For immediate release
For additional information contact:
Laura Burns/Executive Officer
Greater Capital Association of REALTORS®
Ph: (518) 464-0191
Capital Region Real Estate Market Heats Up Heading Into Summer
The housing market in the Capital Region rebounded in May after seeing Pending Sales, New Listings and Closed Sales drop in April 2017. Pending Sales jumped 11 percent to 1,384.
Sellers are beginning to take advantage of a hot housing market. New Listings increased 6 percent to 2,138 in the Capital Region, up from 2,017 in May 2016.
Homes in the Capital Region are spending an average of 74 Days on Market Until Sale. That number is down 9 percent from May 2016 when homes had an average of 82 Days on Market Until Sale. In May 2015, homes were spending an average of 97 Days on Market Until Sale.
Greater Capital Association of REALTORS® President, Joel Koval, RealtyUSA, says low inventory levels have caused many buyers to be ready with competitive offers. “We’re seeing more and more multiple offers for homes in desirable neighborhoods. In many neighborhoods in the area, sellers are receiving an average of 95 percent of Original List Price at Sale,” Koval said.
The inventory of homes for sale dropped sharply from 6,825 in May 2016 to 5,399 in May 2017. Inventory shortages are not unique to the Capital District or across the country. Lawrence Yun, NAR chief economist, say the 21 percent decrease in inventory is a challenge facing the housing market across the country. “With new and existing supply failing to catch up with demand, several markets this summer will continue to see homes going under contract at this remarkably fast pace of under a month,” said Yun.
The number of Closed Sales dipped 3 percent to 987 – a lag that will catch up in the coming summer weeks as REALTORS® and lenders bring buyers through the mortgage process. A more stringent loan approval process is now in place to prevent a repeat performance of the Great Recession. Incomes are verified, a reasonable amount of money must be paid toward the home prior to purchase and home inspections must be completed and reconciled prior to the closing date being set. Greater Capital Association of REALTORS® CEO, Laura Burns, noted that, “Closing figures will improve as the summer rolls out. We are approaching the busiest time of year for residential sales and expect that if more Sellers jump into the market, multiple offer situations will be avoided. If not, the September statistics on median sold price should be interesting.”
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