For immediate release
February 24, 2017
For additional information contact:
Laura Burns/Executive Officer
Greater Capital Association of REALTORS®
Ph: (518) 464-0191
The new year got off to a start with buyer demand across the Capital Region continuing to be in an upward trend. Pending Sales rose 7 percent to 816 from 762 in January 2016.
Sales totals experienced a slow start due to ongoing low inventory levels across the region and the typical seasonal effect dropping 8 percent to 650, which is down from 710 in 2016. The number of homes for sale was down compared to this time last year causing inventory levels market-wide to decrease by 21 percent to 5,096 units (5 months). New Listings fell 6 percent to 1,113 from last year.
Greater Capital Association of REALTORS® President, Joel Koval, RealtyUSA, said new construction is part of the solution for a market facing inventory concerns. “A drop in inventory is both typical and expected at this point until either more sellers enter the market or more homes are built for the buyer community,” Koval said. New construction is slower than 2016 with 30 percent less new listings in January, 2017 (126) as compared to January of last year (181). Median sales price of new construction remains within 1% of last year at $385,116. Though that price is 52% higher than the existing home sale median price of $185,000, the days on market for new construction show that pent up buyer demand is sweeping up the new homes within 49 days on market.
Percent of Original List Price Received at Sale rose to 93.8 percent since last year. Homes in the Capital Region are spending an average of 71 Days on Market Until Sale. That number is down 7 percent from 84 days in January 2016.
Lawrence Yun, NAR chief economist, says the housing market will favor sellers heading into the year. “Competition is likely to heat up even more heading into the spring for house hunters looking for homes in the lower- and mid-market price range,” said Yun. Nationwide, First-time buyers were 33 percent of sales in January, which is up from 32 percent both in December and a year ago.
“The good news for the Capital Region’s real estate market and our region in general is that unemployment rates hit a ten-year low of less than 4 percent in December” said Greater Capital Association of REALTORS® CEO, Laura Burns. “If more homes are made available for sale, the market should remain healthy well into 2017,” Burns added.
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.