As New York State entered Phase 1 of the Governor’s plan for reopening, the Capital Region’s real estate market prepares for a rebound in Phase 2. Due to the shut-down of activity in mid-March, pent up demand from Buyers is expected to bring market activity back to a healthy level – no pun intended there. Realtors will be vigilant in keeping Sellers and Buyers safe while coordinating the projected increase in real estate activity. All indications are that the spirited competition for well-priced homes will return to the first quarter level by early July.
The impact of the Coronavirus was felt throughout communities in the Capital Region with most industries taking an overwhelming blow. As a leading economic indicator, the local real estate market was one of the first to tumble with April’s New Listings experiencing a 58 percent drop to 824 in a year over year comparison to 2019 which reported 1,961 New Listings. Pending Sales took a severe hit as well dropping by 57 percent (519, April 2020) as compared to the 1,224 in April 2019. As a result of the continued Shelter in Place, the month’s supply of inventory dropped to a record low of 4.1
Closed Sales decreased 17 percent from April 2019 (930) to 774 for the month. When asked about the comparatively mild dip, Greater Capital Association of Realtors President, Tom McGroder of Thomas J. Real Estate, commented, “Realtors were very busy in the first quarter so there were a good number of transactions in the pipeline when real estate was closed down in mid-March. Most of those transactions will have worked their way through to closing by the end of May so we’ll have to wait and see what those numbers yield.”
GCAR CEO, Laura Burns, added “Inventory levels market-wide decreased 21 percent to 4,149 units impacting the Median Sales Price to shift up by 2 percent to $218,250. Inventory will continue to remain low while new construction and sellers await the launch of Governor Cuomo’s Phase 2 Reopening Plan. Realtors will most definitely play an active role in the Capital Region’s re-opening, rebound, and recovery.”