Western New York summer home sale prices hit record

Home sale prices in Western New York hit new peaks over the summer, as the region's housing market continued to churn past historic records.

The median sale price hit record highs in August and September as high demand for homes continued to outstrip supply.

The median sale price rose 11% in August from the same month a year earlier, hitting $150,000 for what appears to be the first time, according to Buffalo Niagara Association of Realtors statistics. It dropped slightly in September, to $147,500, but that was still 9.3% higher than September 2016.

"It is a seller’s market," said John Leonardi, the trade group's CEO. "It’ll remain that way going into the first quarter of 2018."

The surge in prices came as the number of closed sales continued to drop compared to a year ago. Continued low interest rates and strong interest in certain neighborhoods of Buffalo and its surburbs have driven heavy activity. Brokers for months have reported rampant competition for homes and buyers who haven't been able to find enough homes to meet their desires.

Buffalo, N.Y., skyline

"Just when you think this market may slow down, it kicks back up," said Chris Corica, founder and president of Queen City Funding, a mortgage brokerage.

Corica described an "overflow of buyers" who have driven demand and a steady supply of new mortgage applications.

"I don't see a slowdown in sight," Corica said.

The number of closed home sales reported by the Buffalo Niagara Association of Realtors in August fell 10.8% from an all-time high of 1,414 in August 2016. Closed sales also plunged 18.2% from September 2016 to September 2017. Some of that drop could have been driven by a change in the way the association reports monthly sales figures. BNAR recently switched to reporting the prior month's sales within 10 days of the month's end, instead of waiting 40 days, giving Realtors less time to submit their final figures.

While prices have increased, there are fewer homes going on the market and less inventory available.

Homeowners added 1,629 homes to the market in August, which was down 3% from the same month a year before. They added 1,368 in September, down 9% from September 2016.

"The overall market continues to be very robust with a continued lack of inventory at almost every price point this year and new buyers entering the marketplace," M.J. Peterson real estate agent Susan Lenahan.

The average price reached $177,266 in August — the first time it has ever surpassed $175,000, BNAR statistics show. That's also a doubling since late 1999.

And while it fell slightly in September, to $174,360, that's still up 6.8% from a year ago. It's also the highest for September and the second-highest on record, after August.

"Good for Buffalo," said Louis Vinci, an agent at Howard Hanna Real Estate Services. "It's about time Buffalo got some respect."

BNAR reports transactions involving its member Realtors in the eight-county region of Western New York, as well as some of its members' sales in Monroe and Livingston counties.

"This is good for the area overall. Our economy is strong, with plenty of strong buyers willing to pay for the right home in that median price point," said Greg Straus, broker at 716 Realty in Tonawanda. "I am as busy now as I have been all year."

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Home prices Real estate Purchase Housing markets New York
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