Area real estate market remains strong

CAPITALREGION, N.Y. » The area’s housing market remains strong in the off season, according to the most recent report from the Greater Capital Association of Realtors.

Throughout the Capital Region, market activity continues to trend upward for the seventh consecutive month, the report said, noting that typically the market slows down at this time of year.

However, as a result of the COVID-19 pandemic-related shutdowns earlier this year, and low inventory levels, the association expects that the real estate market will remain fairly active throughout the winter months.

The region is experiencing a sellers’ market that may continue well into the new year, Greater Capital Association of Realtors president Tom McGroder said in a press release. “Multiple offers have become the norm. When inventory is low, prices go up.”

In November, Capital Region homes averaged 49 days on market, and sellers received 97.6 percent of their original list prices.

The record- low supply of homes for sale combined with strong demand means home prices are rapidly escalating and eroding the benefits of the low mortgage rate environment, according to the Federal Home Loan Mortgage Corporation.

“The rapid price growth is causing affordability issues, especially for first- time buyers that don’t have the housing equity from a sale to use as a down payment,” Greater Capital Association of Realtors CEO Laura Burns said in the release.

Compared to last November, the median sales price for a Capital Region home increased by nearly 10 percent to $240,580 in November 2020.

In Rensselaer County, the median residential sales price remained about the same as last November at $219,500, but across the river in Albany County its increased 11 percent to $248,750.

In Saratoga County, the median residential sales price was much higher at $324,700, with a seven percent increase compared to last November.

The rate of price increases is expected to remain the same in the coming months, teh report said, especially for single-family homes.

Meanwhile, inventory levels market-wide decreased 36.3 percent when comparing last November to this November.

Although supply remains low, there was a 16.3 percent increase in new listings in the region over November 2019.

Closed sales increased 29.2 percent compared to November 2019, and pending sales increased too.

Across most of the country, showing activity remains higher than the same period a year ago, suggesting that strong buyer demand is likely to continue into what is typically the slowest time of year. The Capital Region saw 10,507 showings in the month of November, indicating that despite the chilly temperatures, the market may remain busy well into the first quarter of 2021.

More information from the Greater Capital Association of Realtors, including the full report of market statistics, is available online at gcar.com.