Demand for Housing Does Not Dampen
Despite the Capital Region experiencing one of the wettest summers on record demand for housing throughout the Capital Region remains strong. More than 1,200 properties sold last month at 38.8 percent more than last June with the existing single-family homes median sales price increasing by 18 percent to $265,000. The region’s new construction median sales price also increased, but by less than 10 percent to $399,086. Comparatively, the Capital Region housing market remains affordable as the Nation’s median price for single-family homes shot up by 24 percent to $350,000.
Buyers hoping to move into a new home before schools reopen and possibly the issuance of new Covid-related limitations in the coming months, continue to bring in multiple offers causing the region’s Percent of Original List Price Received to hit 101.7
As a result, inventory continues to be a challenge. Though more homes went on the market in June than May, the year-over-year comparison shows that overall inventory dropped from 3.6 months to 2.2 (June over June). Sellers added 1,949 homes to the market last month; down from 2070 in June 2020 while buyers went under contract for 1,222 and closed on 1,225 homes.
“As the rate of sales continues to outpace the rate of listings coming onto the market, many, particularly first-time buyers, are often out-bid. With the help of real estate professionals, we’re hoping New York lawmakers will pass proposed legislation that focuses on creating middle- and low-income homeownership incentive programs to make homebuying more accessible for all New Yorkers,” said Greater Capital Association of REALTORS® President Jeffrey Decatur of Re/Max Capital. “We can see the strong impact this shrinking supply has had on year over year prices.”
By all indications, home price increases will persist through the summer.
Across the country, homes are still being snapped up quickly as demand remains elevated. Laura Burns, CEO of the Greater Capital Association of REALTORS® noted that, “Days on market reported in at what some agents say amounts to a blink of the eye. Capital Region single-family homes spent, on average, only 35 days on the market last month – half of the time during June 2020.” With no rate increase on the horizon, the real estate market looks like it will stay the course into the fall.