Fewer homes for sale push prices higher
Inventory down nearly 20 percent from 2016, according to Realtors
ALBANY, N.Y. >> The limited inventory of homes for sale remains a challenge for the Capital Region housing market, according to The Greater Capital Association of Realtors.
Although new listings increased by 8 percent to 1,241 — up from 1,145 in February 2016 — the number of homes for sale in the Capital Region dropped 19 percent from February 2016 to 5,061 last month. National Association of Realtors chief economist Lawrence Yun said in a news release too few properties for sale and weakening affordability con- ditions stifled buyers in most of the country.
“Realtors are reporting stronger foot traffic from a year ago, but low supply in the affordable price range continues to be the pest that’s pushing up price growth and pressuring the budgets of prospective buyers,” he said. “Newly listed properties are being snatched up quickly so far this year and leaving behind minimal choices for buyers trying to reach the market.”
Homes in the Capital Region are spending an average of 78 days on the market, down from 84 days in February 2016 and 100 days in February 2015.
In Rensselaer County, there were just 56 closed residential sales in February, down 19 percent from last year. The average sale price also dropped 7 percent in that time, to $171,751, while new listings increased slightly, to 150.
Across the river in Albany County, February brought 144 closed residential sales, up 14 percent from last year, with an average price of $242,317 and a 6-percent increase to 298 new residential listings.
In Saratoga County, where the average sale price was $286,781, there were 158 closed sales and a large increase in new residential listings to 381 in February, compared to the previous year. Throughout the region, sellers are receiving 93.9 percent of their original list price last month, an increase over February 2016 from 92.1 percent.
Greater Capital Association of Realtors President Joel Koval said in the release it is a challenging market on both sides of the table.
“Sellers are getting a generous number of offers in this market,” Koval said. “The worry for sellers then becomes that there will not be a generous number of homes to choose from when they become buyers.”
Closed sales across the region were up 6 percent from February 2016, to 541, while the median sale price for a single-family home in the Capital Region rose 4 percent, to $189,740. Pending sales increased 8 percent, to 860, signaling the continuation of a healthy market in the first quarter of 2017.
Greater Capital Association of Realtors CEO Laura Burns is encouraged by recent jobs numbers.
“Unemployment has reached pre-recession levels,” Burns said in the release. “This matters because job growth and higher paychecks fuel home purchases, which has a positive economic impact across many industries and retail establishments in our region.”