Buffalo has been a bright spot in the housing crisis and has managed to buck the national trend of high foreclosure rates and decreasing home values.
Going into this challenging time, Buffalo's history of stable housing prices, a stable economy and our lower unemployment rate seemed to indicate that we would not suffer to the same degree as other markets. Regardless of the fundamentals, it is clear that the national news story had some effect on local housing as a "hunker down" mentality crept into listings and sales.
The good news, however, is efforts to improve the housing market nationally have also had positive results locally. As a result, Buffalo has been listed on a lot of Top Ten lists when it comes to affordability, stability and quality. The fact is that lending is more vibrant in the Western New York market for one very good reason; LOW FORECLOSURE RATES. Nationally in June 2014, 1 in every 1,128 homes went into foreclosure. In Buffalo, that average was 1 in every 4,439. For further comparison, Florida is 1 in every 409*. This statistic has captured the attention of the large commercial banks and, in a lending environment where loan quality is paramount, Buffalo is at the top.
Why should any of this matter to you? Because you are waiting on the sidelines for the housing market to bottom out, you should be aware that many experts believe that it already has. As we move out from the bottom, the up-side for buyers could be huge; with rates hovering around 4% there is not much room for them to go any lower and when the fed stops buying mortgage back securities we could see double digit rates in a few short years.
Normally, this would be called a buyer's market but the feedback we are getting from buyers and agents alike is that there are plenty of buyers but an insufficient inventory of houses for sale. All of this makes a perfect storm for sellers and could even be considered a double win for them; during this time of low mortgage rates and low house inventories, the cost to move to a larger home could not be any lower. The bottom line is the next 6-9 months should prove to be the best real buying opportunity of our generation.
Call us today for a pre-approval of your next home purchase.
Buffalo Loan Officers
*Data according to www.realtytrac.com/statsandtrends/foreclosuretrends