Your search results

Lack of Supply and Demand

Posted by GCAR on March 2, 2018
Press Releases
0

PRESS RELEASE
For immediate release

For additional information contact:
Laura Burns/Executive Officer
Greater Capital Association of REALTORS®
Ph: (518) 464-0191

Another month of price gains in the Capital Region underlines the ongoing trend of strong demand and weak supply. As sellers attempt to take advantage of rising prices, buyers may become more selective.

Months’ supply of homes fell by 26.8 percent to 4 months impacting the inventory of homes for sale to decline by nearly 25 percent to 4,222 homes. Pending sales rose by 8 percent to 844 sales preparing to close.

As a result of the inventory reduction, prices rose compared to this time last year. The Median Sales Price increased 6 percent to $195,000. Greater Capital Association of Realtors president, Susan Sommers of Better Homes and Gardens Tech Valley, noted that “Given the inventory, price increases are expected to continue throughout 2018. Nationally and locally the volume of new construction is starting to increase and will have a positive impact on our market.”

Usually, the slowest month of the year, last month’s Closed Sales landed at 675 – a decrease of 4.3 percent from January 2017. The number of new listings came in at 1,077 – a 6 percent dip over last January’s 1,144. The Capital Region is not alone in the need for additional inventory. Our local market is in step with real estate markets across the country.

Lawrence Yun, NAR chief economist, says January’s retreat in closings highlights the housing market’s glaring inventory shortage to start 2018. “The utter lack of sufficient housing supply and its influence on higher home prices muted overall sales activity in much of the U.S. last month,” he said. “While the good news is that REALTORS® in most areas are saying buyer traffic is even stronger than the beginning of last year, sales failed to follow course and lagged last January’s pace. It’s very clear that too many markets right now are becoming less affordable and desperately need more new listings to calm the speedy price growth.”

Average days on market for new construction and resale were reported at 68 days on market as compared to last January’s 73 days on market. Buyer demand for new construction remains high causing new construction to experience even more activity with average days on market tumbling by 31 percent to 34 days on market. Percent of Original List Price Received at Sale rose to 94 percent since last year.

##

The Greater Capital Association of REALTORS® is a professional trade association officially representing more than 3,300 REALTORS®. It is the local chapter of 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, appraisers and other companies servicing the real estate industry.

Compare Listings