Low inventory still plagues housing market

CAPITAL REGION, N.Y.» The Capital Region housing market continues to struggle with an imbalance of supply and demand entering the spring selling season, according to a report from The Greater Capital Association of Realtors.

For sellers, a small inventory of houses means the ones available sell fast.

For buyers, the inventory shortage means an extremely competitive market where they have no choice but to move quickly with their offer.

Pending sales dropped three percent to 1,187 from April 2016 and new listings dropped 13 percent to 1,639, compared to 1,881 in April 2016.

The number of homes for sale fell as compared to this time last year. Inventory levels decreased market-wide by 24 percent to 4,963 units.

In Saratoga County, new residential listings were down by six percent to 437 and closed sales were down by 10 percent to 201 in April 2016, compared to the previous April. The median residential sale price rose by 15 percent in that time as well at $282,500, though the average sale price decreased slightly to $296,235.

In Rensselaer County, new residential listings were down seven percent to 226 and closed sales were down 21 percent to just 104 in April 2016, compared to the previous April. The average sales price was $183,808, up six percent from April last year.

Average home prices also went up six percent in Albany County during that time, reaching $245,406 in April 2017. New listings were down 16 percent here at 374, and closed sales were down 13 percent to 194.

Across the region, months’ supply of inventory dropped , along with year-over-year supply as the region’s housing inventory failed to keep up with demand.

“More inventory in all sizes and types would be great, but it’s still not happening.” Greater Capital

Association of Realtors president Joel Koval said in a press release. “More inventory helps keep prices from reaching levels that make homeownership or moving difficult to achieve for many potential buyers,” Koval said.

Furthermore, new home construction has slowed. That, coupled with an inventory shortage, is preventing many owners who may be ready to move into a larger or more expensive home from doing so.

Closed sales dropped 12 percent from 890 in April 2016 to 786 in April 2017. “An inventory shortage affects a number of statistics,” Greater Capital Association of Realtors CEO Laura Burns said in the release. “With fewer houses on the market, fewer closings are taking place each month. We’re seeing sellers well positioned in this market with several receiving multiple offers above list price.”

Throughout the Capital Region, sellers are receiving 95 percent of their original list prices at closing. Homes in the area are spending an average of 78 days on the market until sale. That figure is down 15 percent from 92 days on market in April 2016.

The inventory shortage is causing price hikes across the market. The median sale price rose six percent to $195,000 from $183,950 in April 2016. The spring market cycle has seen a fair amount of buyer competition along with an increased demand for inventory. Although strong demand can create an affordability issue for some buyers, prices are expected to continue to rise.