Report: Home sales up in area
But closed sales down in Rensselaer County
CAPITAL REGION, N.Y. » Despite cold weather moving in, the real estate market remains hot both locally and nationally, according to a report from the Greater Capital Association of Realtors.
Last month’s existing-home sales surged for the third straight month and reaching their strongest pace in nearly 11 years, according to the National Association of Realtors.
Lawrence Yun, National Association of Realtors chief economist, said in a press release that home sales in most of the country expanded at a tremendous clip in November. “Faster economic growth in recent quarters, the booming stock market and continuous job gains are fueling substantial demand for buying a home as 2017 comes to an end,” he said.
New York’s Capital Region is riding the crest of that same surge. Pending sales increased 10 percent from November 2016 to 864 for the month. Closed sales increased over November 2016 to 962 for the month causing the number of homes available for sale to drop to 4,992 as compared to the 6,374 on the market this time last year.
On the nearly 22 percent drop in inventory levels market-wide, Greater Capital Association of Realtors President Joel Koval said in the release, “a dip in inventory this time of year is not surprising, but the increase in pending sales indicates that it is still a very busy market – especially for this time of year.”
This reduction in inventory impacted prices only slightly compared to last year at this time. The region’s median sales price increased 2 percent to $200,000.
In Saratoga County, where the median sale price was $284,450 for November, new residential listings were down 24 percent from the year before, but the number of closed sales stayed about the same.
To the south in Rensselaer County, residential listings were down by 25 percent and closed sales were down 17 percent compared to November 2016. Prices stayed steady with a median of $177,500.
Across the river in Albany County, where the median residential price was $215,000, new residential listings actually increased by 17 percent, with a two percent rise in closed sales over the previous November.
Sales prices do not seem to be absorbing pressure in the face of the strong economy and high demand, the report said. The percent of original list price received at sale fell to 94.2 percent since last year. As a result, buyers continue to hit the market causing the months’ supply of inventory to drop by 23 percent to 4.9 months. The impact is causing homes to come on and off the market 30 days faster than in November 2016.
The National Association of
Realtors stands firm that elimination of the mortgage interest deduction will have an adverse impact on the nation’s housing market, as the doubled standard deduction will reduce the desire to take out a mortgage and itemize the inter- est associated with it, thus reducing demand. Greater Capital Association of Realtors CEO Laura Burns said in the release, “Those in the real estate industry along with homeowners, prospective homeowners and those considering selling are watching national and state politics closely. So much is in play right now. As an economic indicator, congressional or state legislative actions that will adversely affect residential sales or the public’s desire and/or ability to own their own home can impact the country’s overall economy. The Greater Capital Association of Realtors will continue to take a firm stance on promoting homeownership in this region in the coming year.”