Photonics Inc coming to Rochester NY... Jobs Jobs Jobs.... FINALLY

[Mark Updegraff]

http://www.democratandchronicle.com/story/money/bu...

I think real estate professionals are going to be caught of guard next year when low inventory meets even higher demand. IMO sales will be a little stronger in suburb areas and the markets where buyers can still get a good value are going to get really heated. Right now the spread between a city house in a good area and a city house in an "up and coming" area is 60-90$ / sq ft. That is a HUGE spread in price per sq ft for a city . IMO, the price per sq ft in nice areas will continue to inch up. In the "up and coming" areas we've got such a glut of bank owned REOs, current foreclosures, and deferred stock that prices will continue to have lower comps and will keep appraisals from skyrocketing quickly. Nice product will continue to climb in price per sq ft in the "up and coming" area (already seeing it, I'm hitting the top of the market every time on sales in this area when product looks good for retail buyers) but there will be opportunities for people to pick up the previously deferred, foreclosed, REO stock with enough room to make some money flipping into it to the retail buyers. Flippers in my market are typically happy with a 10-15k profit when all is said and done but as things have gotten tighter this has become difficult unless you're buying from a wholesaler or getting a really good deal off the MLS (MUCH harder as there are so many buyers and low inventory). I predict the average price per square ft will be up $5 in my target area next February / March and $10/ft by the end of 2016. That still leaves a huge gap, so I could see my estimates here still being conservative... Time will tell!!!