The real estate market in Rome, New York has managed to remain relatively flat, even in the face of a national market collapse. Since 2009, the average sales price for the area has remained close to the previous year for six consecutive years. This speaks to the consistency and the strength of the Rome housing market. With trends including a reduced level of unemployment and a below average cost of living, the area should remain strong for years to come. Like most other areas, foreclosures are a concern, but not enough to hamper the promising outlook it currently has. A positive forecast projected for the next twelve months indicates that the Rome, NY is real estate market poised for growth. As a result, Rome real estate investing should see a lot of activity.
Realtor.com puts the average sales price for the Rome housing market right around $111,641. This is a sharp reduction in both the New York average ($532,891) and the national figure ($307,586). The current average home price in the Rome real estate market is $120,307; whereas the statewide average is $203,013. The national number, on the other hand, is $205,250. At first glance, these numbers may appear disappointing. However, upon closer inspection, they are right on track. While Rome’s real estate numbers are below average, they are strong for the market they are in. According to historical information provided by Zillow, Rome housing market prices have stayed within 25 percent of each other over the past ten years. Sales price numbers never got too high, and never dipped too low. A market with this type of consistency, where home values tend not to fluctuate greatly, is appealing for homebuyers. Those interested in Rome real estate investing will find that the area offers a lot of promise as well.
Zillow’s home value index indicates there was a modest 1 percent drop in home values in the previous twelve months. In the same way that Rome’s sales price numbers have been consistent, the same holds true for local home values. Since 2009, there has been as little as a 3 percent variance in any given month to current home values. The market may not have shown a great amount of appreciation, but it also hasn’t had to. There was no great drop in value that the market needed to recover from. Zillow predicts that the market will appreciate by 2.5 percent for the next twelve months. This type of growth may not be overly attractive, but it is done at a steady, sustainable pace.
An area of slight concern for the market has to do with the level of local job growth. Rome faced a negative job growth number last month (0.12%), as compared to a positive national number (1.18%). The future job growth number for Rome is 34.10 percent, however, as compared to the national prediction of 36.10 percent. A positive sign is that this job growth has not weighed down local unemployment. The current unemployment number for Rome is 5.4 percent, which is right on par with both the statewide and national figures. The largest employer in the area is the Rome Memorial Hospital. The area also has many local services in place to attract new business. With a stable and growing economy, the market remains an attractive option for Rome real estate investing and owning a home.
Affordability continues to benefit the Rome housing market. The average cost of living is just over $49,000 a year, which is 24 percent lower than the statewide average. Additionally, the current median household income for Rome – at $55,503 – is above the national average. A whopping 51 percent of Rome homeowners have lived in their properties for at least five years. This number is well above the 39 percent average for New York State. This further speaks to the desirability of the area, in that homeowners are comfortable with the market and with their monthly mortgage payments.
Rome has never been a market to greatly increase the number of new housing permits. At the height of new housing demand in 2006, there were only 24 permits issued for the year. Out of those 24, all of them were for single-family properties. Over the next six years, the next highest amount of permits was 2011, when 20 were issued. This speaks to the relatively small population for Rome. It also indicates, to some degree, that there is a lack of current inventory. With the median age for Rome at 45, there may be a lack of new homebuyers in the market.
According to RealtyTrac, there are about 232 homes in the Rome housing market that are considered distressed. Otherwise known as foreclosures, these homes are either in default, up for auction or bank-owned. Regardless of their states, each should help to benefit the Rome real estate investing community. While the amount of distressed properties in the Rome housing market have declined over the last month, they are up considerably on the year.
Rome’s distressed property market is distributed fairly evenly, with auctions consisting of 50 percent of the distressed market, and bank-owned homes represent the other half. However, the increase int he past year is mainly attributed to bank-owned foreclosures, as they have increased 200 percent over the course of 12 months. Outside of availability, those interested in Rome real estate investing will appreciate the spreads these homes offer. According to RealtyTrac, distressed properties sell for 71.4 percent less than non-distressed homes; that is a savings of nearly $60,000 per home.
The Rome housing market has withstood the test of time. With a low cost of living, lower unemployment and stable home values, the area is as safe as they come. If first-time homebuyers give a boost to the market, it may be enough to push it forward in coming years. Either way, there are enough solid fundamentals in play to make the market worth buying or investing in.
Rome Housing Market Summary:
- Current Median Home Price: $120,307
- Current Median Sales Price: $111,641
- 1-Year Appreciation Rate: -1.0%
- Unemployment Rate: 5.4%
- Population: 32,837
- Median Household Income: $55,503