Rochester offers numerous perks to its residents, but a national real estate report has found that the Flower City may also be able to add “low housing prices” to its résumé.
According to Consumer Affairs, the latest U.S. housing report from the end of 2015 was recently released by CoreLogic, which uses its Home Price Index (HPI) to determine how well (or poorly) the market is faring in different cities.
In general, U.S. housing prices continued to increase as 2015 came to an end. The average price of a home in Dec. 2015 — which includes distressed sales — rose approximately 6.3% from the same time a year earlier.
Additionally, December’s statistics showed a notable increase from the previous month, rising 0.8% since November. While the rest of the country pays more for their homes, it seems as if Rochester is currently immune to these trends.
“Nationally, home prices have been rising at a 5% to 6% annual rate for more than a year,” said Dr. Frank Nothaft, chief economist for CoreLogic.
“However, local-market growth can vary substantially from that. Some metropolitan areas have had double-digit appreciation, such as Denver, CO and Naples, FL, while others have had price declines, like New Orleans, LA and Rochester, NY,” Nothaft continued.
An average of 45 million people move each year, and Rochester is typically not one of the most sought-after destinations in the country. Considering its low housing prices are now being mentioned in national reports, the city may be welcoming a new influx of home buyers in the near future.
According to The M Report, the vast majority of home buyers in other cities aren’t being scared off by the price increases. In fact, existing home sales for Jan. 2016 are projected to reach up to 5.5 million, marking a 9.8% year-over-year increase from 2015.
As part of its annual report, CoreLogic also forecasts how the national real estate market will fare for the remainder of the year. By Dec. 2016, CoreLogic expects the average national home price to increase an additional 5.4%.
These continued price increases will eventually begin to weigh on many cash-strapped home buyers, and Rochesterians should be thankful that the local real estate market is staying so consistent.