Low inventory not affecting home prices

ALBANY >> Despite a continued decline in the number of homes for sale throughout the Capital Region, prices continue to be mainly unaffected, according to the latest survey by the Greater Capital Association of Realtors.

In its September report, the group said the regional housing market finished the third quarter of the year on a high, drawing down the number of available properties even as the number of new listings last month actually increased by about 2 percent over the same period in 2015, from 1,483 to 1,509 homes.

Demand has driven sales, causing heavy reductions in inventory across the region but not necessarily prices. The month’s supply of inventory fell 33 percent to an estimated 6.5 months, as compared to 9.7 months in 2015, even though median sale price closed the third quarter with only a 1 percent year-over-year increase, to $200,000. Sellers, however, are getting a whopping 94 percent of their original list price at closing.

“Low inventory levels make this a seller’s market,” said association President Marie Bettini. “Contributing to the low inventory is the continued low interest rates, which have prompted refinancing instead of listing.”

Pending sales held mostly steady from September to September, with 967 last month as compared to 958 in 2015, but due to changes in banking regulations and financing requirements, it is taking longer for buyers to close sales, even though demand is high and offers are being made. September’s closed sales fell 5 percent from the same month in 2015.

“The current demand can be attributed in part to demographic shifts occurring in the region,” said association CEO Laura Burns. “Millennials have reached prime homebuying age, while many baby boomers no longer need a three- or four-bedroom home on a spacious lot. Many millennials have growing families and are looking for larger homes, while empty nesters are downsizing.”

Recent studies have also shown short-term rentals are keeping a number of homes off the market. With rental prices and employment opportunities on a consistent climb, however, Realtors say yearover-year increases in home buying are probable for the remainder of the year.

In Rensselaer County, the number of pending sales increased from 262 in September 2015 to 245 last month, while the number of new listings jumped by 19 percent to 406 and the median sales price rose by 2 percent to $172,500. Across the river in Albany County, pending sales increased from 220 in September 2015 to 241 last month, while the number of new listings dropped by 10 percent to 179 and the median sales price rose by 5 percent to $217,250.

Moving north to Saratoga County, pending sales actually fell from 124 in September 2015 to 126 last month, while the number of new listings rose by 8 percent to 448 and the median sales price fell by 1 percent to $268,500.

The Greater Capital Association of Realtors is a professional trade association officially representing the region’s real estate industry since 1920. It includes a broad base of more than 3,000 professionals, including licensed real estate brokers and sales agents, multidwelling owners, appraisers, mortgage and banking professionals, title and abstract companies and other companies servicing the real estate industry.