The cooling economy and rising mortgage rates are starting to have a chilling effect on the once-hot local housing market.
The Buffalo Niagara housing market remains solid – prices are rising and homes remain hard to find. But the break-neck pace has cooled in recent months.
Median home prices rose by 5% in August – the smallest increase in the monthly median price since June 2020 and the second straight month that the rise in median prices has been below 10%. Until July, monthly median sale prices had risen by at least 10% for 22 straight months.
With mortgage rates now topping 6%, the pace of home sales has slowed. With the median sale price reaching $220,000 over the past year, the rise in mortgage rates is adding hundreds of dollars to the monthly mortgage payments of new buyers. So fewer deals are being signed.
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Pending sales – deals that have been signed but have not closed yet – have dropped for 14 of the last 15 months, according to data from the Buffalo Niagara Association of Realtors.
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