Whether you’re looking to add to an existing portfolio or are interested in taking the first leap into the rental investment sector, there’s no hotter housing market right now than Rochester NY. Property investment has long been a popular way to make your money work for you, with more people than ever keen to taste a slice of the pie – and Rochester is tasting impeccable! Competition is high and homes are selling at record speeds, so understanding how it works is key.
Let’s dive in and learn a little more about the trends set for Rochester NY property investment.
What’s Been Happening in Rochester NY Property Investment Market?
As previously mentioned, the housing market in this area has been incredibly competitive, with homes receiving, on average, 11 offers and sold within eight days. This upward trend has continued throughout the summer into July 2023, showing that average prices are up by 17.1% compared to 2022. The only shrinking statistic is the number of properties sold, which dropped this July from 261 to 236.
Checking out the Competition
One of the most popular neighbourhoods for purchasing rental homes, Rochester NY property investment has seen a huge boom, which always means the competition will be fierce. We see this in the offers, which have been up about 18% above the listing price – but the most desirable of homes can be sold as high as 36% more than the asking amount.
We’ve found the best way to observe this rising competition is to compare stats with surrounding neighborhoods and cities. While the housing market has been competitive generally (surrounding areas have sold for 15-20% above listing price), Rochester NY property investment is in a league of its own.
Other Factors to Consider
Despite the intense competition within the Rochester housing market, the area’s average sale price remains below the national average. This means that it can offer opportunities for those looking to purchase their first family home, as well as investors.
We have also observed migration trends influencing the market. Although the percentage of people migrating to Rochester was low (just 0.25%), 77% of buyers tend to be existing residents in the neighborhood who are keen to stay in the area. We can see that new homeowners moving to the region are likely to be attracted to the job opportunities, great amenities, and inviting lifestyle that Rochester offers.
The Forecast for 2023-2024
To really understand the forecast for the upcoming year and be able to invest wisely and with confidence, we recommend buyers familiarize themselves with some key market metrics. The following figures will give you the lay of the land in terms of the housing market.
- Average home prices: $209,985
- Sales over listing price on June 30th, 2023: 84.3%
- Sales under listing price on June 30th, 2023: 11.2%
- Average days to pending sale on July 31st, 2023: 7 days
Another important source of information is the Rochester Metropolitan Statistical Area (MSA), which comprises Rochester NY property investment and the surrounding suburbs. Based on the research done, the forecasts for July 2024 show that the market is expected to grow as the coming year progresses: August 31, 2023: 1.3% growth; October 31, 2023: 2.4% growth; July 31, 2024: 6.9% growth.
What Does this Mean for You?
There are many positives to take away from this trend forecast. Although competition will pose some challenges, such as demanding quick decision-making from buyers, you can be assured of gaining excellent returns on your investment.
Sellers, however, will likely experience above-and-beyond offers from buyers looking to beat the competition. We believe you’ll get a great variety of offers at desirable prices.
Some Final Thoughts
Although a lot of this forecast of the Rochester NY property investment market has been positive, it’s important to remain level-headed. There’s no question that the property market is hot right now, but we must keep monitoring how things progress, as the balance between supply and demand will always be changing at any given time. Overall, if you’re interested in growing your assets, then an excellent area to consider is Rochester NY. Property investment does pose challenges though, so it’s important to stay on top of the market trends and keep in mind your personal investment aspirations.
Torres Turn Key Services
You may think that buying rental property is the hard part, but, once you’ve acquired your asset, the real work begins with finding the right tenant and ensuring that renting and maintaining your investment progresses smoothly. This is where Torres Turn Key can step in with our management services that take away the hassle and stress of renting out a home. From finding the perfect tenant to dealing with maintenance issues and even collecting rent, Torres Turn Key can offer experience and assistance for all your needs as a remote landlord.