How is the housing market in New York performing in 2016?
It's been a long time coming, but the housing market in New York seems to have turned the corner on the real estate collapse that triggered the financial crisis in 2008. In fact, a recent report by the New York State Association of REALTORS indicates that the first quarter of 2016 has been the best start to the state's housing market since 2007. The Association is a not-for-profit trade organization representing more than 50,000 real estate professionals in the state.
Home Sales in New York
For the first three months of the year, there were 23,932 closed sales which equates to a 17 percent improvement over the same period in 2015. Median sales prices also slightly improved by about 1 percent. The first quarter median sales price was $230,000, across the state, compared to $228,000 in the first quarter of 2015.
“Building on the momentum of the 2015 market, home sales continued to grow at a robust pace in the first quarter of 2016,” said Duncan R. MacKenzie, CEO of the Association.
The encouraging first quarter results come on the heels of what was a solid housing market last year, and that momentum has carried over into the first quarter. Some observers believe this is a reflection of rising consumer confidence in the economy as well as the value of homeownership. There are other reasons to believe that this trend will continue into the spring season.
First, pending sales are also up by 23 percent, which will most likely be booked in the second quarter. Moreover, inventory levels at are their lowest level in ten years, which should prove to be a motivating factor for sellers who have been sitting in the fence. The months' supply of inventory fell by about 20 percent to 6.8 months supply, down from 8.5 months at the end 2015 first quarter in 2015. A balanced market is one that has a 6 month to 6.5 month supply.
Why This Matters
The continued improvement in housing sales is good news for sellers and buyers alike. Sellers who have been waiting to sell now have an opportunity to take advantage of an active market. Similarly, homebuyers should be buoyed by price stability. A 1 percent rise in median prices means that home prices are still affordable and good buys can be found.
That being said, buying and selling a home entail a number of complexities that require the advice of an experienced real estate attorney. If you have questions about home sales in the eastern upstate New York area, call Ianniello Anderson at (518) 350-7755 today.