Report: Real estate market will continue positive line

Pendling sales of existing homes declined 10 percent

CAPITAL REGION, N.Y. >> Economic analysts predict that national residential estate will continue along a positive line for the rest of the year, a recent report from the Greater Capital Association of Realtors said.

This remains the market outlook around the Capital Region right now, the report continued, sharing that last month 1,487 new listings were posted spending an average of only 59 days on the market.

Pending sales of existing homes declined by 10 percent as compared to September 2017 to 887 for the month, and closed sales decreased by nearly the same at nine percent from September 2017 to 965 for the month.

As has been the trend in the Capital Region throughout the summer season, listings for new construction rose adding to the available inventory.

A total of 232 new construction homes were listed last month – an increase of six percent over last September. Sales of new construction were also on the rise last month with an increase of seven percent and a median sale price of $373,000; an increase of six percent from September 2017.

Prices for existing homes in the area were up as well, with the median sales price increasing by six percent to $215,000. Even with the recent rate hike, this figure still remains quite affordable as compared across the country, which is experiencing an overall median sales price of $258,000 and median price in the Northeast landing at $286,200, up four percent from September 2017.

In Saratoga County, where the median sales price is above the regional median, it rose 14 percent from $273,500 last September to $313,000 this September. However, residential closed sales and pending sales were both down here compared to last year.

Prices are likely to continue to rise if buyer demand begins to squeeze the available inventory, the report said. Inventory levels market-wide decreased nine percent to 5,436 units. Overall months’ supply of inventory was down 10 percent to 5.4 months impacting the percent of the original list price received at sale to rise to 96.8 percent.

Regarding first-time home buyers, National Association of Real-

tors chief economist Lawrence Yun said in a press release, “Rising interests rates coupled with increasing home prices are keeping first-time buyers out of the market, but consistent job gains could allow more Americans to enter the market with a steady and measurable rise in inventory.”

Greater Capital Association of Realtors president Susan Sommers of Better Homes and Gardens Tech Valley Real Estate agreed adding, “This is why New Yorkers need Governor Cuomo to move forward on the New York First-Time Home Buyers Savings Account. The creation of a first-time homebuyer savings account that provides a state income tax deduction of up to $5,000 per year for individuals and $10,000 per year for couples will help New Yorkers save for the purchase of a first home.”

Laura Burns, CEO of GCAR said first-time homebuyers in the Capital Region are experiencing a variety of challenges right now, not only in inventory but also in costs. Burns noted in the release, “New York State’s closing costs are some of the most expensive in the country. On a $225,000 home, a firsttime home buyer can expect to be presented with closing costs of about $5,500. Coupled with the strong lack of entry-level inventory available, particularly in new construction, some potential home buyers may be forced to remain renters or in their parents’ basements.”