Bullish on the Rochester Real Estate Market

It really is beginning to look like the local real estate market is about to experience another shift. A positive one this time! The basis for the 2010 real estate market shift is pent-up demand, fueled by government stimuli and low interest rates.

There is no question that the 2009 federal tax credit for first time homebuyers helped stimulate real estate sales. Many new buyers, however, remained on the fence at the end of the year. Some were cautious but many others were just joining the market in the fall and did not have a selection of new listings to choose from. These holdovers, along with new market entries enticed by the extension and expansion of the tax credits for both first time and move-up homebuyers, both groups poised to take advantage of continuing low interest rates, present a motivated pool of home buyers.

In spite of increased market activity last year, sales of homes in the upper price points languished. Home buyers were active at the $200,000 price point and below. Sales of homes listed above this threshold were slower and virtually non-existent higher up the market. There seemed to be no compelling reason to buy at the $300,000 and up price point. As a result, and unless personal circumstances trumped otherwise, there was no compelling reason to sell at this level either.

Is there pent up buyer demand at the higher price point? Are sellers at the higher price point confident enough to finally join the market? Whether this ready pool of buyers will help sales at the upper end of the market remains to be seen but I am quite bullish on the market

There is significant evidence that we are in the midst of an economic recovery. Sellers at the upper market level who have been patiently waiting for a recovery smell the opportunity. I am expecting to see a large influx of new listings at the higher price points this year. Entry level buyers will re-create the market activity of 2009 at the affordable end which will cause move-up buyers to take advantage of the stimuli expansion and lower rates and help create a market at the middle and upper ends of the market.

Call me overly bullish but I see the potential for this market shift firsthand. I am blessed to be part of the Mark Siwiec Team within the RE/MAX Realty Group organization. Our team alone will be putting approximately $8 million of listings on the market within the next several weeks. We are ready for the market to take-off. Are you? Check out our new listings at www.realestateonthemove.biz