Report: Housing affordability remains strong
CAPITAL REGION, N.Y. >> Prices are up and inventory is down in the local residential real estate market, according to the Greater Capital Association of Realtors.
“At this point in the year, there is a good sense for how the housing market is likely to perform for the foreseeable future,” a report from the association said. “While it remains true that sales prices are running higher and inventory options are still relatively low, buyers are beginning to find some wiggle room at price points and geographies throughout the region and in points north and south.”
Housing affordability remains strong in the Capital Region, the report said, enabling those with a median annual household income of $69,000 to more than afford a home at the median sale price of $224,580 (assuming a 20 percent down payment).
In Saratoga County, the median residential sale price was much higher at $318,450. This was seven percent higher than July 2018.
Meanwhile in Rensselaer County, that number was lower than the region at $196,500, but increased by four percent from the year before.
Across the river in Albany County, the median price increased by six percent in that time to to $244,950.
New listings rose only slightly compared to 2018 further straining the inventory to a drop of 11 percent, the report shared.
Prices crept up by six percent over last July and they are expected to continue that trend through the fall season.
Despite the Capital Region’s increased growth in population and increase in median income rates, pending and closed sales decreased by 7 percent and 8 percent respectively from July 2018. This is most likely due to a lack of affordable supply.
“Demand is high for mid-tolower priced homes but we have insufficient supply which is pushing
the prices up,” said Greater Capital Association of Realtors president Jay Christiana, in the report. “Low inventory not only impacts existing home prices but also new construction,” he said. The numbers are proving Christiana right – the median cost of new construction was an 8 percent increase to $412,444 and those new homes are not sitting on the market long. New construction reported 60-70 days on market.
During the record-setting 121-month economic expansion, the unemployment rate has dropped
from 10 percent in 2009 to 3.7 percent, yet many consumers continue to struggle financially.
Greater Capital Association of Realtors CEO Laura Burns commented in the report, “Low unemployment and historically low mortgage interest rates have certainly helped facilitate housing affordability and the pursuit of homeownership throughout our region. While wage growth has occurred, it’s tough keeping up with the cost of living in New York State.”
Overall, in 2018 the Census Bureau reported New York State’s population declining faster than any other state in the country. But the local outlook is brighter, Burns added, “The Greater Capital Region is one of the few areas in state that has experienced an increase in population, jobs, and wage growth. Albany has a lot to offer.”