Cities like Buffalo, Cleveland and Johnstown, PA with massive population declines have massive shortages of homes
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Did any body ever stop to think that many homes are owned by
single individuals rather than the one family one home train of thought?
Homes are snatched up by investors who are willing to take the gamble and
wait it out until the next real estate boom...................
What I noticed around here is many homes are being purchased by 2-3 individuals. I don't know wether there are investors or that's how one has to buy with permanent roomates. My guess there are plans to rent. I started checking out recent sales with multiple owners and they're occuppied.
The big problem here is we're too close to a city where few want to live. Word must be out because the last several sales on the block to were to out of state buyers with new jobs along with several ex city residents.
Areas without a growing population don't build many new homes, which limits supply to existing homes. Areas with a changing population have more churn - more people move in-and-out - than stagnant cities where people stay put. The above cities need enough of a demand increase to drive up prices to the point where it is cost effective for new construction to compete with existing homes. Until then, there won't be a lot on the market.
In Buffalo, and certainly some other cities, there is also a market that never posts to MLS and accounts for many of the home sales. Especially because there are so many homes receiving multiple offers, sellers can save commissions by doing private sales as there is such a demand.
Buffalo is considered a "very competitive" market with median sale price in the city of 165k, selling 3% above list and 12 days average on the market.
Cleveland is considered "somewhat competitive" with a median city sales price of 105k, selling 4% below list and 38 days average.
Detroit is considered "somewhat competitive" with a median city sales price of 65k, selling 5% below list and 39 days average.
Last edited by RocketSci; 04-04-2021 at 07:50 AM..
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