Buffalo Number Two In Top Ten Real Estate Markets 2011

The Buffalo - Niagara Falls, New York State, metro area has been named number two in the top ten USA real estate markets. RealtyTrac also included the Buffalo market in its top ten list for buying and investing.

The area’s foreclosure activity fell 43.5% in 2010, to one of the lowest rates in the USA. For perspective, Buffalo saw one in 332 housing units receiving a foreclosure filing, compared to one in 45 units nationally.

Signs of a healthy market

According to RealtyTrac, this is an important indicator of a healthier market, because it means foreclosures are having less of an impact on the sale prices of non-foreclosure properties. When a market is flooded with foreclosures, REOs, short-sales etc, the lower sale prices dilute the average value of property in that area.

Rick Sharga, senior vice president of RealtyTrac, explains: “When you get beyond a certain percentage of sales that are foreclosure-related, it takes the whole market down with it.”

Today, according to Realtor.com, Buffalo has one of the fastest-rising median list prices in the USA. Buffalo was also one of the few markets to see its median sales price rise from the year before in both 2009 and 2010. The median sales price at the end of 2010 was $126,500, which was a 14.3% rise from the year before.

Stability, strength and sales over the asking price

Susan Lenahan, a leading real estate agent in the area, comments: “Buffalo is different from the rest of the country. We have a very stable market. The Buffalo market is incredibly brisk, incredibly strong – especially in the urban areas. I am having houses sell over the asking price in one day.”

Buffalo is certainly seeing growth in its economy. This is most likely created from business growth in the region, particularly in the federal sector. The area is home to seven districts for the US Army Corps of Engineers; a field office for the FBI; the Niagara Falls Reserve Station; a field office for the Department of Homeland Security; and the headquarters for the US District Court for the Western District of New York.

In addition, Buffalo hosts New York’s largest state university and many high-tech jobs in the medical industry. Yahoo operates a data centre on the outskirts of Buffalo and Verizon is reported to be opening a data centre in Niagara County.

Lenahan concludes: “Those kinds of business opportunities were not typical in Buffalo before. It’s no longer a Rust Belt [factory] town.”

An ideal investment location

High rental demand and surprisingly-low investment property prices in Buffalo make the location incredibly popular for investors seeking a high level of income, combined with capital growth over time. Investors can typically expect 16% - 22% net yield per annum on buy-to-let investments in the area.

You can buy a fully-refurbished and tenanted property from just $25,000 (circa £15,625). How? At Axis we work with our Buffalo partners to buy distressed property and foreclosures at bargain prices. We then completely renovate the property and rent to local people.

Our Buffalo partners are able to achieve this because they have been buying and investing in the area for more than twenty years and have an unparalleled network of professional contracts, from banks and vendors to refurbishment teams.

To find out more about our fully-managed, ‘armchair’ investments in Buffalo, call us today on +(0)1273 447 300. You can also download our Maximum Income Buffalo Property Investment decision pack and watch our Buffalo video.

Posted in USA Property