Summer heat sets in across Northeast housing markets

Colleen Collier, an agent with Buffalo-based REMAX Plus, described a similar dynamic.

“There’s been multiple offers coming, selling over asking price, people relocating to the area and kind of rediscovering the Buffalo-western New York market,” she said, “They’re searching for that big city feel without the traffic and congestion of being in a big city.”

The regional strength stands out against a national market that is gradually becoming more balanced.

Nationally, active single-family inventory stands at 865,709 homes, with a median list price of $448,665 and a median of 63 days on market. Price reductions have climbed to 41.4%, while months of supply sit at 2.4.

Leading Northeast markets are operating with considerably tighter supply. Rochester has 1.0 months of supply, Hartford has 1.1 months — while Boston and Buffalo each have 1.4 months.

Robert Levine, broker-owner of Hartford-based ERA Hart Sargis Breen, said inventory seems even more scarce on the ground.

“The demand has never really gone down since the market took off over 6 years ago, it’s remained strong consistently,” he said. “We see many homes go under contract in a matter of days or a week. Many communities have a two-week supply of inventory.”

Rochester leading the pack

Rochester sits atop metro market rankings at a relatively affordable $299,900 median list price, with homes spending a median of just 21 days on the market and only 1.0 months of supply — the tightest inventory of any major market in the country.

Its price reduction rate is 20.2%, well below the national average.

Hartford follows with a median list price of $510,500, 28 days on market, and 1.1 months of supply. Its price reduction rate is 27.0%.

“Many listings last three to four days,” said Levine. “Many homes receive six and up, even in excess of ten offers, with the winning bid significantly over the asking price by tens of thousands of dollars. On an occasion we are seeing a home sell for list price or below, but I would say that is still the exception and not the rule.”

Grand Rapids, Mich., the lone Midwest market in the top five, recorded a median list price of $419,900, a median of 28 days on market and 1.2 months of supply.

Its 35.5% price reduction rate is closer to the national norm, suggesting somewhat more balance while demand remains strong.

Buffalo recorded a median list price of $264,900 — the lowest among the five hottest markets. Homes spent a median of 35 days on the market and inventory stood at 1.4 months.

Collier said the area’s affordability is helping attract buyers even as prices remain competitive.

“Yes, we’re definitely affordable,” she said. “We have a lot of older housing, so that, I think, keeps our prices a little bit lower, and yeah, we’re just affordable overall. Homeownership is still obtainable here for the average consumer.”

Buffalo’s price reduction rate was 32%, below the national rate of 41.4%.

While some sellers are adjusting prices, Collier said a reduction does not necessarily mean demand has weakened.

“I think if sellers overprice, they do end up dropping a little, but then they’ll often still sell for over asking,” she said. “Officially, we’re selling at 106.8% of asking price, so multiple offers are still coming, but yeah, if you price it too high, you don’t get the activity.

“You have to price it a little bit on the lower side to generate the activity and generate the showings because the consumer is still expecting to pay over asking in our market.”

Northeast and Midwest regions also sit atop hot statewide housing markets — with Connecticut at No. 1.

Boston defies affordability concerns

Boston represents the high-price end of the Northeast’s hot-market spectrum.

The Boston-Cambridge-Quincy metro posted a median list price of $899,900 — nearly $390,000 above the next-highest market in the top five and more than three times Rochester’s median.

Yet buyers continue to move quickly, with homes selling in a median of 42 days and supply at 1.4 months.

Boston’s price reduction rate of 37.8% is the highest among the top five but remains below the national rate.

Veneziano said Boston’s appeal extends beyond housing prices.

“Boston’s just, it’s a great place to live, in my opinion,” he said. “Personally, I call it home, and I see reports about reasons people are here; education, healthcare, walkability — I think there are all kinds of factors. Boston has a lot of specialties in medicine and biotech and technology education. There are a lot of people who relocate here for work or for school.

“I have a neighbor who relocated from elsewhere in the United States, and thought [Boston] was going to be a pit stop. They couldn’t believe how much they and their family have loved Boston, and now it’s really become a home for them.”

The metro is also doing a good job of building a future buyer pool as renters become more established and mortgage rates potentially improve, Veneziano added.

“I’ve been working with first-time homebuyers and empty nesters a lot as of late, and a lot of my empty nester clients are very discerning,” he said. “They know exactly what they want, and we’re seeing the demand. The demand is still here.”

Buffalo competition could persist through year’s end

Buffalo’s relisted rate of 10.7% is the highest among the five hottest markets.

Collier, however, said she has not personally seen a significant increase in homes returning to the market.

She expects demand to remain strongest for well-maintained homes.

“I still see we have pent-up demand for good, solid new listings that are well cared for, well maintained,” said Collier. “I think our housing is going to stay very stable here. We might not see as many multiple offers. Maybe we won’t be seeing six or 10 offers or down to maybe getting three or four offers on a listing, but it only takes one. I think we’re still going to continue to increase in price for the remaining parts of the year.”

As the national market gradually softens, the Northeast’s leading metros are demonstrating that tight supply can sustain competition across a wide range of price points.

From Rochester to Boston and Buffalo, the common denominator remains limited inventory — and for now, buyers are still chasing the homes that do come to market.

“We are still operating in a very low inventory market, so it’s a great time to sell,” said Levine. “I tell all our buyers to not be discouraged, though. As long as a buyer has proper representation so that they make a very clean and strong offer to a seller, we will see them be successful in locating a home that suits the buyer very well.”