Buyer demand remains solid in housing market

CAPITAL REGION, N.Y. » Strong buyer demand continues among the Capital Region real estate market, according to the latest report from the Greater Capital Association of Realtors.

As the market navigates the new normal in 2021, there are no signs of buyer demand slowing down, the report said, noting that even with less inventory yearover-year, the market saw a nine percent increase in closed sales for the month of January.

“As long as interest rates continue to remain low and inventory scarce, there will most likely be multiple buyers for appropriately priced homes,” GCAR president Jeffrey Decatur said in the report. “Realtors will continue to navigate sellers through multiple offers with, ultimately, one contract being made while disappointing several others.”

A drop in the market inventory is both typical and expected in January, the report said, sharing that the region’s number of new residential listings decreased by 26 percent last month compared to the previous year.

Additionally, months’ supply of inventory decreased 48.8 percent to a record low of 2.2 months in the Capital Region.

Looking ahead, “Shadow or no shadow, Spring is right around the corner so the timing is right for sellers to list and the new construction season to start revving up, which will provide some relief to the pressure on inventory,” GCAR CEO Laura Burns said in the report

Last month’s days on market for new construction dropped by 47 percent over January 2020 to 41 days on market.

Prices are reflecting the market with the median sales price on existing homes increasing 12 percent to $230,000, with the percent of original list price received at sale rising to 97 percent.

In Rensselaer County the median sales price on existing homes increased slightly to $201,000 last month compared to January 2020. Across the River in Albany County it also increased slightly to $236,000.

In Saratoga County, the median sales price on existing homes increased 15 percent to $320,000.

Price increases are projected throughout 2021 given the high demand for a historically low number of homes available for sale and the strong increase in new construction materials, the report predicted.

“Homebuyers would do well to prepare for a competitive season with lower inventory in the more affordable price categories and continued growth in list prices,” it continued. “Still, the current affordable interest rates will continue to offset and should enable buyers to get more house for their home buying dollar.”