Housing shortage pushes prices higher
Analysis of Capital Region real estate is still showing signs of a sellers’ market, with a busy summer season underway.
According to a latest monthly report from the Greater Capital Association of Realtors, buyers continue to seek out homes from an inventory that continues to shrink, while sellers are seeingmultiple- offer situations above list price throughout the area.
The number of homes for sale in July was down sharply compared to this time last year, dipping 18.7 percent to 5,728 units. In response, area builders are working on new construction, with a 31 percent year- over- year rise in the number of new listings and a corresponding increaes in median sales price.
The shortage of houses available for sale also places pressure on the time on market. Average time on market for new construction and existing homes was 53 days in July, a 15 percent year- over- year reduction. Across the country, 51 percent of the homes sold in July were on the market for less than a month, according to the National Association of Realtors.
“July was the fourth consecutive month that the typical listing went under contract in under one month,” said National Association of Realtors chief economist Lawrence Yun. “This speaks to the significant pent- up demand for buying, rather than any perceived loss of interest. The frustrating inability for new home construction to pick up means inadequate supply levels will keep markets competitive heading into the fall.”
Capital Region markets are no exception. Prices are up compared to last year at this time. The median sales price increased 4.5 percent to $ 219,000, still belowthe national median sales price for existing homes of $ 258,300. Average residential sale prices for July increased three percent in Saratoga County to $ 324,476, eight percent in Rensselaer County to $ 209,079 and four percent in Albany County to $ 259,190. However, residential closed sales were down in each of these areas, with inventory levels staying about the same as July 2016.
“The July median price across the North east was $ 290,000, while the Capital Region’s landed at $ 216,450,” said Laura Burns, CEO of the Greater Capital Association of Realtors, “a very affordable price to live in such a thriving region of New York state.”
Price increases are projected to continue in accordance with buyers’ demand. The percent of original list price received at sale rose to 96.5 percent in July.
“July buyer activity was energetic and kept realtors busy,” said Greater Capital Association of Realtors President Joel Koval. “Of course, the three percent dip in number of new listings over last June makes it more of a challenge tomeet themarket’s current needs, but existing home prices are still very reasonable in our region.”