Melt down brings out real estate buyers
As the large piles of snow disappear, all indications are that it will bring out the buyers who
have not wanted to tread into the cold to jump into the market. As the Capital Region thaws
out, inventory is expected to rise and home sales are projected to increase.
Pending Sales increased 11 percent from February 2014 to 650 for the month though
inventory levels remain low for savvy sellers. Inventory levels region-wide were down 13
percent to 6,015 units. More options are needed to keep the market clicking. Although
listings were down compared to last year, an influx of new listings is expected soon if market
forces prevail. Greater Capital Association of REALTORS® President, Cathy Griffin of
Keller Williams, Capital District, stated that, “though interest rates may rise in 2015, they
certainly are not predicted to jump. New York is poised for postive wage growth and
expanded employment will help drive first-time home buyers into the market as they realize
they can own their own home instead of paying rent for about the same or less”.
Prices were down from February 2014 with the Median Sales Price dipping by 9 percent to
$180,000. Prices are expected to creep higher in year-over-year comparisons through much
of 2015 so buyers should take advantage of current interest rates and current prices and make
their move now. A recent study conducted by the National Association of REALTORS®
found that the largest group of recent buyers was the millennial generation, (those 34 and
younger) who composed 32 percent of all buyers with Generation X (ages 35-49) close
behind at a 27 percent share.
Months supply of inventory was down about 16 percent to 7.5 months. Sellers are receiving
and allowing lower offers to take hold, but there is little reason to expect that this will
continue into the summer months. Percent of Original List Price Received at Sale fell to 92
percent since last year.
For at least the spring months, Federal Reserve Chair Janet Yellen seems to be willing to hold
rates steady and continue to watch the effect on the economy causing leading ecnomists to
project a Spring of increased inventory, rising prices and perhaps as much as a 20 percent
increase in homes sales aross the country this year.
Information from The Greater Capital Association of REALTORS®, a professional trade association officially representing the real estate industry since 1920 (formerly the Albany County Association of REALTORS®) and 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, multi-dwelling owners, appraisers, mortgage and banking professionals, title and abstract companies and other companies servicing the real estate industry.