CAPITAL REGION, N.Y. — With fall underway, those interested in real estate are wondering if cooler weather will bring a cooler market.
In the Capital Region, competition remained strong in August, impacting prices and inventory. Numbers, according to the most recent report released by the Greater Capital Association of Realtors. Closed sales slowed by nine percent down to 1,352 homes, compared to 1,485 in August 2020, the report said, noting that sellers contributed 1725 new listings into the mix.
Nationally, the story is the same. “Sales slipped a bit in August as prices rose nationwide,” said Lawrence Yun, National Association of Realtors chief economist, in a press release. “Although there was a decline in home purchases, potential buyers are out and about searching, but much more measured about their financial limits, and simply waiting for more inventory.”
National Association of Realtors reported the median existing-home price for all housing types in August was $356,700, up 14.9 percent from August 2020.
This marks 9.5 years straight of year-over-year gains, Yun noted.
Though the Greater Capital Region’s median price of $269,900 was comparatively lower than the national average, the percentage of increase was nearly the same with a 13.8 percent increase over August 2020.
Buyers remain present in the market, but inventory, affordability, and back-to-school preparations sometimes have a decelerating effect on sales in late summer.
Still, sellers received 101.3 percent of the original list prices for their homes in August.
Without a strong addition of new homes to the inventory, pricing will most likely continue to rise throughout the fall, the report said, sharing that August’s inventory declined by 19.4 percent.
Builders’ efforts brought 116 new homes with a median sale price of $402,379 to the local market last month, a decrease of 56 percent year over year.
Across the country, home builders continue to struggle to meet buyer demand. According to the Commerce Department, housing starts nationwide dropped 7 percent last month. Labor shortages, increased material costs and supply-chain setbacks continue to challenge builders. Some are temporarily pausing projects due to availability and the cost of materials.
“As the region and the rest of the country prepare for cooler weather and more indoor activities, health concerns loom large as summer hits the rearview mirror,” the report concluded. “Vaccination rates, challenges with new variants and the new normal of working at home may continue to impact the Capital Region market with the fervor of first-time buyers and renters who want to spend this winter in their own home.”
More information is available online at gcar.com.
