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Housing stays stable
National crisis isn’t severe here, as local real estate holds its value

The Buffalo News
May 7, 2008

Recent news that housing prices nationwide fell in February at the fastest rate ever is troubling — but not as troubling, here, as it could be. In the Buffalo Niagara region, real estate values remain steady.

Here’s the upside of not catching the national real-estate boom of recent years — that roller-coaster ride the rest of the country has been taking of late doesn’t fully apply here.

Trendy, overpriced, buying fads in places like Florida and California have had no affect on the Buffalo Niagara area, where the average home price is around $130,000 to $140,000 — not high enough in price to attract jumbo loans and a proliferation of adjustable rate mortgages — and, in the aftermath of the bursting real estate bubble, foreclosures.

Real estate activity here is slightly down in the number of sales this year versus last year, but this area has experienced an appreciation of real estate values at a steady rate over the past decade. There has been no appreciation that has gone into the double digits, fueling the kind of market frenzy seen in other areas.

Without experiencing the tremendous growth spurt, Buffalo Niagara hasn’t seen the huge drops in value seen during the national slowdown. That may be just a silver lining in a very dark cloud, but it also keeps out-of-town investors eyeing this market.

While this area’s real estate values have never caught up with the rest of the country — Charlotte, N. C., has posted a positive return 1.5 percent year-over-year, for example — there’s a lot worth focusing on around here, including short commutes and reasonable home prices.

The Buffalo Niagara Association of Realtors is planning a trip to Washington in a couple of weeks to lobby for relief in one major barrier to taking full advantage of those factors — the area’s high taxes. That fight must take place on not only the national but the state and local levels, including the current Lundine Commission push to lessen property taxes through consolidation of services, school districts and governments.

If decent services can be maintained with reasonable taxes, this area could really start to attract attention as a real estate investment. There are pluses here, from the emerging Buffalo Niagara Medical Campus to cultural and heritage tourism to the colleges and universities that are making a difference. With short commutes, reasonable home prices and hard work to improve schools, there is hope for supportable and community-enhancing growth.