Realtors call on developers to fill housing gap

ALBANY, N.Y. » “Build it and they will come” is the message the Greater Capital Association of Realtors is spreading to developers in the area.

“With year- over-year inventory in decline, builder confidence should be increasing and movement in new home construction throughout the region should be on the rise shortly. The demand for it is present,” a press release from the group said.

Supply continues to drop, and until more previously owned or new homes are added to the market, this will remain a major factor in residential real estate, the release explained. Closed sales decreased by 7.4 percent from June 2016 to 1,177 for the month. Overall, inventory levels market-wide decreased 19.7 percent to 5,646 units.

The number of homes for sale in the region was down compared to this time last year, with months’ supply of inventory down 22.2 percent to 5.6 months.

President of the Greater Capital Association of Realtors Joel Koval said in the release that, low inventory continues to be a factor in the local real estate market. “If sellers are on the fence about making a move, these numbers should bring them into the mix in the coming weeks.”

The summer started with positive numbers that should carry through to Labor Day, according to the organization. Capital Region unemployment remains low at 4.2 percent, wage growth is up and commercial investment is growing.

As a result, buyer demand remains strong with pending sales increasing 9.3 percent higher than last June to 1,313 for the month.

With the inventory a contributing factor, prices were up compared to last year at this time. The median sales price increased 7.2 percent to $214,450.

The percent of original list price received at sale also rose to 95.9 percent since June of 2016.

Capital Region new construction pending sales closed out June at 107, a 32 percent increase over June, 2016 with a median sales price of $390,720. This is a six percent increase over last June.

Average days on market for new construction and resale dropped by 15 percent to 53 days in June over last June’s numbers.

National Association of Realtors chief economist Lawrence Yun said in the release that closings were down in most of the country last month because interested buyers are being

tripped up by supply that remains stuck at a meager level and price growth that’s straining their budget. “The demand for buying a home is as strong as

it has been since before the Great Recession,” he said. “Listings in the affordable price range continue to be scooped up rapidly, but the severe housing shortages inflicting many markets are keeping a large segment of would-be buyers on the sidelines.”

Laura Burns, CEO of the

Greater Capital Association of Realtors, added ” With job creation increasing and mortgage rates remaining low, the pull toward homeownership is expected to continue to put pressure on the market. If supply and demand means anything, folks who have a home to sell, should list it now.”