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2Q Median Home Prices Rise 5.2% in Buffalo

Wednesday, August 11, 2010

The Buffalo Niagara housing market fared well in the second quarter as median-price increases outpaced other Upstate New York metro areas.

The National Association of Realtors said a nationwide trend in firming home prices solidified in the period with more cities showing increases from a year ago. The gains, the trade group said, were aided by a surge in sales driven by the 8,000 home-buyer tax credit which has since expired.

In the second quarter, 100 out of 155 metropolitan statistical areas had higher median existing single-family home prices in comparison with the second quarter of 2009, including 14 with double-digit increases; two were unchanged and 53 metros showed price declines. In the first quarter of this year 91 areas had higher prices, while only 26 metros experienced annual price gains in second quarter of 2009.

The updated report placed median prices in the Buffalo area at $121,400 — still well below the national median of $176,900 — were up 5.2 percent from $115,400 a year ago. The national median increase, year-over-year, was 1.5 percent from $174,200.

Other upstate markets had modest-to-slight median price gains. Rochester was up 1.9 percent to $121,400, matching Buffalo's prices. Syracuse edged up 0.6 percent to $125,300 while Albany’s median prices increased 2.6 percent to $194,300. Binghamton was down 5.9 percent to $110,800.

NAR noted distressed homes accounted for 32 percent of second-quarter sales nationally, down from 36 percent a year ago.

Lawrence Yun, NAR chief economist, said the correction in home prices appears to have ended in 2009.

“All year we’ve been seeing relatively flat national home prices, which appear to be supported by market fundamentals,” he said. “Prices in some areas remain below replacement construction costs, so even with an elevated supply of existing homes on the market we don’t expect any consequential movement in home prices for the foreseeable future. Very low inventory of newly built homes also will help to support home values.”

San Jose, Calif., had the highest single-home median prices in the nation at $630,000, a 26 percent jump from a year ago.