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It’s hard to believe that our Summer is almost over! It seems like it was just yesterday when Summer 2023 began!
The real estate market over the past few years hasn’t seemed to experience the Summertime slowdown that the Rochester area is usually accustomed to. This year was no different with the market remaining very hot in certain areas.
Per usual, here is a post from my Facebook page provides some very simple and easy to follow graphics. These graphics contain some very important real estate statistics for many of the local real estate markets and areas throughout the Greater Rochester NY area!
In this month’s real estate market update, we’re going to discuss some general trends that I have been seeing over the past month. The market is remaining hot in many areas like mentioned above, but I am also starting to see some changes, which we will discuss below.
Over the past couple years, it’s been almost a guarantee that homes for sale in Rochester NY and the surrounding areas would be listed, shown, and would ultimately be under contract on the “Delayed Negotiation” date.
For the first time, in potentially 24 months, I have started to see many homes and other Top Rochester Real Estate agents promoting their listings as being “Past Delayed Negotiations.”
I believe that the main reason for this “new” trend that I’ve seen over the past month is that buyer’s are starting to truly believe that they are not going to be able to compete in this crazy market we have been living in for the past 2-3 years.
For example, if a home is listed for sale in the Pittsford NY area for $300,000 and the home is accurately priced to reflect our recent market, local home buyers believe they will have to offer $375,000 or more to secure the property. They are not taking into account the fact that the Pittsford NY home could actually be priced to the current market values and not severely underpriced to create a bidding war. This is creating some hesitation on submitting an offer or even potentially on looking at the property.
This is typically leading to a home making it past the negotiation date and often will still result in the home receiving multiple purchase offers simply because those buyers who believed they didn’t have a chance will now want to submit an offer. This in many cases can be as many as a dozen buyers who were “waiting to see” if the home sold during the negotiations phase.
As mentioned above, historically, the real estate market in the Rochester area slows during the Summer months of July and August but this is certainly not the case over the past few years.
With a slow in the real estate market typically comes a decrease in home values, which is certainly not the case either last month!
Many local real estate areas in the Greater Rochester market have continued to see a nice improvement in home values.
For example, Penfield NY Realtors saw a nice improvement in the average sale price from June to July 2023! In June 2023 the average home sale price in Penfield NY was $353,826 and in July 2023 the average home sale price was $396,297.
Many real estate markets across the United States are reporting a fairly substantial decrease in home values and the real estate market activity. The month of July would’ve been an excellent opportunity for the Greater Rochester real estate market to join these other markets, but it did not!
I believe that the real estate market in the Rochester NY area will continue on a similar trajectory that we have seen over the past several months, even years. Until there is a large increase in the number of homes for sale, the market will continue to favor home sellers.
With that said, I know many Rochester area home buyers are waiting for this “market to crash” and I truly do not believe this will be happening anytime in the near future.
In fact, I believe that if interest rates start coming down into the high 4% or low 5% range, that market will get even more competitive which will ultimately continue to drive home prices higher. This simply due to the fact that lower interest rates will increase a buyers budget.
Bottomline, if you’re thinking about selling or buying a home in the Greater Rochester NY area, it’s critical to have a conversation with a top real estate agent in the area! I’d be happy to have a NO-obligation conversation with you about what I’ve been seeing in the local markets.
About the author: The above “July 2023 Greater Rochester NY Area Real Estate Market Update” was written by Kyle Hiscock. Kyle has been selling real estate in the Greater Rochester NY area for over 12 years and has helped hundreds of buyers and sellers move in, move around, and move out of the area!
About Rochester’s Real Estate Blog: Rochester’s Real Estate Blog is owned and operated by Kyle Hiscock of the Hiscock Sold Team at RE/MAX Realty Group.
Since being launched in 2013, Kyle has published more than 150 quality, in-depth, and unique real estate related articles on the Rochester Real Estate Blog pertaining to topics varying from home selling to mortgages and everything in between! In addition to quality real estate related content, there are also many quality articles pertaining to the Greater Rochester NY area.
The Rochester Real Estate Blog has been recognized by many reputable websites as one of the best real estate blogs to visit and follow! In addition to being recognized as one of the best real estate blogs, Kyle has been recognized as one of the top Realtors on social media by several organizations and websites.
We service the following Greater Rochester NY areas: Irondequoit, Webster, Penfield, Pittsford, Fairport, Brighton, Greece, Gates, Hilton, Brockport, Mendon, Henrietta, Perinton, Churchville, Scottsville, East Rochester, Rush, Honeoye Falls, Chili, and Victor NY.
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