Real estate market looks to rebound in Phase 2
CAPITAL REGION » As New York state entered Phase 1 of Gov. Andrew Cuomo’s plan for reopening, the Capital Region’s real estate market is preparing for a rebound in Phase 2.
Due to the shut-down of activity in mid- March, the hopes are that pent up demand from buyers will yield regular market activity.
Realtors note they plan to be vigilant in keeping sellers and buyers safe while coordinating the projected increase in real estate activity. All indications are that the spirited competition for well-priced homes will return to the first quarter level by early July.
Officials said the impact of the COVID-19 pandemic was felt throughout communities in the Capital Region with most industries taking a hit.
As a leading economic indicator, the local real estate market was one of the first to tumble with April’s new listings experiencing a 58 percent drop to 824 in a year to year comparison with 2019 which reported 1,961 new listings.
Pending sales took a severe hit as well dropping by 57 percent (519, April 2020) as compared to the 1,224 in April 2019. As a result of the continued shelter in place order, the month’s supply of inventory dropped to a record low of 4.1
Closed sales decreased 17 percent from April 2019 (930) to 774 for the month.
Greater Capital Association of Realtors President Tom McGroder of Thomas J. Real Estate commented on those numbers and what he hopes to see moving forward.
“Realtors were very busy in the first quarter so there were a good number of transactions in the pipeline when real estate was closed down in mid-March. Most of those transactions will have worked their way through to closing by the end of May so we’ll have to wait and see what those numbers yield,” McGroder said in a news release.
“Inventory levels market-wide decreased 21 percent to 4,149 units impacting the Median Sales Price to shift up by 2 percent to $218,250. Inventory will continue to remain low while new construction and sellers await the launch of Governor Cuomo’s Phase 2 Reopening Plan. Realtors will most definitely play an active role in the Capital Region’s re-opening, rebound, and recovery,” GCAR CEO Laura Burns added.