As housing prices rise, affordable areas become hot markets
What is the most important real estate market in America? The answer may surprise you.
The Rochester, New York, area was the hottest housing market in August, according to Realtor.com. Located in upstate New York off Lake Ontario, it is closer to Canada than New York City.
The report noted that the high cost of home ownership is pushing buyers out of large city centers and into more affordable areas. According to Realtor.com, the median listing price of a home in the United States in August was $435,450. The median listing price for a home in the Rochester, New York, area was $250,000.
The report on America’s Hottest Housing Markets is determined by housing competition measured by reviews of home listings and the number of days a home is on the market.
Nicholas Berlet, an agent with RE/MAX Realty Group in the greater Rochester area, said most of his home listings have sold with multiple offers. Some buyers sweeten the offer by removing contingencies such as the right to inspection.
His listing for a 2,200-square-foot Tudor-style home in Rochester priced at $449,000 sold for $561,000 in July. The buyer was from out of town and paid for it in cash with no contingencies, Berlet said.
Berlet recently rented a house to a family from Miami who decided they wanted a change from city life. In addition to the lower cost of housing, people are moving to the Rochester area for a slower pace of life and suburban school districts, Berlet said.
Mark, Heather Jehan and their two children moved to the Rochester suburb of Brighton from the Seattle area to be closer to family, due to lower housing costs and a desirable school district. They bought a 4,200-square-foot home in a walkable neighborhood for $570,000 in 2020, a home they wouldn’t be able to afford in the Seattle area, Mark Gehan said.
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Fourteen of the top 20 hottest markets in August were below the national average price. The top ten list is: Portland, Maine, with $611,000; Manchester and Nashua, New Hampshire, for $557,000; Springfield, Massachusetts, $374,000; Worcester, Massachusetts at $499,000; Rockford, Illinois, $217,000; Columbus, Ohio, $386,000; Providence, Rhode Island, for $550,000; Concord, New Hampshire at $578,000; and Dayton, Ohio, at $249,000.
Rockford, the lowest-priced market on the list, had an average list price that was half the national average.
Realtor.com said in its report that low inventory of existing homes for sale continues to impact most real estate markets across the country. Affordable areas saw hot demand despite rising interest rates.
This is the second time in the past year that the Rochester area has topped the list of hottest markets, according to Realtor.com.
Real estate is local, Berlet said, and there are certain areas in the Rochester area that are more in demand, such as the suburbs of Brighton and Pittsford and the southeast area of the city. He added that sales increased in all areas in all regions of the region.
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