BUFFALO, N.Y. (WKBW) — The future of Buffalo's housing market is right, according to Realtor.com. Sellers are dropping their asking prices, which is setting the Queen City up for a big 2023.
Even with the final federal interest rate hike of the year, experts predict Buffalo will remain stable. So if you're looking to buy a home, it's a good time to start.
"We're in a good spot and we're a little bit insulated more than other areas because the cost of living and the cost of housing is very low in WNY compared to nationally," said Jay Herlan of 716 Realty.
Why is Buffalo a good housing market?
With rent on the rise, more people are making the long-term investment into buying a house.
"Rents right now are so high compared to what it costs to buy a house on a monthly mortgage budget, so that's really driving the housing market right now," said Herlan.
And compared to other cities around the country, Buffalo is affordable with a median home price of $240,000, compared to the rest of the top 5:
- Hartford, CT: $372,000
- El Paso, TX: $291,000
- Louisville, KY: $290,000
- Worcester, MA: $ 447,000
We also have more people who don't need a mortgage and buy their homes outright, which helps.
When it comes to natural disasters, we don't have too many. Plus, our economy has shifted.
"In terms of our economy, we're shifting more from manufacturing to education and medical," said Matthew Roland, Assistant Dean and Clinical Assistant Professor at the University at Buffalo.
What to know before you buy:
Herlan says know where to go. The most popular places are in or around Buffalo.
"You have bigger buying power in the city because of the low taxes the city gives you, some other popular areas, I mean the town of Tonawanda really took off," said Herlan.
Roland says make sure you run the numbers.
"Your property taxes and insurance and then utilities so try to run a personal budget," said Roland.
He predicts interest rates will remain high in 2023 and property taxes will go up in some communities.
"With low unemployment and increasing costs of inflation, municipalities have to ratchet up the tax rates so people are gonna be paying more in property taxes as well," said Roland.
Both say it's all about planning and making sure you start now if you're looking to buy in 2023.
