For release January 27, 2015
For additional information contact:
Laura Burns/Executive Officer
Greater Capital Association of REALTORS®
Ph: (518) 464-0191 x15
2014 is being reported as another recovery year. With a broad pattern of rising prices and improving inventory, the overall market has shifted from being drastically undersupplied to approaching equilibrium. Throughout New York, closed sales fells only slightly in 2014 with sellers receiving 95-95% of list price. Nationally, median prices increased to their highest levels since 2007.
Here in the Capital Region we could still use some increase in listing activity. Pending sales increased 8 percent from December 2013 to 522 for the month. The increase in sales brought inventory levels down market-wide by 12 percent to 8 months (6,235 units). Sustained low mortgage and inflation rates coupled with more normalized prices encouraged buyer confidence in 2014.
Overall prices were lower when compared to December 2013 causing the median sales price in the Capital Region to fall by 4 percent to $186,500. Prices are expected to increase in 2015, but at a pace in line with historical norms.
Sellers are enjoying offers closer to their list price, a fact which should entice even more sellers to list. The percent of original list price received at sale rose to 93 percent since last year. Greater Capital Association of REALTORS® President, Cathy Griffin, with Keller Williams Capital District, speculated that the low rates, job expansion and pent up demand should have a positive affect on the region’s real estate market this year. “We’re looking forward to a busy year in the market as local initiatives for ecnomic growth continue, more jobs are created and federal economic policies are sustained.”
Interest rates remained lower than anyone expected for the entire year. That trend snowballed with solid and accelerating private job growth to empower more consumers to buy homes. Laura Burns, GCAR CEO noted, “The fact that the mortgage interest deduction remains in place provides a great motivator for first-time home buyers – still a main lag in the market – to make their way into homeownership and it also enables current homeowners who are now realizing equity in their homes, to take advantage of it by “trading up” as their families and personal needs grow.” Job growth and low inflation add to the positive outlook for 2015 though student loan debt and sluggish wage growth still remain hurdles to greater overall recovery.
The Greater Capital Association of REALTORS® is a professional trade association officially representing the real estate industry since 1920 (formerly the Albany County Association of REALTORS®) and is the local chapter for the New York State and National Associations of REALTORS®. GCAR is composed of a broad base of professionals including licensed real estate brokers and sales agents, multi-dwelling owners, appraisers, mortgage and banking professionals, title and abstract companies and other companies servicing the real estate industry.