Based on statistics released today by the Greater Capital Association of REALTORS® (GCAR) the confluence of declining inventory and increased activity indicate that buyers may no longer have a negotiating advantage as the market becomes balanced. The report is based upon data collected by the Capital Region Multiple Listing Service, Inc. a regional service owned by GCAR and the Saratoga Schenectady Schoharie Association of REALTORS®, Inc.
Miguel Berger (435-9944), 2013 GCAR president says, “The fact that the inventory of homes for sale has decreased by 15.4% from last year at this time; and that contracts of sale for March rose when compared to March 2012 shows us that what was once a very strong market for buyers has reached a much needed balance where sellers are not at a negotiating disadvantage.” He adds, “The March year-to-year increase in contracts of sale, the point where buyer and seller reach agreement on the terms of a sale, marks the 16th month out of the last 17 where this was the fact. Clearly buyers are returning to the market. And as we see the market start to balance itself we can also report that housing prices are appreciating at a ‘normal’ rate. All in all the market appears to be healthy and we expect this to be a long term trend.”
James Ader (464-0191, Ext. 16), GCAR’s chief executive officer says, “With our first quarter reports complete, a good sampling of the market, closed sales are up by a modest 1% over the first quarter of 2012. However, the median sales price and the average sales price are up by 3% and 4% respectively.” He adds, “Another very positive sign for the real estate market is that there do not seem to be any indications that interest rates will be rising in the near future. Therefore, low interest rates, the return of buyers, and a shrinking inventory are all signs that the residential housing market will experience an exciting spring & summer.”
“We remind everyone who is interested in buying or selling a home to talk with a professional. The housing purchase is too large to tackle without a complete understanding of the Capital Region’s market and of the entire real estate transaction”, says Mr. Berger. “We caution buyers, if you were waiting for the market to bottom out that time has passed. And if you are waiting for interest rates to drop lower you may well miss the wonderful opportunity which exists today. Prices are appreciating and interest rates are at historic lows.”
GCAR is a professional trade association representing 2,600 real estate professionals in the Capital Region. GCAR is the “Voice for Real Estate ™ in the Capital Region.”