For immediate release
For additional information contact:
Laura Burns/Executive Officer
Greater Capital Association of REALTORS®
Ph: (518) 464-0191
Seller’s Market Hits the Capital Region
The Capital Region housing market continues to struggle with an imbalance of supply and demand as we enter the spring selling season. For sellers, a small inventory of houses means the ones available, sell fast. For buyers, the inventory shortage means an extremely competitive market where they have no choice but to move quickly with their offer.
Pending Sales dropped 3 percent to 1,187 from April 2016. New Listings dropped 13 percent to 1,639 last month, compared to 1,881 in April 2016. The number of homes for sale fell as compared to this time last year. Inventory levels decreased market-wide by 24 percent to 4,963 units. Months’ supply of inventory dropped 26.5 percent to 5 months. Year-over-year supply continued its downward path as the region’s housing inventory failed to keep up with demand.
“More inventory in all sizes and types would be great, but it’s still not happening.” Greater Capital Association of REALTORS® President, Joel Koval, RealtyUSA remarked. “More inventory helps keep prices from reaching levels that make homeownership or moving difficult to achieve for many potential buyers,” Koval said. New home construction has slowed. That, coupled with an inventory shortage, is preventing many owners who may be ready to move into a larger or more expensive home from doing so.
Closed Sales dropped 12 percent from 890 in April 2016 to 786 in April 2017. “An inventory shortage effects a number of statistics,” Greater Capital Association of REALTORS® CEO, Laura Burns said. “With fewer houses on the market, fewer closings are taking place each month. We’re seeing sellers well positioned in this market with several receiving multiple offers above list price,” Burns continued.
In the Capital Region, sellers are receiving 95 Percent of Original List Price at closing. Homes in the area are spending an average of 78 Days on Market Until Sale. That figure is down 15 percent from 92 Days on Market in April 2016.
The inventory shortage is causing price hikes across the market. The Median Sale Price rose 6 percent to $195,000 from $183,950 in April 2016. The spring market cycle has seen a fair amount of buyer competition along with an increased demand for inventory. Although strong demand can create an affordability issue for some buyers, prices are expected to continue to rise.
The Greater Capital Association of REALTORS® is a professional trade association officially representing more than 3,300 REALTORS®. It 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, appraisers and other companies servicing the real estate industry.