Buyers are beginning to return in full force this spring. The competition is fierce for well-priced homes in desirable locations. As prices continue to gain traction the median sales price in the Capital Region increased 5 percent to $214,946 with the percent of original list price received landing at about 95 percent. The median sale price for new construction increased 3 percent to $389,347, which puts purchasing new construction just out of reach for many in the Capital Region. Days on market remain at less than 3 months for existing and new construction homes.
Inventory is still a concern throughout the Capital Region as it strains to keep pace in the most competitive price ranges. New listings in the Capital region decreased 3 percent to 1,973 as compared to last April. Hampered by the inclement weather, new construction listings were down 18 percent compared to April 2018. Pending sales followed with a 12 percent decrease to 1,151 for the month. The number of closed sales came in at 898 for the month; a dip of 5 percent over April 2018.
Lawrence Yun, NAR’s chief economist, said he is not overly concerned about the dip in sales and expects moderate growth very soon. “We are still seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers and sellers will look to take advantage of these conditions,” he said.
In April the national unemployment rate dropped to 3.6 percent, the lowest level since 1969. A historically low unemployment rate can provide reassurance to consumers. Wage growth is expected to follow suit. Rising consumer confidence and reduced borrowing costs will bring new buyers seeking start-up or move-up homes into the Capital Region housing market. With the median price of new construction at $389,347, will their needs be met?