R
ochester, New York, is a city where house prices are fiercely competitive. Despite being considered affordable, sales have become a high-stakes game of bidding wars. Real estate agents like Jeff Scofield prepare their clients for auction-like sales, with properties often selling for significantly more than the asking price.

    The market has seen prices surge by around 60 percent in the last five years, according to Scofield. He recalls a time when it would take months or even a year to sell a house, but now homes are selling within a week due to the lack of inventory. "The buyers all descend on the property and if they like it and it's priced reasonably, then they put in offers and it's gone," Scofield said.

    Talha Shahid, a local realtor, notes that even modestly priced homes are selling for thousands above their listed price. A home listed at $300,000 might sell for $350,000 after just one or two offers. The median house price in the metro area reached $225,000 at the end of March, up 12.5 percent from last year.

    Despite the rising prices, Rochester remains an affordable city, with a median household income of around $67,000 in 2022. However, the lack of inventory has led to buyers being more flexible and willing to compromise on their demands. "They'll take whatever you want to leave," Scofield said. "You don't even have to clean out the junk in the basement."

    Many homeowners are hesitant to sell due to uncertainty and climbing mortgage rates. As a result, the market is experiencing a shortage of homes for sale, with just 913 properties available at the end of March, down 8.1 percent from last year. On average, homes spend only eight days on the market.

    Scofield attributes the lack of inventory as the main factor prolonging any potential slowdown in the market. He also notes that taxes in the area have a significant impact on house listing prices, with high property taxes deterring some buyers. "Our taxes are high," Scofield said. "You know, New York's got high property taxes, so historically we'd have people coming in from California or out of state and they'd look at a house and go, 'this is only $500,000. This would cost a million where I'm from.'"