hit the bottom line of the everyday consumer. Consumer confidence is still high and people are still buying. This theme carries over to the real estate market as well, where consumers are also not shy with spending on their most treasured possession, their home.
Price Appreciation Growth Is Expected to Continue - The overall prediction for 2022 by many is that pricing will continue to rise. It may not be as steep of an incline as the last couple of years but there is still growth expected to play out in the housing market this year locally and nationally. With that said, and with factoring in higher interest rates down the road, it may be an opportune time to sell if you are needing to buy as well. This way you can capitalize on what could be a lower interest rate and pricing where it is today vs where it could go up to tomorrow.
Timing Is Everything - They say you can’t “time the market”, which is true in my opinion as well. However, we can look at how markets operate and know that in the Rochester, NY real estate market the Spring and Summer seasons will bring the most listing inventory to the market for the year. There is still a window of opportunity now, before the Spring truly blossoms, to beat that rush of inventory that will hit the market and make your listing stand out vs risk getting lost in the crowd.
