The real estate market in Springville, NY, has experienced notable changes recently, influenced by various factors including fluctuating interest rates. As of December 2024, the median sold price for homes in Springville was $239,950, reflecting an 11.1% increase compared to the previous year. The median price per square foot stood at $138. Notably, 2-bedroom homes saw a 20% price increase, while 3-bedroom homes experienced a 23.6% rise. Conversely, 4-bedroom homes observed a 23.8% decrease in median sold price during the same period. The number of homes for sale in December 2024 was 23, marking a 17.9% decrease from November 2024. Despite this reduced inventory, the number of homes sold increased by 25% month-over-month, with five homes sold in December. The average days on market for these homes was 34 days, up 51.8% from the previous year.
Interest rates play a crucial role in the real estate market, affecting both buyer affordability and seller activity. Higher mortgage rates can deter potential buyers due to increased borrowing costs, leading to a slowdown in home price growth. For instance, in August 2024, while home prices in major U.S. cities reached new highs, the pace of growth slowed significantly, indicating market strain. In Western New York, particularly in areas like Buffalo, the housing market has been robust. Buffalo was identified as the hottest housing market for 2025, driven by high demand and limited supply. The city's strong economy resulted in two new jobs for every home built, attracting young families and professionals. However, the construction industry has struggled to keep pace with this demand, leading to projected home value increases of 3% in 2025, following a 6% rise in 2024.
The real estate market in Springville, NY, reflects broader trends observed in Western New York. Rising home prices, influenced by limited inventory and fluctuating interest rates, present challenges for both buyers and sellers. While recent interest rate cuts by the Federal Reserve may offer some relief, the overall impact on the housing market will depend on various factors, including economic conditions and housing supply dynamics.