Our local real estate market has been super hot lately. How long will this hot streak continue?
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Our real estate market has really been on fire in Upstate New York, and in the Capital District, we’ve seen some record months. Actually, the month of August was the number one month across New York state in terms of the number of homes sold. This is the highest number since August 2007.
Inventory still remains light, however, in that there are fewer homes on the market now than there were last year. Last year at this time, we had about 10 months of supply; we’re now down to about six months of inventory. What we’re finding is that at six months of inventory, we’re in more of a balanced market, whereas last year we were in more of a buyer’s market.
As inventory supply slips further down into five months’ worth, and even three months’ worth in some areas, we’ll be headed into more of a seller’s market. As a result of this, home prices will start to increase.
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We’re beginning to head into a seller’s market.
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So far this year, we’ve only seen about a 2% increase in home sales here in the Capital District, but closed sales are up 14%, new listings are down by about 7%, and pending sales are up as well. This means that we are seeing a lot of homes selling but not a lot of new homes coming onto the market.
Homes are also selling much quicker this year. While last year at this time, the average days on market was about 73 days, this year we’re looking at about 64 days on market.
When people ask, “How is the market?” I tell them that interest rates are still down at record-lows and that some are predicting the rates to go back up after the election. Unemployment rates are still under 5% and consumer confidence is still very strong.
What does this mean if you’re a buyer? Buyers should take advantage of this unique opportunity in the market and act quickly. Sellers should still continue to price their homes aggressively to get them sold but should be sure to price them accurately. A good real estate agent will be able to price their homes correctly so that they sell in today’s market.
As we move into the 4th quarter of 2016, we anticipate that interest rates will continue to stay low and that it will still be a great market for sellers in 2017.
If you have any questions about our market or anything else related to real estate, give me a call or send me an email. I’d be happy to help you!
