Buffalo, NY (WBEN) To say the real estate market nationally and locally is hot would be an understatement.
Homebuyers are facing the most competitive U.S. housing market in decades this spring. To put that in perspective, the inventory of homes for sale nationally fell to a record-low 1.03 million units by the end of February, or about 30% below what it was a year earlier, according to the National Association of Realtors. That amounts to a two-month supply, well short of the six-month supply economists say is needed for a balanced market. Homes in February typically sold within just 20 days of hitting the market.
Buffalo is right in the middle of it and is among the nation's hottest housing markets right now. Experts say there are several reasons why.
Peter Hunt of Hunt Real Estate says there have been years of positive momentum in the area with regards to economic development and our psychology. "There's a lot of enthusiasm about the direction of our community," says Hunt.
Hunt says amenities are a big plus for Buffalo. "To be able to live in a community with big time sports, culture and a transportation system that's easy to use, and to see how much of a relative bargain it is to live here, people want to get in on it," explains Hunt.
Hunt says buyers do have to compete to get their hands on a new home. "You're competing with historically low interest rates, making it more palatable. If you look at the cost of $10,000 in mortgage money today $40.
Susie Lenahan of MJ Peterson Real Estate agrees with Hunt amenities are a big attraction. "The incredible architecture, the ease of getting around, we have a wonderful city and more people are coming to mid-sized cities," says Lenahan.
But more people coming to Buffalo to find housing means a bigger challenge, says Lenahan. "I had an out-of-town couple who bid on houses last weekend, and they're coming back. They have to find a home as they start their jobs July 1, and they were outbid on three homes," notes Lenahan.
Amber Wesser, President of the Buffalo Niagara Association of Realtors, says people are moving back. "Businesses are bringing private money to the area, bringing jobs to the area, increasing home demand," says Wesser. "Unfortunately the inventory is half of what is was last year, and the demand is twice as high."
Wesser says most economists believe this could continue for the next 12 to 18 months.
Hunt says the average price for a home in Buffalo is reaching $200,000.
