Market sees positive trend locally
CAPITAL REGION, N.Y.>> Buyer demand is continuing on an upward trend for 2017 in the local real estate market, according to a report by the The Greater Capital Association of Realtors.
Last month, pending residential sales for single-family homes rose seven percent to 816, from 762 in January 2016.
Sales totals experienced a slow start due to ongoing low inventory levels across the region, and the typical seasonal effect, dropping eight percent to 650, which is down from 710 in 2016.
The number of homes for sale in the Capital Region was down compared to this time last year, causing inventory levels market-wide to decrease by 21 percent to 5,096 units. New Listings fell six percent to 1,113 from last year. Greater Capital Association of Realtors president Joel Koval said in a news release that new construction is part of the solution for a market facing inventory concerns.
“A drop in inventory is both typical and expected at this point until either more sellers enter the market or more homes are built for the buyer community,” Koval said.
New construction is slower than 2016, with 30 percent less new listings in January, 2017 as compared to January of last year.
Median sales price of new construction remains within one percent of last year at $385,116. Though that price is more than 50 percent higher than the existing home sale median price of $185,000, the days on market for new construction show that pent up buyer demand is sweeping up the new homes within 49 days on market. The percent of original listing prices received at sales rose to 93.8 percent, which is good for sellers in the area.
Homes in the Capital Region are spending an average of 71 days on the market until sale. That number is down seven percent from 84 days in January 2016.
In Rensselaer County, there were 149 new residential listings, a five percent increase from January last year, but closed sales were down 18 percent to 71 transactions. However the average price rose five percent in that time to $171,857.
In Albany County, January brought 276 new residential listings, and 173 closed sales, both down from the year before. The average price was $241,388, up seven percent from January 2016. In Saratoga County, where an average home price was up 10 percent to $301,844, new listings were down by 16 percent. A total of 184 sales closed, down two percent from last January. Lawrence Yun, National Association of Realtors chief economist, said in the release that the housing market will favor sellers heading into the year.
“Competition is likely to heat up even more heading into the spring for house hunters looking for homes in the lower- and mid-market price range,” Yun said.
Nationwide, first-time buyers made up 33 percent of sales in January, which is up from 32 percent both in December and a year ago.
“The good news for the Capital Region’s real estate market and our region in general is that unemployment rates hit a 10-year low of less than four percent in December,” said Greater Capital Association of Realtors CEO Laura Burns in the release. “If more homes are made available for sale, the market should remain healthy well into 2017.”